Can 'follow' rather than 'nofollow' links be damaging partner's SEO
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Hey guys and happy Monday!
We run a content rich website, 12+ years old, focused on travel in a specific region, and advertisers pay for banners/content etc alongside editorial.
We have never used 'nofollow' website links as they're no explicitly paid for by clients, but a partner has asked us to make all links to them 'nofollow' as they have stated the way we currently link is damaging their SEO.
Could this be true in any way? I'm only assuming it would adversely affect them if our website was peanalized by Google for 'selling links', which we're not.
Perhaps they're just keen to follow best practice for fear of being seen to be buying links.
FYI we now plan to change to more full use of 'nofollow', but I'm trying to work out what the client is refering to without seeming ill-informed on the subject!
Thank you for any advice

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As a best practice for paid ads, you should definitely follow Google's stated best practice for links: https://support.google.com/webmasters/answer/96569?hl=en
This clearly states that nofollow should be used for advertising relationships. In your specific case it may be that your site isn't presenting ads in a way that would automatically be flagged but it is a big gamble for little reward to assume they won't catch this.Your confusion is warranted though, as more links from a reputable source around relevant keywords should be something that would help them. However, if the links/keywords and site show patterns of a link scheme, then a potential penalty could be incurred - see Google's statement on this:https://support.google.com/webmasters/answer/66356?hl=en&visit_id=1-636413527986263403-257027443&rd=1
TL;DR - go with nofollow for advertising links.
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They are just trying to follow "best practices", but you're one "dollow" link to their website is not hurting their SEO. Either your link is actually helping them a little bit, or it is being ignored by Google and has no factor in their rankings.
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