I know this post is many years old now, but just in case anyone comes across this and worries, here are a few of my more notable experiences that me and my spots have been through. For some reference, I have many Fordyce spots, all of which are located on the underside of the shaft, and some form clusters which make them appear as a single large one. It was on my eighteenth birthday that I first had sex, and I was nervous as hell (most people would be but the prominent spots added extra stress). I wanted to make sure the girl didn't see the bumps, so I planned it that she would only see the spot-free topside of my penis. I turned to put on a condom, but before I could even unwrap it, she took it from me, tossed it aside and proceeded to give me a BJ. I freaked when she first grabbed my shaft, because she was staring right at the lumps, but she carried on anyway and even licked my entire member (sorry for the details but I feel it's important for getting across how little she cared). She was a year older than me and, having had two previous sexual partners, was more experienced. Afterwards, I asked her (having established she wasn't coy about such things) if the spots were a bother. She said that both of her previous boyfriends had them and she was used to them. Fourteen years on, I have had several sexual encounters: plenty of one night stands, two girlfriends and a current/would-literally-kill-to-be-with-this-woman-forever wife. Almost all of them had seen them before. Of those that hadn't, three were still willing to have sex with me, yet only one of these three (who went on the be one of my GF's) was comfortable giving a BJ and having sex without a condom, while the other two were still clearly (and wrongly) concerned that they might catch them, even after much discussion and providing research to the contrary. I did have four bad experiences with theses spots, two of which occurred when I was twenty. One was from a girl who had already had sex before (not sure how many times). She pointed and said "what are those: eww, gross, get that thing away from me". The other girl was a virgin, who turned me down because she was positive I had an STD, no matter how hard I tried convincing her otherwise (this bugged me for ages because the opportunity to sleep with a virgin never arose again). The third negative experience came when I was twenty-seven. I was taken home by a forty+-year old single mother. By now, I thought all women would have had some experience with these spots, so imagine my surprise when she said "oh my god, have you got herpes?; my surprise was doubled by the fact that she could mistake Fordyce spots for herpes when they don't look remotely similar. Anyway, this woman told me to get lost, and I then went through a (near as makes not difference) year long dry spell. This spell was ended by a twenty-seven-year-old woman, who also happened to be the fourth person to say "I'm not touching that thing". We had met for the first time and had plied each other with copious amounts of alcohol (we both knew we wanted it, we were just buying insurance) and I took her back to my flat, where I lived alone. At this stage in my life, I no longer felt the need to hide the spots, so I came right out and showed them to her. She was appalled and wanted to go home, but it was raining and she had no money left for a taxi, and after she had ridiculed my life long friend, I didn't feel like coughing up for one. I let her crash on my sofa but she said she wanted to check her e-mails before going to sleep, so I let her use my laptop. I woke up the next morning, expecting for her to have left, but she was still there, wide awake. She hadn't bothered to sleep, and instead used my laptop to research Fordyce spots. She apologised, and I said not to worry, because it wasn't the first time it had happened and it probably wouldn't be the last. I was wrong, though: a little more than two years later, this woman, who found the spots unbearable to look at, is now my wife, and she has no problem touching the spots with any part of her body.
Sorry for the lengthy post (which probably won't get read) but I wanted to lay down the gamut of my up and down sex life for two groups of people, the first being those in the same situation as the person I am replying to: those who remain virgins for a long time (sometimes life) because they are worried how someone might react. I am here to tell the truth and say yes: it absolutely happens; people do laugh or freak out at them, but they will likely be in the minority...and really...what's worse...people responding negatively to your penis/vagina through ignorance? Or completely passing up on a FUNdamental life process and never forming a bond of love. The second group of people I am (probably pointlessly) writing for, are those who don't have the spots but encounter those that do. I am fairly confident that if the first person I had slept with had taken the "that's icky" approach, it would have shattered my self-esteem and I could have easily become a lifelong virgin, which (and it makes me sad to think that this may have actually happened to people) would have resulted in me never meeting my wife, who I now couldn't bear to be without. So, to those who are fortunate enough to not have the spots, please react with level-headed understanding and kindness, because you never know, you might be the other persons first time; a time in which they have finally mustered the courage to present something which they believe to be a secret embarrassment, and not just that, but an embarrassment which they have selected YOU to be the first they reveal their secret to: should that not be an honour? an indication of their love and trust in you. YOU could be the one to in-still a courage which helps them lead a life where their most intimate physical area is no longer a frequent weight on their mind, and this conviction, in which they now understand their is nothing to worry about, could (as has been the case with me) make it easy to brush aside any insensitive comment and help them forget the cruel people who spoke them.
TL;DR The spots are common. If you have them, some people may react negatively to your penis/vagina, but they will be a minority, so it's no worth worrying to the point that you never have sex. If you don't have the spots, they are harmless, so if you meet someone who has them, please be sensitive, because how you react (to something of no concern) could affect someone for life...positively or negatively...it's (literally) in your hands.