Is Creating A Private Community To Collaborate On Links A Good Idea?

No.

I’ve been asked this SEO question many times.

What you’re describing is a link exchange or link farm strategy, which is actually a violation of Google’s Webmaster Guidelines.

When you participate in a link exchange or a link farm, it usually involves arrangements with other sites to exchange links solely for the purpose of increasing backlink count and manipulating search engine rankings.

This practice is explicitly forbidden by Google’s Webmaster Guidelines which state: “Any links intended to manipulate PageRank or a site’s ranking in Google search results may be considered part of a link scheme.”

Google’s algorithms are advanced and increasingly sophisticated.

They not only look at the quantity of backlinks, but also at their quality and relevancy.

If the majority of your inbound links are from sites that have no relevance to your content or are from other low-quality websites, Google’s algorithms will likely interpret that as an effort to game the system and artificially boost your site’s authority.

Penalties

Penalties for such practices can come in two forms – algorithmic and manual. Algorithmic penalties happen automatically when Google’s algorithms detect suspicious, manipulative tactics. Manual penalties occur when a human reviewer at Google confirms that a site is in violation of one or more of Google’s guidelines.

Effects of these penalties could result in a significant drop in rankings, or worse, your site could be removed entirely from Google’s index. In the end, rather than achieving higher rankings and more traffic, the opposite effect could occur.

So, instead of resorting to such methods, it’s best to focus on implementing genuine SEO strategies like creating valuable, high-quality content that naturally attracts backlinks and optimizing your website for search engines and users to have overall better engagement and performance.