What is the use of creating backlinks? How will it help in terms of SEO? I aM spending hours a day submitting my site to free web directories. Will this help in terms of SEO?

it's perhaps the most useful thing in SEO.

Sure, adding your site to directories will help.

Originally Posted by kenang82

What is the use of creating backlinks? How will it help in terms of SEO? I aM spending hours a day submitting my site to free web directories. Will this help in terms of SEO?

But what mechanisms make backlinks useful?

Well "PageRank" is a measure of how many links you have and how many each of them have. Links show popularity, visibility, and, in theory, quality.

Originally Posted by kenang82

What is the use of creating backlinks? How will it help in terms of SEO?

Backlinks are useful because they will get SE crawlers to visit your site.
Some backlinks are useful because the anchor text will assist in the SERP for that phrase or the individual words included in the phrase.

Some backlinks are extremely valuable, because real people who are interested in buying your products click on them and arrive at your page, credit card at the ready.

Originally Posted by kenang82

I aM spending hours a day submitting my site to free web directories. Will this help in terms of SEO?

Probably not at all or at best very slightly.

Don't believe all this "Submit to my search engine friendly directory" garbage.

Originally Posted by kenang82

What is the use of creating backlinks? How will it help in terms of SEO? I aM spending hours a day submitting my site to free web directories. Will this help in terms of SEO?

aside for SE's purposes, backlinks is a way to promote services and products through the help of your related partners or a site that had your link.

it'll help you on your traffic and rankings as you can use your targeted keywords as your anchor text and it'll help you rank well on such keywords...the more site linking to you with such keywords the better the rankings you might get...

IBLs are helpful to gain PR and good positions in SERPs

Will the partner sites' quality affect page rank?

Originally Posted by kenang82

Will the partner sites' quality affect page rank?

Yes. the higher the PR of the site linking to you the better.
Link Relevancy is also considered when SEs check IBLs, so link only to relavant pages.

How if I accidentally submit my site to directory with low pagerank? will it negatively affect my site?

Originally Posted by kenang82

How if I accidentally submit my site to directory with low pagerank? will it negatively affect my site?

No, It wont. It's not a bad thing to link to have links from pages with low PR, as long as it's a relevant one. You can think of them as "investments" (lol). Directories usually gain PR fast.

Originally Posted by kenang82

How if I accidentally submit my site to directory with low pagerank? will it negatively affect my site?

no as long as it is not penalized by search engines, just always be in appropriate category

Back links (also backlinks or inbound links) are links found in other websites that when licked will direct the visitor to your site.Backlinks are important because many search engines (especially Google) look at the number and quality of back links to your site to determine page ranking.

http://ezinearticles.com/?Backlinks-...Them&id=536678

Originally Posted by kenang82

What is the use of creating backlinks? How will it help in terms of SEO? I aM spending hours a day submitting my site to free web directories. Will this help in terms of SEO?