Yes, that is very true. The more sites that link to yours, the higher your rankings. At least that is one of the major criterion for Google. I am still disappointed with our Google ranking, so I am far from an expert. However, I have done some research on the issue.
I think that Google also looks at the ranking of the pages that contain your links, so the higher they are rated the more influence they have on your rank.
Also important is your keyword saturation. I think Google looks more at the content of your web page than it does at the "meta-tags" that are coded in every page. However, it is difficult to get a decent keyword saturation without making your page read like the dictionary.
If you find something that works, let me know. We have tried many things and our rank hasn't really improved much over the past couple of years.
Best,
Robert A. Franco
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