As the most powerful search engine, Google has the ability to act as the internet`s police and the rules are made by Google. On the other hand they is also the internet’s information keeper and the portal to the online world for the majority of users. With its frequently changing algorithms, Google’s search bots attempt to filter out the “quality” information from the ones that are “spam.” However, with the umpteen websites begin developed everyday, there are dozens of strategies to obtain SEO, thus higher traffic and sales, that may not be in line with Google’s ideals. As the Internet Watchdog of Greater Democracy, Google is adept in sniffing the scammers out. Instead of trying to alter their algorithms to outsmart the scammers, Google is now doling out punishments. For example, Google blogger Rand Fishkin has identified 70 websites, such as DirectoryDump.com, that appear to have been punished by Google search bots. For example, even if someone searches specifically for these domain names, they do not appear until the final SERPs of Google. The reason behind the search engine drama is Google's severely repressive actions against search marketing; the rulebook is a growing one and has created a contentious debate in the SEO and SEM circles.
 
To understand the drama with Google’s search bots, it is important to discuss links. For the search bots, links are the richest SEO food, so to speak. The more links a website has, the higher its search engine rankings; with the higher rankings, the website will appear first among its competitors in the search engine listings. That translates to more traffic, more online sales, higher ad rates, and more profit.

With the importance the Google search bots put on links, it was only natural that webmasters would create techniques to optimize their links for their website. These links point audiences towards search-relevant content or information, but some of these were also hoax links that were specifically designed to help their sites float to the topmost search results. In addition, another link issue was those that were “paid” or “sponsored.” These paid links frequently showed up in search results, and for Google users, this was very frustrating. Now that Google is cracking down on “scammer” links, critics are pointing out the fact that even Google has no ability to control its own links, and that its game rules can be hypocritical and vague.  

For the common web user, there does not exist much of a difference between a sponsored link and an advertisement. For example, many of us visit websites that have strange, un-related links on the bottom of the page. We may be viewing a technology website, but suddenly find links that take us to grocery or fashion couture websites. They are strange tangential links that do not relate with the subject matter and targeted audience of the website. However, the reason these links exist is strictly to increase their rankings and popularity with the search engine bots; for example, if someone is searching for fashion couture, then the technology page’s reputation instantly gets boosted as well from the programming ping.

The search engines consider this type of link strategy plain cheating. Paying for your website’s popularity is now contraband in the Google's Webmaster guidelines. Those 70 sites that have been banned by Google’s search engines specifically bought, sold, traded, and used these “cheating” links to increase their search engine rankings. In fact, these sites were nothing but a hotbed of links, which were bartered and traded by the thousands. Clearly violating Google’s guidelines, these websites specifically targeted methods to cheat the search engine bots from obtaining accurate information.

However, the link controversy does not end there. What about the methods of increasing the sponsored links by embedding them within the main content? This is a method many of the blog sites use. There are many companies that pay blogs thousands of dollars to review their product and place their link on the blog postings. Charging $15 to $1000 per link, blog writers can carefully place these sponsored links in with their “independent” content, and thus, both humans and the search engine bots are deceived. These sites have not been punished, although they too clearly are partaking in the “paid popularity” contest of search engine rankings.

Beginning in April 2007, Google has become outspoken about their disdain for paid links. In fact, they have asked users to report any sites that are running paid links. Although Google acknowledges that webmasters have the power and freedom to do as they wish on their websites, they also counter that Google has the freedom to ensure that the search engine index rankings are based upon quality.

Time will tell whether Google will begin implementing wide-spread link punishments. The 70 websites that have been punished are only a very tiny percentage of all of the link directories that are in violation of Google’s rulebook. Some critics have countered that it is not fair for Google to utilize scare tactics to prevent webmasters from selling sponsored links, especially because Google does so themselves.  

Earlier in October, 2007, Michael Gray presented “Are Paid Links Evil: A Tale of Propaganda and Fear, Uncertainty and Doubt” at the Search Engine Strategies conference. In his presentation, Gray criticized Google for violating its own “do no evil” motto because they manipulate too manipulate the search engines for their own advertising revenue profit. Gray also purported that Google’s accusation that sponsored links are polluting the Internet was inaccurate; the sponsored links are in fact manipulating the search algorithms. Google programmed its algorithm to focus heavily on the links, and if web marketers understand how to manipulate the algorithm, they are not necessarily committing any particular crime. Also at the Search Engine Strategies conference, Google`s spam-hunter Matt Cutts warned webmasters, saying: “Don’t participate in link schemes designed to increase your site’s ranking or PageRank. In particular, avoid links to web spammers or “bad neighborhoods” on the web, as your own ranking may be affected adversely by those links.”

Some critics state that Google’s words are somewhat hypocritical, as the company derives most of its $13 billion annual revenue from sponsored links and ads. However, Google defends itself by the fact that sponsored Adword links do not add to a website’s ranking, but that other websites’ paid links do impact the search engine’s quality index. Therefore, it is other websites’ paid links that are downgrading the integrity of the search engine results, and that is not in the best interest of users.

Search experts predict Google's paid link filtration goals are simply a PR campaign, as it would be difficult to implement. In fact, distinguishing between legitimate and paid links embedded in text is practically impossible, especially on the scale of Google's massive index of every website. However, perhaps Google’s hope is that by instilling a sense of fear and responsibility, webmasters will think twice about sponsored, paid links.  

Echoing the pessimism about the relationship between spam sites and search engines is Apostolos Gerasoulis, executive vice president of search technology at Ask.com.  Although Ask’s quality index does not suffering as much from paid links due to an algorithm that only counts links related to the website, Gerasoulis still conceded that fighting paid links is an uphill battle. The more search engines announce the fight against sponsored links, the smarter webmasters will become at manipulating the algorithms, and there is no realistic end to the dramatic battle.
 
Since october 7th it is official, searchengineland reported that selling links can hurt your rankings and PageRank. Today I heard from one of the biggest Linkbrokers online, that many of his sites have dropped in PageRank. He thought that this is the long waited for PageRank update, but I had to tell him that this is more likely the paid-links penalty which he is experiencing right now. Hard times are coming up for all the linkbrokers out there. Personally I got several offers to buy linkbroker- businesses. I always denied to buy. I will not say it is going to die, but search engine optimization will look alot different in the near future. Let`s all wait for the Toolbar PageRank And Algorithm Update.
 
More information on the topic can be found using the search, looking up "paid-links".