Matt Cutts: Gadgets, Google, and SEO Text links and PageRank "let me talk about why we consider it outside our guidelines to get PageRank via buying links.
Google (and pretty much every other major search engine) uses hyperlinks to help determine reputation. Links are usually editorial votes given by choice, and link-based analysis has greatly improved the quality of web search. Selling links muddies the quality of link-based reputation and makes it harder for many search engines (not just Google) to return relevant results. When the Berkeley college newspaper has six online gambling links (three casinos, two for poker, and one bingo) on its front page, it’s harder for search engines to know which links can be trusted...
what is Google’s current approach to link buying? Of course our link-weighting algorithms are the first line of defense, but it’s difficult to catch every problem case in adversarial information retrieval, so we also look for problems and leaks in different semi-automatic ways. Reputable sites that sell links won’t have their search engine rankings or PageRank penalized–a search for [daily cal] would still return dailycal.org. However, link-selling sites can lose their ability to give reputation (e.g. PageRank and anchortext).
What if a site wants to buy links purely for visitor click traffic, to build buzz, or to support another site? In that situation, I would use the rel=”nofollow” attribute. The nofollow tag allows a site to add a link that abstains from being an editorial vote. Using nofollow is a safe way to buy links, because it’s a machine-readable way to specify that a link doesn’t have to be counted as a vote by a search engine."
So, not OK to sell to pass reputation, OK to sell for traffic....
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