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Have you ever wondered how Google determines what a paid link is? Google has a criteria that must be met to determine if the link will be a paid one or not. There are 5 basis criteria used to determine this.
1. Explicit link sales. Sales from a link are the most common according to Matt Cutts. What this means is that a webmaster would sell a link to another webmaster for a set dollar amount.
2. Close to the value of money. Google will look at this to see how closely it is related to the value of the money. For example, you might give out something free that is of small value, which in many cases might not sway the buyer.
3. Gift vs. Loan. Many times a company will let a user loan a product so they can review it. However, if the company is going to give them the item, and never ask for it back, this is closer to a paid link.
4. Intent of audience. When stuff is given away, it is often not the intent of the audience to use this item to link to the said person giving it away, rather they see it as a thank you.
5. Surprise or not. Will the person be surprised or not? For example, you give a reviewer a months supply of the product you are selling so they can review it. They most certainly will not be surprised. However, if you give them something of greater value, such as a new cell phone, they will surely expect a surprise.
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