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Is it really necessary to create reciprocal links with other websites to get to the top of search listings?

I have a new online business selling headbands (www.tinydragonfly.com). I keep reading that you need to do link swaps in order to get to the top of the search pages, but I don't want a link page on my website with tons of links....is this really the only way to get to the top of the search listings without paying mega bucks?

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