After Penguin 2.0 Most of IMers think that link building is dead etc etc.. But truth is link building is NOT DEAD! it just changed the way it works. This is what Matt Cutts Said, About Link building..
Eric Enge:There are people who think link building is illegal now. Is link building illegal?
Matt Cutts:No, link building is not illegal.
Matt Cutts:It’s funny because there are some types of link building that are illegal, but it’s very clear-cut: hacking blogs, that sort of thing is illegal.
Overall View about Link building:
# Link Building Is Not Bad: Just don’t try to get the link first, have compelling content people want to link to instead.
# Press Releases Links: They still “probably not count” but your goal should not be the link but the exposure the press release gives you to editors who may read them and cover your story.
# Content Syndication: If your content is being syndicated on other sites, give Google signals to know you are the original source. Make sure you publish well before others, possibly use rel=canonical, link to main source of content, and maybe use authorship.
# Problem With Guest Posts: A large number of people are doing it the wrong way, guest posts have become more like article directories or article banks these days.
# Links: Links are still “the best way” to rank content.
So In bottom Line, Link building really works, ONLY IF YOU HAVE High Quality Website. Unfortunately the whole thing was not video Taped 🙁