If so, which are the best ones? I've been looking at Link Buddies--any good? I just launched my site a few weeks ago and am looking for some free promotion. Any advice would be appreciated!
In response to your question the answer is yes and no. Banner exchanges work if you are able to do them with a targeted group of websites that have something to do with your website's subject matter. Make sure you get a good banner designed. If you need some references PM me.