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Look at the post above me. The link to Babelog Gallery Trades. Notice it says the .php?t=742265?
Well long ago we all use to use link trading scripts that create links like that. So instead of linking directly to my site (KlubKelli.com) it would instead be like yourdomain.com/links.php?8fdsadsaf?klubkelli.com
This was fine and all but what we learned is, trading links really doesn't get you much traffic. The average link trade might bring you 3 or even 5 whole clicks a month. But for those who didn't use link trading scripts, found that they had an improved listing at google.
It became known as link populairty. In short, the more sites that list you, the better. Well actually that's not true, it also has to do with quality sites. The ranking goes like this ... PR0 to PR10. PR0 = crap (not even on the radar) and PR10 is ... well the best you can get.
So if my site has a link to it on 5 PR10 sites, I must be really important and my link popularity goes up. Nobody knows the exact formula but in short, link popularity is important for one reason, getting you better listings on google.
So ya, that is the main difference between a hard link and link trades.
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