After the Penguin update many folks were saying that link building was dead forever. That’s only partially correct. Link building as we knew it is dead and that’s not such a bad thing. Paid link exchanges, like content farms, never added much to the end user experience and were due for an overhaul.
Post-Penguin link building is all about building legitimate networks the old fashioned way, in person. You still need links, you’re just going to have to work a lot harder to get them.