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| Why do we need inbound links? |
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Even before Google came on the scene, link popularity (linkpop) was being used by one or two search engines as part of their algorithm when determining the rankings for any given searchterm. Then when Google arrived with their link-based PageRank, link popularity took off and became an absolute essential ingredient in achieving top rankings.
The idea behind linkpop is that the more pages that link to a page, the more important the page is and it, therefore, deserves a higher ranking than it would otherwise have.
Some engines simply counted the number of links coming into a page (inbound links), but Google took the idea a step further. Each inbound link comes comes from a page which itself has inbound links. The more inbound links on the linking page, the more important that page is and, therefore, the more important the link to our page is. So Google gives more weight to inbound links from important pages that it does to inbound links from lesser pages. They call the idea "PageRank", and you can learn all about in this PageRank article.
Google is the world's number one search engine, and currently provides the results for around 80% of all the searches done in the world. Because of that, it is vitally important for any website that relies on search engine traffic to do well in Google. Doing well in Google means making the site 'important' in Google's eyes and, to do that, the site must have good inbound links - as many of them as possible, and preferably from important pages (pages with medium to high PageRank values).
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