What is Link Wheel?
Link wheel is a very simple concept, in this you have to create a group of pages/profiles each pointing with a dofollow link to your main site that you want to rank in SERPs also each of that microsite should be linked to each other randomly.
This can be better understand by observing bellow images. The following image is an example of a Simple Link Wheel.
In above Simple link wheel you can observe that five microsites namely blogger, hubpages, wordpress, Squidoo, weebly are arranged in acycle so that each of them passes linkjuice to next microsite in the cycle and finally all microsites passes their complete juice to your main money site.
I will not suggest you to follow above link wheel as it is leaving very obvious footprint.Rather than following this simple link wheel we will try to pour some randomness into it as shown in the following figure.
This looks less obvious and its effective too, It can be managed easily even you add lot of pages and profiles into your link wheel.
How to make an effective link wheel?
An effective link wheel can be created by following the bellow simple tips,
Start with Small wheel: Initially start your wheel with about 4-5 webpages/profiles. Grow your wheel gradually in the random manner as shown in just above image.
Maintain a systematic blueprint: From starting of your link wheel make a systematic blueprint of your link wheel, when your linkwheel will grow really larger this bluprint will help you to keep track of properties in the link wheel. Also it will facilate finding the possible loop holes in the wheel to repair them.
Add some high PR Links : Add some high pr links and profiles to your link wheel, there are many high pr sites that allow dofollow links from profile page after registering. Use this pages in your link wheel it will give more linkjuice to your linkwheel.
Add Edu/Gov profiles: Add some Edu/Gov profiles to your link wheel, they holds alot of linkjuice and trust among search engines. Some Edu/Gov sites allows dofollow links from their user profile page after registration, use them. Edu link wheel is best linkbuilding srategy.
Keep links dofollow: Offcourse this is obvious that keep all the links in your wheel dofollow.
Anchor text: Dont use same anchor text in each link wheel property, show some variations and offcourse use your keywords in anchor texts.
Check out this How to create effective keyword rich anchor text.
Content of blogs: As shown in above images your link wheel will also have some blogs from diffrent platforms such as blogger, wordpress etc. In each of this blogs you have to write one unique post under your main site niche and optimise that post for SEO and make sure that the blog get indexed in search engine preferably google (Atleast write 70% unique post). Do proper On page SEO for the posts you publish in your link wheel,this includes keywords optimisation, Image optimisation and Heading tags optimisation.
Multiple cycles: So basically you have to create multiple linkwheels connected to each other and each of it's property linked to your main site.
After creating link wheel you will not get results quickly but this linkwheel will be owned by you and it will be totally under your control. This linkbuilding strategy is a permanant and it will going to help you in a long run to boost your site in the SERPs and will drive huge traffic to your site from search engines.