atlrus - 4:52 pm on May 15, 2013 (gmt 0)
It could take months, and if the company says they won't pay without the nofollow stuff, fire the company. Because there's a very good chance that Google will eventually whack you both anyway. If you're an .edu or a site with very high trust and authority, it sounds like they're counting on those links to prop them up.
Unfortunately the days of the do-follow paid link are just plain over.
UNLESS you get your traffic from other sources and don't rely on Google. But then you have the problem that the other site gets penalized, and then they're probably not gonna want to pay you for those links anyway.
I disagree with everything you said. If the main income of the website comes from the paid links, why would they fire the company? How would they get paid? Do you even know the difference in price between a do-follow and a no-follow link? Clearly you don't, with a statement that do-follow link buying is dead. It's actually very alive and thriving. I honestly doubt they'd be able to pay even the hosting with a no-follow link. What an awful advice.
Your statement sounds a lot like paranoia: "Hey, if you are afraid of the high odds of getting in a car accident - don't leave your house". Any website could get the boot from Google at any time, this has been proven over and over again. The same way any business can go bankrupt, even one as big as GM. There is always risk.
As far as the links - if they are relevant and not a lot of them - you have nothing to worry about. I buy a lot of links myself and if it didn't work, both I and the websites where I advertise would've long disappeared.
There is nothing wrong with linking out. The entire web and Google's business is based on websites interlinking. Whether you get paid to link out or you did it for free, the final effect is the same.
My advice is to cut the middle man (link company) and work directly with the website owners. It may be a bit extra work, but you would have much better control and get a bit more money. Ask yourself, would I be comfortable linking to this website for free? If yes, then get paid for it :)
Remember that using no-follow in your links simply shows Google that you sell ads. It benefits you in no way. If the website you plan on linking to is bad enough for you to want to put a no-follow, then just simply don't link out at all. It's that simple.