Are you careful about linking back to sites that link to you?

[Charlessipe]

Suppose that a trusted website added you to their recommended links page. Do you worry that linking back to them from a page on your site will diminish the value of the original link?

[Matt-Williamson]

I think you need to be careful with reciprocal linking between websites, however a few links that are pointing at other websites that are an authority within your area is a good thing  as it makes your link profile more natural. However this doesn't need to be from a recommended links page on your site - I have always been a bit wary of this practice as I think this sort of page can look unnatural in my opinion - especially when you start getting lots of site that have a similar page and are linking back to you!

In regards to putting a link at some appropriate place on your website - so rather than having a recommended page I might already have some page on my site where it would be appropriate have a link to this site. I have done something like this on several sites that I have worked on and I don't think it has had any impact on the value of the original link. If you start exchanging lots of links with other sites then you could have a problem.

[AlanMosley]

Another good answer from Matt.

if you are talking about one or 2 links then dont worry, do what is good for your users, if it is somthing that is on mass trying to trick the search engines, then i would think again.

[Charlessipe]

Thanks for the input. In one Mozinar, Rand suggests that it is good practice to link to sites that link to you (naturally) because it helps Google index the page that linked to you which is not something I've heard before but makes pretty good sense.