Websites that maintain good incoming links will get many targeted visitors from their link partners. These link partners are also a good source of information and can offer value for the visitors that come to your website more often. The idea behind link partners is to find web sites with complementary content so that you enhance your web site. For example, if you sell computers, it wouldn't be a bad idea to link to a site that sells printers.

Linking to your competitors is much more dangerous. The fact of the matter is that when you link to your competitors you are handing them your business. They may be handing some of theirs back to you, but the trade off simply isn't worth it. If you are in a situation where it is your product or theirs, do not link to them. Aside from the obvious issue of losing business to their site, you may even lose the returning link if you don't keep an eye on it.