Does Bad Links are penalize by google or not?

I have heard some stories telling how bad links can hurt your website ranking.
google penalize sites having links on bad sites. i read an article on seomoz telling how to recover from bad links, they too told that google penalize for bad links.

but recently i read an article saying that google do not penalize your site for having links on bad sites. the reason he gives were quite good.
The thing he pointed was. If google penalize for bad links then most of the peoples were hiring seo’s for promoting the links of their competitiors on bad sites.
according to his theory the reason for lost ranking could be
one website has lots of backlinks some of them are on bad sites, the links were counted as good links as google was not aware of bad site.
Now google has started deindexing the bad sites and stop counting its links.
so the number of backlinks for the website are reduced as links from badsites are not included which will lead to falling ranking.

this article made me confused which one to belive.
i hope second one is true, can you suggest

If it was that easy to bring a site down, then there might have been a group of people out there who already started a campaign of creating links on bad sites directing to the competitors’ sites just to lead the SERPs. Well, that’s what I think.

What Google could penalise you for is lots of outbound links to dodgy sites, particularly to link farms. Sure, someone might seed a thousand inbound links to your site from dodgy sites and there’s nothing you can do about that, and so it would be unfair for Google to penalise your site. But if you’ve got reciprocal links going with a thousand link farms/wheels/whatever-shape-is-“in”-this-week, that shows that your have been complicit in these dodgy links, and so Google very likely will give you a slap.

it depends what you mean by “bad” links, Google could potentially penalize you for any links that don’t look naturally acquired, or as mentioned above link farms, for example if you have a network of hundreds of spammy sites all from the same IP address interlinked with each other for ranking purposes then you could get penalized for that. Focus on building natural & relevant links, come up with ideas for sending branded visits via google to your site and diversify your anchor text distribution.

Google may not pernalize all bad website,so you need to have the knowledge to check yourself, which site you should build your link and which site you should not have link back to them or they link back to you .
You can check webmaster tool for all the link to check any bad link on your site and remove or set it as nofollow on your site.
This may a reason why lot of high PR sites do set their comment to nofollow due to they scare comment link back may harm his quality of his blog.

Hi there, Big G certainly has the technical know how (and they are steadily getting better - so are the SEOs ;-)) to analyze your incoming links and should there be any doubt, they will for sure either hammer your site or you might get a notification in your via your webmaster tools… happened to me the other day: “please delete all bought links and notify us when this has been done / submit your site for reconsideration” DON’T!!! LOL BTW: Disagree with Gerald…there are companies out there that offer just that and apparently it works…you can intentionally bring down your competitors page…that is the darkest shade of black hat SEO :wink:

Not very sure about that. I have done a huge amount of LINK BUILDING in my SEO career. Many times few links are not up to the mark. To be honest i have done those deal for Target fulfilling. But still the sites are going fine in SERP. But i always suggest to do Link Building with quality sites.
Those links might have harm my site a little but the consequences were less due to my other SEO practice.

Yes bad links and unnatural links both are not good now after google new update. Please read this one

Things have changed. Google is now after bad links. Not only bad links, un-natural links can harm your ranking. Google latest update is changing the way we thought about links earlier.

I do not think so, inbound links will not harm but it effect on the link value. I think link farm may effect, make bulk links within short period, build links by tool etc…

Of course they are penalized, now more than ever since the last update of the Google algorithm, which has focused on the fight against spam, says this latest update would affect about 7% of all search results because using black hat SEO