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What I am wondering is how can Google tell what the compensation is - without being a 'pretend blogger' or something alongside these lines, or unless the compensation is listed on the linking out website.
I'm not sure Google are in a position to tell what's a paid link and what's not
Paid link or compensation for time involved to provide a service?
If I pay someone money to create some content, are the links in that content paid links? Seems to me those links only appeared after some money changed hands.
But most people, at least in this business - when they find something that works, they *do it to death*
It continues to amaze me that Google thinks it is any of their business on the specific financial arrangement for links.
It would be amazing if Google didn't object to links that were bought and sold in an effort to manipulate Google Search results.
Participation in AdWords is buying links.
The difference is where the money went to get you above the fold.