Do not participate in link farms or you will risk penalty or banning from the search engines. So what is a link farm? It is system where all members link to each other via a common set of link pages. The result is that all members have a links page with the other members' urls on them. While this results in your site receiving instant link populurity, Google can and will penalize and/or ban sites your site. In addition, a link farm is usually automated and most often demands a link back from all participating sites. If you see massive links pages on a site, that have no regard for link themes or topics, be wary of linking to the site.
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