How Does Google Identify Which Links Are Paid?

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There are two types of links which
helps Google analyze the real worth of them and take steps to improve their
search algorithm responsible for presenting the best search results with
respect to the user query. These two types of links are – “Do Follow”
(which are mostly natural links and passes full seo value) and “No
Follow” (which are not natural in normal cases and do not pass any seo
value). Do follow backlinks or in simpler terms normal web links helps Google
to correctly identify which sources on the web are popular and relevant. This
is one of the criteria of Google for accurately judging the popular sources on
the web based on the number and quality of Do Follow links and ranks them
accordingly. Because of the high value of Do Follow backlinks, some webmasters
creep into the bad practice of selling links that pass seo value and this is
when Google takes manual action or applies penalty against the site by
decreasing the Page Rank of the site as well as its rankings. Here, the
question arises, how does Google identify which links on the site are paid and
which are non paid. 

Now, have a look at this video from
Matt Cutts, head of Google Webspam team where he explains about how does Google
identify which links are paid and which are non paid? 




Also See:- 

Why Paid Links Are a Violation of Google’s Guidelines
Google Disavow Links Tool
Google Reminds of Taking Action Against Sites That Sell Page Rank
How to Design Seo Friendly Web Page
Links from Article Marketing Sites
No Follow Vs Do Follow
Top Ways to Get Natural Backlinks
Link Baiting
Secret to Link Building
Google’s Take on SiteWide Backlinks