What are your views on paid links on your sites? For example banner ads or affiliate links.
This is what Google says about it:
Quote:
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Paid links: A site's ranking in Google search results is partly based on analysis of those sites that link to it. In order to prevent paid links from influencing search results and negatively impacting users, we urge webmasters use nofollow on such links. Search engine guidelines require machine-readable disclosure of paid links in the same way that consumers online and offline appreciate disclosure of paid relationships (for example, a full-page newspaper ad may be headed by the word "Advertisement").
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What do you do and what do you believe is necessary to avoid a Google penalty?
Do you cloak your links like site.com/out/sponsor or do you use regular affiliate links like site.com/join.php?wid=1234
Do you rel=nofollow your affiliate / advertisements?
Do you combine cloaking and rel=nofollow?
Finally, Do you inform your visitors (and Google) that there are adverts on your site?