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Penalties for gaming the system should be permanent.
But can you write an algorithm to sort paid links from organic links automatically?
I've always thought that Google's core search ranking algorithm gives too much weight to exact query in domain.
However I've often wondered if it's because of the keywords in the domain name or because that domain gets links naturally with the keywords in the anchor text.
I have a 1 week old website where the only links come from my 2 other sites and my Twitter posts (no retweets yet or tweets about my new site), but it is already #1 for its search term which is its domain name. This is a fairly competitive keyword with about 306 million search results.
Great question. Agree with a lot of what's been said about paid links. I've always thought that Google's core search ranking algorithm gives too much weight to exact query in domain. It's too easy to buy a two or three keyword domain with a lot of query volume, pay attention to title tag and body content and rank above the fold with little to no link popularity. I've heard this from a number of webmasters and am surprised that it's not here yet.
If a site has 3000 links from China it should show up well in Chinese SERPS and not USA Serps.
Not artificially boost Google services in the rankings such as blogspot... I cannot stand this and is what I hate most about google.