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Here’s an interesting take from GrayWolf (Michael Gray) on the whole paid links debate as interviewed on the LinkJuicy blog. Google has recently been cracking down on websites that are selling paid links, take for example, directory sites. If you are selling links, it’s like you’re renting out space on your lawn to put up advertising signs. Ever drive by a house where you see painters or landscapers put up their signs to advertise their businesses? Paid links are like those “signs” on the internet.

The hypothesis is that Google doesn’t want you to compete with them for selling links since they are essentially selling links through the AdWords (the contextual part) and AdSense programs (what are the AdSense ad link units if not paid links?). You can essentially get a better price for paid links on your site than if you are showing AdSense. So by frowning upon paid links, Google may be trying to steer webmasters towards using AdSense instead.

Here’s the excerpt which I would like to highlight:

“Many people build [websites] as a hobby and when something like AdSense comes along and gives them the ability to go from costing them time and money, to making $200-$300 a month profit, just like the guy selling his house before, they are happy. Of course they are also ignorant to it’s true value. What if the guy running the hobby website finally figures out it’s true value, and instead of taking the AdSense chump change, he starts selling text link advertisements and brings in $2,000 to $3,000 a month? That extra money would probably really make a difference in his life, and by the way those numbers are real for more than one website I manage. It’s in Google’s best interests to keep you in the dark as to the real value your website has, as long as they can keep charging the advertisers top dollar, they will sacrifice a few nickels and dimes to you via AdSense.“

What do you think?

The debate continues…

Technorati Tags: paid links, Google, selling links

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