Thread: Paid directories - penalized by Google or not?

I was always wondering why/if google is penalizing paid directories, especially the ones that impose a monthly or yearly fee for having your link listed.

I am asking this because google guidelines tells that paid links is something bad and a site is heavily penalized for buying/selling links and, in my opinion, paying a monthly/yearly fee for a link somewhere is exactly what google does not accept.

Any comment/experience you had on this matter?

This is the everlasting dilemma, I doubt anyone can offer a strict and correct answer.

Thanks for sharing this information.

Matt Cutts has clarified the situation in the past by stating that directory listings are fine providing the purpose of the fee is for a selective review, with only quality sites accepted rather than the directory becoming a “free-for-all link site”.