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The images on your page should be relevant to your pages content, so describe them with an alt tag naturally will add relevance. The length is not important, but I would not stuff they will a long list of keywords.

Are they simular sites?

if yes then yes I would consolidate, 301 all links to the one site and stop splitting your efforts.

If the sites are not relevant to each other then no.

I wont disagree, links can be good, but links that you can just go out and get are usually not worth it.
Quality and unique content described by Egol is what you need.

Click data will eventually get you ranking better and better for the keywords that your content deserves not necessarily the ones you wont to rank for. Search engines look at the activities of users, they see what keywords they enter and what results they click on, did the user come back and click on a different result, what was the last result they clicked on. From all this click data they can start to see what results served the users needs for each keyword and rank you accordingly.

I create many websites for people, from their content and purpose I can just tell if they are going to successful. I make sure the site crawls perfectly with no errors no redirects and mess, I make sure the content is described to the search engine well using structured data, its the clients job to supply good content. If that content is good. I will see over the next few months it continually rise in the rankings.

click data will eventually overrule everything, of your site does not satisfy the users needs the search engine will eventually know this no matter how many links you have, and visa versa

Links don't have to be relevant, its not to say that non-relevant links don't carry any link juice at all, but it is better to have relevant ones.

But I doubt that this guys links have any benefit at all. And if he is using some black hat schema to get these links, then one day that link network maybe or already discovered and you may get a penalty.
This happened in the past where a large number of link networks that sold links were put out of business overnight.

Get him to remove all the links and get rid of him.

I do now see where he did also claim visa versa that using originals wont help either.

why would matt or rand mention it? they don't work for google they will not know everything.

But he also said to the best of his knowledge, at that time, and that in the future that may change and it was 2 years ago. So I would still try to get original images if you can.

To the point Egol

I am not sure how google see the relevance, but getting a link from a relevant business that is not in the business of giving out links is a good link.

There is one more and very important point here. Can almost anyone get a link here? if so, then I would say no.

Patrick is on the money here,

when you say you are getting links, did you go out and get them or are they natural.

I don't think google is interested in 99% of any link you can go out and get yourself.

And those that appear naturally are also 99% crap.

You can get good sites to link to you but it is not easy, and you may get good sites to link to you naturally over time. IMO you are better off spending time in making sure your sites crawls perfectly, making sure you have good content, and describing your site to google using structured data.
If your site is a good result for your keywords click data alone can do wonders for ranking

But they may reward you for unique images.

sometimes it is better to get a new domain and start again. And do not 301 old domain to your new one.
There are things to consider before doing so, but it sounds like to me your links are crappy,, and who knows what else they have done.

That is the shortest answer i have ever seen Ryan give.

I can agree on all of it

goodness knows why they do it

But place this javascript in the page, and it will reload the page in the parent window, in short it will redirect to your page

if(top.location.href!= window.location.href){
window.parent.location.href = "yourURL" 
}

That will piss them off

I remember this forum was full of people whinging about being out ranked by spammy websites with cheap links.
Now I see people with spammy websites and cheap links whinging they have lost rankings.
Those who were the wingers are now the winners and those that were winning are now whinging.
Every dog has his day
There was a time where you could beat the system, those days have long gone, for long term results its not a matter of beating the search engines, but making sure you have not made any mistakes, that you are free from errors, you have prefect crawlability, good content and quality links.

You have a lot of canonical issues.

one that will certainly be giivng you problenms is this

The page with URL "http://www.ilihost.cl/" can also be accessed by using URL "http://www.ilihost.cl/index.php" and  "http://ilihost.cl/" and "http://ilihost.cl/index.php"

Thats your home page rank split in 4.

Do a 301 redirect to either www or non www,

You should also 301 redirect to get rid of index.php.

Then you need to go thought your site and make sure you have no links point to the wrong version of the home page.

if you decide on http://www.ilihost.cl/ then keep to it, make sure all internal links point to it.

