Earlier quoted context omitted.
Hi, the original post author here. Hundreds of thousands of paid links? Excuse me? We do NOT pay for links. The only thing I can imagine has initiated Penguin - we sell web-software (forum software, helpdesk software etc) that has a footer link "powered by XXX". We dis see this affected our rankings a year ago and we're still trying to recover (making those links "nofollow" trying to contact the linking webmasters et…
Sorry but I don't buy it. You're telling me these links don't look paid to you (and this is an example of just the first page): http://www.webhostingsearch.com/web-tools.php - Spammy footer link http://jack-fx.com/ - Spammy blog roll links http://www.helpdesk2000.org/ - More spammy blog links http://www.chat-software.org/ - Spammy footer links http://www.cloudcomputing-providers.com/ - Spam network links in blog post…
Also, what makes you think a blog roll is always "spammy"? The second one seem to be a blog about ASP.NET, the author recommending our software... There are plenty of review people post about our software: http://www.youtube.com/watch?v=FVuB3oGr5pw here's a video review of our Jitbit Crm for example...
.. but anyways, I guess you ARE right, we do have to disavow all these links and contact webmasters so they remove it. Not sure if this the seo-guys we hired who screwed us up, or the result of negative seo (unlikely, but who knows)
PS. feels kinda uncomfortable when everyone's investigating my site, my backlinks, you know my name, my blog, even my home address from whois records, but I know nothing about you. Just some "uts_" guy on HN. Justsayin... It's like you're naked on a scene, everyone sees you, but you see nothing because of the lights :((