Effective Link Building Tips

Submit your website to web directories, both free and paid.
Register your website with the Better Business Bureau.
Submit your links to your local government resources and the local library.
Submit your link to the local chamber of commerce.
Submit press releases to PR sites giving the latest information with prominent links that lead back to your website.
Syndicate articles to article directories again making sure that your link is displayed.
Post in forums and blogs making sure that your link is present in the resource box.
Post in social networking websites, using viral videos perhaps to drive targeted traffic and to build links.
Post in Yahoo Answers, Google Groups and other such sites.
Another of the link building tips is to use social bookmarking websites such as Digg or Del.icio.us to promote your website and build inbound links.
Create and distribute free e-books, newsletters, ezines and articles that can be reproduced as long as your name and the link to your website stay intact.
Use Pay Per Click campaigns.
Build links by exchanging links with other businesses that sell products complimentary to your products.
Use affiliate marketing to build more links than you ever imagined possible.
Exchange links with your business partners if any.
Advertise in online classifieds with links that lead back to your website.
Create a profile of your product/firm in Wikipedia, squidoo etc.
Write testimonials for other businesses that you have solicited and have been well pleased with. Most often they will display your name and keep a link that will lead back to your website.
Sponsor some cause that you believe in, not only will you be doing a service to the community but most often charities display links of their sponsors prominently on their webpages. 
Offer freebies such as originally designed templates, icons, with links leading back to your website.