This alone will help heaps, because of how link juice flows in a site from the home page and back is very importannt, in your site the link juice does not get back to http://www.ilihost.cl/ it comes back to http://www.ilihost.cl/index.php

please read this page for an explaination http://perthseocompany.com.au/seo/tutorials/a-simple-explanation-of-pagerank

You have overr 500 broken links, each one of these is sending link juice to nowhere. It looks like the same 4 broken links on every page,

Fix these things and you should rank better.

no, shorten them to 65, to fit all search engines
http://thatsit.com.au/seo/reports/violation/the-title-is-too-long

Having many keywords means your are diluting them,

the title Keyword gives all its credit to one keyword, but Keyword1 Keyword2 only gives half the credit to each.

Your parents can leave you all their money, but if you have a brother you will only get half.

All links consume link juice even nofollow links.
What happens to the link juice is the question, does href="#" just flow back to the same page, first thoughts are yes, but then if that is the case, you would be able to manipulate how much link juice flows out of other links but adding more. so I think they may waste link juice. JavaScript links use link juice and there is no guarantee that Google is able to pass that link juice on.

A lot of CMS use this type of links href="#" on a A tag then use the A tag for some other reason, such as a button to fire JavaScript. I believe that if you want a button use a button, if you want a JavaScript link then attach the event to a SPAN or DIV, use A tags only for real links and be sure you know what is happening to your link juice.

I would agree with you. You have to ask yourself why do we have a blog. i find many people have one but dont know how or if it is helping them. Why have one on a different domain? To give links to your main site? Then why reciprocal link back to it? If your blog can attract a handfull of links under the same domain, it would out-weigh any links from your own blog on a seperate domain. (hope that makes sense)

I think having the blog in a subfolder or subdomain is the best use, you stand to gain links and traffic and you can use these pages to funnel PR to your home and landing pages, see link
http://thatsit.com.au/seo/tutorials/a-simple-explanation-of-pagerank

I wont disagree, links can be good, but links that you can just go out and get are usually not worth it.
Quality and unique content described by Egol is what you need.

Click data will eventually get you ranking better and better for the keywords that your content deserves not necessarily the ones you wont to rank for. Search engines look at the activities of users, they see what keywords they enter and what results they click on, did the user come back and click on a different result, what was the last result they clicked on. From all this click data they can start to see what results served the users needs for each keyword and rank you accordingly.

I create many websites for people, from their content and purpose I can just tell if they are going to successful. I make sure the site crawls perfectly with no errors no redirects and mess, I make sure the content is described to the search engine well using structured data, its the clients job to supply good content. If that content is good. I will see over the next few months it continually rise in the rankings.

click data will eventually overrule everything, of your site does not satisfy the users needs the search engine will eventually know this no matter how many links you have, and visa versa

A blog can help, but often does not. you need to have a blog that people want top link to, it much be relevant and link back to your landing pages

make sure content is relevant, try to attract links.

dont post the same artciles anywhere else, this will lead to duplicate content.

I had a look at a few pages and i am not convinved that they have unique content. these 2 pages for example are not very unique, they both have the same text,

/catalog/product/view/id/1003/s/qus993/category/58/

/catalog/product/view/id/3387/s/wr54-1236c/category/58/

I can’t tell you why your rankings have dropped maybe Google has found a load of doggy links and dismissed them, I don’t know.
But I can tell you have a lot of problems in your site that are not helping your rankings.

You also have over 3800 un-necessary redirects, each one leaking link juice. I say un-necessary because the links are internal links and you could point then at the correct destination and avoid the redirect and the leak. An example.
The link to " /plastic-storage-specials.html" has resulted in HTTP redirection to " /plastic-storage-specials".

You have many pages with contains a large amount of script code.
http://thatsit.com.au/seo/reports/violation/the-page-contains-a-large-amount-of-script-code

You have 25 css pages  excluded by robots.txt, it is my belief that search engines do not like this, you could be hiding content with css, it does not help them trust your site.

You have many pages with duplicate titles or description .

There are various other problems but these look like your main ones