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I created more then 500 backlinks for my site a week ago and till yet i i didn't see any improvement in my site..So tell me how much time will backlinks take to show their effect?
It depends on what type of backlinks you have. If you have spammy backlinks it might not show ever and Google will penalize you for that. Speaking from my short experience.
My understanding of backlinks is the link of your website that you placed on another website. For example you have posted a comment on a blog that will include your backlink in the signature. If a reader of the blog gets interested on your comment and he clicks on your backlink then that is traffic for your website. If you have lots of backlink and no traffic then maybe you are posting on the wrong website.