Back links are called the inbound links. It is also called inward links. It is a automatic belief that the number of back links determine the popularity of you website. The popularity and importance of your website is hugely dependant on this factor. And you can not ignore that. Search engines like Google gives much more importance to the websites which can gather a good number of back links which are relevant to your websites content. And automatically Google give more importance and position to the specific site comparing other sites position and importance and value. It will have a good search result. The search engines consider the number of quality inbound links when they count the popularity of a specific website to a keyword. Now your are happy that you have gathered a number of inbound links but the fact is your links now have to be relevant and interrelated and voluntary. So when you are exchanging links then remember that exchange it with some other quality links not with mass quantity of links and that can harm your purpose instead of do good for your websites high ranking. It is all about quality link building in SEO.
Now quality of inbound links is determined by the fact that how much they are relevant for your site considering their content. If they are related to your websites matter then they are really helpful to your sites popularity. But on the contrary if you take unrelated and irrelevant back links which have no connection with the content of your site then this will be counted as the drawback of the relevancy of your site. So unrelated content is not desired. The higher the relevance of inbound links is the greater their quality.
The idea behind including back links as part of the page rank algorithm is that if a page is good, people will start linking to it. And the more back links a page has the better. But practically it is not like this. The reason is you can not always believe your content to be good and people will naturally link you. If content is good and relevant then it very good for the prospect of your site. You can get a lot of quality back links from sites with similar subject, and these are the most valuable kind of back links, especially if the anchor text contains your keywords, but without your earnest effort you can not be satisfied and guaranteed that you will get the best for your website. So, you will have to resort to other ways of acquiring quality back links as described next.
There are lots of ways to building back links for your website. Directory submission, posting in forums, blogs and article directories are some of the options of acceptable ways of quality link building. The unacceptable ways of link building is inter-linking (linking from one site to another site, which is owned by the same owner or exists mainly for the purpose to be a link farm), linking to spam sites or sites that host any kind of illegal content, purchasing links in bulk, linking to link farms, etc.
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