You would think that setting up a reciprocal links directory would be easy, just throw up a page titled “links” on your website and add websites to it. But you should put some thought and time into setting up your directory. How you choose to set up your links directory will affect how many other webmasters want to link to your website.
The first thing you should do is brain storm categories of links that you believe visitors of your website would be interested in. This is very important because you don't want visitors of your website to come take a look at your links and say “These are useless”, or “Why do they link to all these sites about dog care, I came here to find information on skateboarding, not dogs!” After brainstorming your categories you need to decide whether or not you will have separate pages for each category, or if you want to have all categories on one page. I recommend you set up separate pages for each category, unless you know that you will only be linking out to a handful of sites (preferably under 50, definitely under 100).
You should make your links page easy to find. I am MUCH more likely to trade links with a website where I can easily find its links page. I also recommend that your links page be accessible from every page on your website. This helps increase it's Google® Page Rank®. Many webmasters search for high Page Rank® links pages to trade links with. For this reason, I recommend diverting as much Page Rank® to your links pages as possible. Besides linking to your main Links page from every page on your site. I also recommend that you do one of two things to help increase your links pages Page Rank®:
1.Link to each separate category page from your home page, or from every page on your site.
2.Interlink all of your links pages. For an example of this take a look at links pages on my site (you can get to them by going here: http://websitepromotionbook.com/links.html). Notice, categories are repeated at bottom of each links page.