We previously covered how linking your competition in blog posts is beneficial for both your reputation and your traffic. Essentially, this tactic is part of the larger viral strategy of linkbaiting, a method that's used to increase both traffic and search engine ranking. Jim Boykin, however, recently pointed out that being a Linkbaiter is only part of the SEO/SEM strategy. One has to be a Link Ninja as well.

The tenets of Linkbaiting are simple. Writing for the Yahoo Publishing Network, Ran Fishkin explains:

Linkbait can be nearly anything from a simple photo or “Top 10″ list to an interactive web-based application, or an entirely new business. [...] Generally, linkbait content fits the following rules:

Intended to target widely-read online portals (Digg, Fark, Yahoo! Site of the Day, Boing Boing)

Fits criteria for being viral-worthy and link-worthy (creates a discussion, sparks controversy, provides something revolutionary or is exciting/interesting to viewers)

Easy to link to, email, blog about, excerpt and share

Timely, topical and useful

An successful Linkbaiter, then, will get their material linked in the content of various other sites and blogs. Jim Boykin, however, points out that focused and precise link building is also necessary to secure high traffic and search engine rankings. As he explains:

A Link Ninja can get focused link text. A link baiter is at the mercy of the person who links.
[...]
A Link Ninja can also get a site into the neighborhood that it needs to be in. A link Baiter often gets links from tech sites and blogs….but often not from the sites in the neighborhood.

A Link Ninja can have some control over co-citation (some day I’ll talk more about this).

A Link Ninja can get on older trusted pages from authority sites [...] A Link Baiter often gets links [...] not from the sites in the neighborhood.

A Link Ninja can control what pages get the link [...] A link Baiter gets a link to a great content page mostly….but it’s not usually the page the site owner really wants to rank for anything.

Sound advice for any e-commerce portal, Boykin's point underlines an important feature of Linkbaiting: it is mostly a blog phenomenon. If your blog is what you are trying to promote, Linkbaiting will very likely be sufficient--especially since older, authority (non-blog) sites rarely link blogs. In essence, a blog isn't a website. I can, however, be used as a a marketing tool itself. If you only have the resources or knowledge to pursue only one of the two strategies, then, it would probably be best to establish a blog and pursue the Linkbaiting option.

Further Reading
What is Linkbait? @ ProBlogger (great list of links here).
What is Linkbait? @ Modern LIfe Rubbish.
2007 Guide to Linkbaiting @ Search Engine Land.