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Whether you need more traffic or are trying to build link popularity link baiting should be a tactic that you put to use. It’s cenetered around creating content that is irresistable to link back to. A good example is holding free give-away contests. The latest groundbreaking news or viral humor is great as well. If you want to improve the amount of natural links that you are getting you need to remember that it’s not about the content that you nescesarily produce, but the way you present it. Disguising trash as treasure can be one of the most powerful ways to build a site from the ground up.
If you’re a developer of some kind: programmer, webmaster, etc. one of the best things that you can do is embed a link back to your homepage somewhere in your work as part of the branding or credits. Most people don’t mind providing a link back to you if you provide them with a discount of some sort. There needs to be incentive for you in doing so and if you are doing a paid project I would only invest in this if you were dealing with a big company that stood to become a real authority. Free widgets and software for sites should always be branded.
Link baiting is the latest buzz word in the SEO world and has come to be the preferred way to natural link building.
It means to create something that naturally attract back links for your web page by getting people to talk about it, discussing it on forums, blogging about i, posting it on del.icio.us/Furl/Digg/Shoutwire and linking to it from their sites. It is best way to increase traffic.