Link exchange on the other hand, is exchanging link (text or banner type) to another site with close relation with your website. Though this type of link building was punished by Google, but to other search engines like yahoo, msn and others still working fine. You cam check your links in yahoo by typing in the search box ‘link:www.yourdomain.com’ , you can also remove the www if you like to see if there are differences on both search.
Manual submission of course, has bigger percent on the approval ratings, but this is too time consuming, not to mention that this task is also boring. But do you have a choice? Yes, you can pay someone to do the submission services for you. If you can afford it, why not?
Under link exchange, you have to look for a website(s) for you to exchange link with. Your prospect website should be closely related with yours. You can find people looking to exchange links with to most of the forum sites. Digitalforums.com in particular is good forum site for you to look for prospects. Of course, both parties should agree on the location of each link. There is no requirement needed here except that you should be honest enough to state all the details your website and the same with the other party.
Source : http://seologfile.com/