This is probably one of the most common SEO myth around today. Sites like warrior forum facilitate this sort of myth as people post things like “My site dropped 3 pages after I got these links” or “I changed THIS on my site and now its dropped down the SERPs”. There is a huge difference between temporary drop in the rankings vs your site actually being penalized by Google.
In most cases this is only a temporary drop in your rankings and most of the time your site will come back stronger than it was before. Hence the idea of creating a backlink, to improve your site’s rankings, not actually making them worse. The main problem and worries people have about this is because they have heard horror stories of link spammers being deindexed or “sandboxed” after they have got a few links, this is usually because their site was terrible in the first place and they were getting links from link farms or low quality spammy websites.
As long as you are promoting your site naturally and keeping your links clean and relevant there is a very low chance you will get penalized by Google for linking! Do not believe all of the stories you hear and work off personal experience rather than what people claim on forum threads.
There is a great way to see if you were actually penalized or punished by google and that is to check the Google webmasters tool for your website. Most of the time it will say something like “no crawl errors” and everything will be green and happy!
But if you have a problem with the site it will tell you:
As you can see Google does actually try to let you know if there are any problems with your site! Shocker I know! Alright that’s everything for today guys. And remember: Stay Optimized!