Many people are aware of the importance of inbound links. Basically the more links to your website, the better your website will perform in the search engine rankings. For example, if you compare your website to your competition's webiste, and everything on the page (metatags and keywords) are the same, then the website with the most inbound links would rank higher.
This concept is referred to as link popularity. And just like a popularity contest, the more popular you are the more attention you get.
What most people are not aware of is that some websites make for better link partners than others. In fact Google has created a system to measure the link value of any webpage. This is called Pagerank.