If you like to fish then you understand the importance of bait. You take something that fish like, put it on the end of a hook, and throw your line in the water. When they bite, you snag them and reel them in. Link bait works much the same way.
What you do is create some kind of content that others will find attractive to link to. You are “baiting” their links. But not just any link bait will do. The No. 1 rule for link bait is to make it relevant.
You want the people who link to your site to be people within your niche. They will be people who own websites or blogs about your topic. Your link bait will attract their links and that translates into a higher PageRank and eventually higher rankings for you. Sounds simple, right?
Well, it is simple enough to understand. The hard part is creating the content. You have to predict what people will like, which requires having some understanding of human nature and what people within your industry want. If you can nail that down, you can create some awesome link bait.