What can you say about RSS Feed? Does it helps generate traffic? How?

In itself, an RSS feeds does not do much, but the usage can. First, your users can use them, and it thus can bring more visits to your site since it's one more way to follow your site's content.

Then, RSS feeds can be submitted in many different type of sites (news, directories etc ...) and this too can end up making a great difference seowise since it usually results in more backlinks (and deep ones).

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Well add them to feedburner and you know how the users react to your contents, isn't that great?