Matt Cutts revealed that Google is already testing their new service that will search and show what sites are selling links. And considering the tips shared by Matt, it seems that blogs selling links are considered spammer.

- Sign in to Google’s webmaster console and use the authenticated spam report form, then include the word “paidlink” (all one word) in the text area of the spam report. If you use the authenticated form, you’ll need to sign in with a Google Account, but your report will carry more weight.
- Use the unauthenticated spam report form and make sure to include the word “paidlink” (all one word) in the text area of the spam report.

Gray called the info posted by Matt (this, this and this) as Google’s Hypocrisy. But, Matt made eveyone to think that Google will realy penalize bloggers selling links, just like what Scobble has pointed out. We just don’t know yet how Google will penalize them.

Now, the real question is: Is it really possible for Google to identify paid links? Yes, it might be possible if they’ll employ some spy collecting data from paid links media like PayPerPost, Blogitive, BlogToProfit and others (as pointed by Scobble). But how about those sold links which are not actually sold via those mentioned media, can Google identify them? Well, that’s the real problem how Google will do that. Tony even wonders:

 Is this Google’s Achilles Heel? Will Google ever be able to sort this out without resorting to the messy job of using puny humans to hunt for paid links? Would they resort to the FTC ruling on reporting word of mouth marketing to bludgeon bloggers into disclosing their paid links? Even if puny humans ARE sorting through blogs searching for paid links, COULD they ever find them all?

Let’s just wait for Google’s official announcement about this. I don’t know how would John Chow (who is also selling links like me and is now on the top of the world) react on this matter…

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