Will I be penalized for this:

Having my link on link farms (exchanging links with other sites through link exchange services like linkmarket).

 

Yes, you could get penalized for this.

 

Definitely you will be penalized if you have not credible high value backlinks to justify your good standing.

 

Not exactly "penalized". Google won't nessecarily knock you down the rankings for it, on the principle that it's not your fault who links to you. What may happen though, is that those links may not be counted when ranking you.

 

What about the effect of those links being on my site.

 

Having a lot of irrelevant or spam links on your site could get you penalised by Google and/or lower the weight of outgoing links from your site.

 

Thank you for all the replies.

 

Definitely take those links off YOUR site. And I personally woulndn't want to be linked to from a link farm - why take the risk for such meager results?

 

Yeah I just took them off.

 

no you wont be penalized. its impossible. u "may" be penalized if you link to the bad guys not if the bad guys link to you.

 

I meant both of us linking to one another.

 

If you have links coming from your site you could be penalized. BUT, if the links are coming in to your site then the worst that could happen is that Google will just discount the links. From their perspective, you can't control who links to you, but you can control who you link to.

I hope this helped.

Cheers!

 

It did. Thank you.