Penalizing websites for buying links(Paid Links and Directories Links)

Many people have a lot of confusion about Google's policy of penalizing websites for buying links. This is aided by the fact that Google does not really have a clear policy on paid links. Should you avoid paying for links from website directories?

From what employees of Google have indicated, human-edited website directories are generally okay with Google because there is editorial review. The directory is not considered to be selling the link, just the review and the listing service.

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