In simple terms a paid link is a o ne way inbound link purchased from another website.
There are two types been created by Google.
A. Advertising Links
B. Plain Text Links
Googles view on paid links.
Google says buying or selling links that pass PageRank is in violation of Google's webmaster guidelines and can negatively impact a site's ranking in search results.
However links purchased for the purpose of advertising has to follow either of the following two rules
Add rel=nofollow on those links.
Redirect the link to an intermediate page that is blocked using the robots.txt file.
Who/What is Google?
Google is a search engine that is used to find for something in the web.
They are not a non-profit governing body of the web.
They are a public limited company earning billions every year and growing.
Why am I saying all this?
Why am I saying all this?
Because its Googles algorithm that pays importance to links, not you and not me.
So here comes buying/selling links in to play. Why?
A. Because of the importance to links given by search engines.
B. This importance lets you rank higher.
C. High Rank = Traffic = Business = Profit
To make sense of it all: Here it goes, for a better business you have to rank better and to rank better you need better links, better links are not for free and hence you buy/sell them.
Why you can buy/sell links ignoring what Google says.
So links are a major factor for your website.
Search engine algorithms are based on links. Without them your site will never appear in the SERPs.
So buying/selling links is just like any other business.
Eg: For a profitable restaurant, you need a good chef(website), a good manager(thats you), a strong staff(content) and a good location(search engine = links).
Just like any other thing, buying or selling links is purely part and parcel of your business.
Googles lies and fear.
Google says it wants to make the web a better place.
And it creates a fear that buying and selling of links will eventually lead to low quality content and makes you feel unethical of it.
It creates a fear that you will be out of business if you buy/sell links and does it to many of them. (removing the website from index, ranking penalties etc..)
Instead it promotes its own advertising product.
Why you can buy/sell links.
Quality links are not available for FREE.
Because you have earned it. (selling links)
Without buying links you will not be able to rank higher for competitive SERP. (Agreed by almost most industry top guns Michael Gray, Jill Whalen to name a few)
