I have been asked this same question about 50 times this week so I am addressing it again. Is it bad to reciprocal link with other sites?
An SEO (search engine optimization) myth is that exchanging links is bad, or that it will hurt your credibility on huge engines such as Google.. This is not entirely true. What needs to be explained is this, When finding people that you want to give you a link to help increase your visibility you will often be asked for a link back. If the website is related to what you are doing or if they have a category with what you are doing then its ok. What you need to try to avoid is the link building farm programs out there with the promise of thousands of links over night. This will get Googles attention for sure. Not in a good way. It looks way to spammy, and if you think about the kind of links you are getting it really makes no sense. You will always have better conversion on sites that are the same topic as yours, not if your website is about fishing products and you are linked to a thousand casino sites...not related at all. This kind of linking may help you on some search engines, but each search engine is clamping down on any form of spam and this is definitely a form of spam.
So ask yourself before you give a link back, "Does this website compliment mine?" If you can answer that with no questions asked then you probably will not ever have a problem with reciprocal linking. Just make sure to not get caught up in the link farming. This will come back to haunt you!