On a Cre8asite Forums post, a member says that he has about 185 emails asking to reciprocate links and wonders how to handle them, if at all.
I just wrote about Google Hell last week, and that was the first response to that particular question. Matt Cutts has some valuable information about link exchanges: there are penalties for spamming and too much is not good.
EGOL shares his personal experience and says that he does not pursue link exchanges:
I have never chased link exchanges and delete emails requesting them when they arrive. It is manipulation of the search results. Although it used to work the practice is rapidly becoming a waste of time.
But joedolson says that they're worth it, provided that it meets certain minimum criteria:
You need to look very closely at the site you'll be linking to and the _page_ which will be linking to you. There are some very basic questions you need to answer before considering any exchange:
1) Is the page linking to me a standard part of the site, or is it a directory page dedicated to reciprocal links? 2) What other links are on that page? Am I one of a few links out? Are there hundreds of them on the page? Are any of the links to questionable sites or site which I don't want to be associated with? 3) Is the page I'm linking TO one which I'd consider highly useful and relevant to my visitors?
A very good discussion continues at Cre8asite Forums.