A link wheel is a collection of web 2.0 sites that you create. Link wheels can range in size from a small handful to several dozen, and each site has relevant content to either your main website or blog, or to a specific page you’re trying to promote within your main site. Basically a link wheel is constructed to increase your Return on Investment by improving your search engine rankings. The link wheel may have any number of Web 2.0 properties but at least 5-7 properties are necessary to create an effective link wheel which looks natural to search engines like Google.
Process to make a Link Wheel:
First you want to sign up to a several web 2.0 sites. These are sites that allow you to write articles for them. Web 2.0 sites like Ezine articles, Hub Pages, Squidoo Lens, Blogger.com.. etc.
Create a template article. Each site has a post that is original and not copied from another.
Now go to the sites you’ve signed up at and post a new article per site. Make sure that each post has at least one link pointing you’re your main site and one link goes to one of your other link wheel sites.
After create the posts, ping each site to notify Google and other search engines that you have new content, which will help get them indexed faster. Once that’s finished you’re done and your link wheel is created.