It’s a network of websites that link to each other for the sole purpose of increasing their rankings and PageRanks. Let me give you an example. If you ware to create a link farm (don’t!) you could launch 4 different websites, for example. Each on a different server. Then you would link page #1 to pages #2, #3, #4. Page #2 to pages #1, #3, #4, and so on. Basically, every page links to every other page. Such a network isn’t very powerful when it contains only 4 sites, but when they’re hundreds or thousands of them (which isn’t uncommon) then it’s a completely different story. BUT!
This is considered as a “black hat” SEO technique. Don’t take part in it unless you want your site to get penalized.
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