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Is paying for backlinks considered “falsifying links”?

I am currently working through an advanced SEO certification course. There was a short section about falsifying links that left me confused. If an SEO company were to create content that links back to their client’s site and then pay to post that content on some guest site… is this considered falsifying links? Is this a gray/black hat practice? If the search engine catches this, is it subject to a penalty?

submitted by /u/nattyspicyice
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from Search Engine Optimization: The Latest SEO News https://ift.tt/4hL25ME
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