The problem is, I’ve seen many web directories offering links that you pay for to be “featured”, and some directories will not list you at all unless you pay them. Many sites promote the use of such directories for link building.
So, how can these directories provide legitimate back links if Google considers them to be against their guidelines for legitimate back links? In other words, since they’re paid links, then doesn’t that mean they would have to be nofollow and could not form the basis of a legitimate link building campaign?
Normally it is dodgy companies taking risks with clients who have no clue. The risk being that Google et.al. haven’t taken any action against those sites…yet…
I’m of the belief that Google is well aware that most directories offer “paid” inclusion and they treat them as such in terms of the backlink value. So sure, getting directory links might be one part of a backlink building campaign, but a directory link sure isn’t going to be as valuable as a link from an authroity site in your niche.
Makes sense really, if directory links are easy to get and risky (because who knows if/when Google might penalise a paid directory) why should they be worth as much as other backlinks as far as Google is concerned?
Yes it is true that Google does not like paid links. And with the opportunity to build free backlinks elsewhere, why would anyone want to pay just for inclusion in one directory. Sure, building them for free can be time consuming and tedious, but the money you would spend to get listed on one paid directory can be invested in hiring someone to help you spread quality backlinks elsewhere.
As someone else said here, most directories use this practice because they know that there are a lot of beginners that really have no clue as to what should and should not be done; and therefore they take your money without telling you that Google will not consider your link with them.