A link pyramid is precisely what it sounds like.
At the top of the pyramid is your main money site and below it are layers of tiered links.
Tier 3 links point to tier 2 sites. Those tier 2 sites then link to tier 1 sites and the tier 1 sites link back to your main money site forming a pyramid structure.
Sending Link Juice
The pyramid structure holds a lot of ranking power due to the way it sends link juice upstream to your main money site.
The reason we use a pyramid structure through tiered linking is remove the possibility of a link velocity penalty.
If you were to send all those links directly to your main money site then Google would see this as unnatural and penalise your site.
So, by using a tiered link system, sometimes called a “link push” you can send the same amount of link juice to your site without worrying about the speed at which you build those links.
It is also means you can take advantage of lower quality links that are easier and faster to build by integrating them into the lower tiers of your pyramid.
The great thing about building link pyramids is that you can sending relevant anchor text link juice to your site without risking an over optimization penalty.
In the deeper tiers, from tier 2 down, you can use much more EMK and EMK Variation keywords as anchors without having to worry about Penguin hitting your main site.
This means that even if you have a generic anchor or naked url anchor pointing to your site you can build tiered links to that linking page using keywords that are relevant to the phrase you want to rank for thus sending relevant keyword juice upstream through your generic or url link.
Play around with link pyramids and you will be astonished at how quickly your site starts to rise up the SERPs.
Next we look a way for increasing the power of these sites even more by interlinking sites within the pyramid.