jimbeetle - 3:41 pm on Jan 10, 2013 (gmt 0)
Do not do a link exchange! Google flat out bans them in their SEO guidelines
No it doesn't. It mentions that "Excessive link exchanging" can negatively impact a site's ranking in search results. And Google can't flat out ban anything.
A well thought out exchange such as above is perfectly fine.
For instance, a pet store and a dog walker have a real reason to link to each other (same target audience, relevant products/services).
And why would this not be a link exchange?