Avoid "Bad Neighborhoods". Focus on One-Way or Non-Reciprocal Links
Linking to "Bad Neighborhoods" should be avoided at all costs. Websites which are penalized by search engines, websites having spammy link pages, link-farm network pages or websites deploying dubious black-hat techniques are considered "Bad Neighborhoods". Linking to such sites can earn penalties for your website too. Excessive linking to "Bad Neighborhoods" websites can trigger a penalty filter for your website and sink all your link building investments and promotional efforts.
Even an expert eye can sometimes not detect or identify a bad neighborhood. Already-penalized websites and websites deploying black-hat SEO techniques are not easy to identify. Unless each site is very carefully evaluated, linking to another website through exchanging links exposes you to the possibility of your website unknowingly linking to bad neighborhoods. Even if you link to, what you consider a "safe-looking" web page, it can later turn into a spammy page full of links or become part of a penalized website. Links to such bad neighborhoods can be disastrous.
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