Link-Building Step #1: Link Research

The first step is to do a bit of research. What kinds of sites do you want to get links from? How do you go about finding them? There are several strategies, but one that will get you going in the right direction is to research your competitors' links.

Let's say you just launched a new site selling homebrew supplies. You would likely know that a popular competitive supply shop is NorthernBrewer.com. By finding the sites that link to the Northern Brewer website, you would instantly have a list of relevant sites that would potentially be willing to link to your site as well.

And you don't need any fancy software. Both Google and Yahoo provide ways to perform this link research right from their websites:

Link research on Google. To research the sites linking to your competitor, Northern Brewer, on Google, you would enter the following in Google's search box: http://www.northernbrewer.com.
Link research on Yahoo. To research the sites linking to your competitor, Northern Brewer, on Yahoo, you would go to a special section of Yahoo's site called Site Explorer (https://siteexplorer.search.yahoo.com/) and enter Northern Brewer's URL in the field at the top. Make sure to click the "inlinks" tab to get the list you are looking for.
Now Google is a little stingy with their information. They will typically display only a portion of the links that they have in their database, which is why it's a good idea to use Yahoo's Site Explorer as well. In our example, you'd see that Google shows only 352 links for Northern Brewer while Yahoo shows 62,810.

Any way you slice it, that's a lot of links. Now the hard work starts. You have to go through all those sites and determine which ones you want to have link to your site. Why not just pick them all? Well, just because a site is linking to Northern Brewer doesn't mean they were asked to do it. Remember, any website can link to any other website for any reason at all... and without the site owner's knowledge. There can be some link farms and other dubious low-quality sites in the mix, and you definitely don't want to get links from them.