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Originally Posted by AdultNex
Good tip to doing this is doing a A > C, B > A recip linking structure.
e.g. Site A links to Site C, and Site B links to Site A. I own Site A, Site B, and the other person owns Site C.
This way, your optimized site (being Site C) gets the 1-way anchor link.
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Google's algo now looks for "unusual" linking structures in an attempt to pick out links designed essentially for building ranking/PR. I'm not certain, but this linking structure, if over-used, will raise a red flag with Google.
I've found that it's best to set up incoming/outgoing links as a navigation menu. ie. set up the links both physically and visually as any site navigation menu would. Then plug in a few sites into the nav that have no outgoing links - these will be the ones you want ranked high in SERPs. The "feeder" pages and sites should enjoy a share of the PR spread among them but the "target" pages will get it all w/o giving any back out.
So far, works fairly well for me.