The types of links differ based on the mode of use that they provide. The traffic is normally guided through these, on is the outbound link where the link takes the user to some other website from your website and the inbound link performs the exact opposite function. The user comes to your website through these link and the third type is the internal links where the user movers around the same website using the internal links. SEO services normally use the links where traffic gets directed to you.
So in other words, they rig other websites with outbound links which perform as inbound links to the website that is being targeted. The effective way to use the links is simple; have a lot of inbound links, keep the outbound links minimum and the internal links are not to be changed or maybe a bit to facilitate the user that is coming to your website.
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