Welcome to the Q&A Forum

You are correct that our tools will report the link and the link equity from it. We don't discard or discount paid links. Google has taken major effort to do this -- much of it very manual, human reviewed -- and we don't have that kind of bandwidth.

That said, we do have something exciting in the works, hopefully, releasing no later than early Q1 to more comprehensively look at the quality of that link. Stay tuned.

Exactly right.

Wonder why your small business can't compete with the big name brands? That's why. If you're not buying links to some degree, you're probably not ranking very well.

There's really no way for them to enforce that policy unless a lot of people squeal about it.

I know here at Moz, it's really something like a Taboo, but it's really not. Big companies do this daily and they do it in bunches.

I would suggest though (since you mentioned that it's just a bitly link) that you just go for it IF the price is right and if it's targeted enough.

Look at it at the standpoint of getting traffic. You mentioned that it's a good site then it probably has a good spot for your link so it can bring in leads. If you can optimize to capture these leads or just get them to your sales funnel, then it'll be worth it. You'll get more links down the line.

It's pretty much like guest posting or paying for a best of the web spot.

Yes, google is saying that all paid links should be no-follow, They are saying paid links are a plague. And I believe they mean it. But I am not sure they are able to enforce that policy.

By my experience paid links are so widespread google is going to find that battle hard to fight. They code their algo, and they are google, but the rest of the world is selling do-follow links.

In all backlink profiles I analyzed, all of them, paid links are probably 80/90% of the total. And I am not talking about spammy blog networks. I can give you a list of hundreds of sites with DA50-60 and PR5/6, including major worldwide news agency and leading national newspaper in all G7 countries... who sell sponsored content with do-follow links.

You may be big, strong, motivated and just, but when everyone else is doing the opposite of what you want I think it's tough to impose your will. And to date seems google is very far from reaching his objective of exterminating that plague.

Am I suggesting to buy a do-follow link from a website with (let's say) DA20 and PR2? No, stay away.

Am I suggesting you should go on a buying spree? No.

Am I telling if you buy links you take no risk? No, rap genius or bmw are good example of big names being it by google axe (but not for paid links). But I don't see google starting tomorrow to penalize 90% of the web. As for all things maybe in few years paid links will be a thing of the past, but today they are not.

I am saying everybody is doing it, and as far as you buy the links from reputable websites, so far, seems you are going to get juice without running much risk.

And yes everybody will tell you should not do it.

It's a grey area to be sure. Lots of the things that Google states can contradict one another, such as in your case: They want you to have authoritative backlinks from reliable sources, but they dont want you to pay for it. (Might get in their way of getting your Adwords dollars, lol)

In this case, look closely at what you are getting. Sites like YP, Chamber of Commerce all offer paid profile creations, with the paid profile links being of a higher visibility within their website. If you are getting a full profile page, with lots of ways for you to support your business or company then it could be beneficial. If you are getting a small, otherwise unfindable profile page with a anchor text optimized link directly to your site, I would stay away.

Think of the benefits of having the link. Is your link going to be placed somewhere it can be found, and when found, does the page that will be linking offer the user anything. How does the profile page help build upon your brand?

"If I were to pay for a profile with them, would I request for a "nofollow" link back to my site? "
Again, it depends on how they set up the profile, and how they set up their profiles for all the other businesses on that site. If Google sees the site as just a way to milk money out of people for paid backlinks, they will get hit and eventually so will you. I would do some investigating into the other businesses that have profiles on there, and see how they do in search results. Either way, one link will most likely not do a ton of damage to your reputation, but is that a risk you would be willing to take? Just boils down to what you feel comfortable with.

Google should still be able to see the webpage the links originated from.

Like Anthony said, it's a grey area. To the best of my knowledge Google has been consistent in saying all paid links should be no followed, but in the real world this isn't what happens. I know of many sites in my niche paying a lot of money to advertise on a site that grants them followed links. The question becomes do you join them, or do you do what Google tells you to do?

That's up to you, just know there are risks, and you never know what Google is going to decide to do next.

As Mick said, Google's policy is that ALL paid for links need to be no followed.

Here is a Matt Cutts video where he explains their philosophy: http://www.youtube.com/watch?v=zupIbMyMfBI

Paid links are always a gray area. Yahoo Directory and other authoritative directories have always been out there over the years as a recommended spot to get a link, despite costing money.

My recommendation: Go for the link if you think it's a good site and may send some traffic your way.

One or two obviously paid links that all your competitors also have, isn't likely to cause an issue for you. If this is a tactic you are intentionally abusing and have a lot of paid links-- then you are going to be at high risk.

I'm sure others might disagree with my response...

If you play with fire you'll get your fingers burnt.   Any paid for link must be no-followed and the guys who don't do that are playing a waiting game for Google to catch on.