What is the penguin?
It's a technique (algorhythmic update) used by Google to filter out any spam listings used by websmasters or SEO companies to boost website rankings within the Google network.
Some companies use artificial techniques in order to boost website rankings. They blanket submit sites to hundreds of irrelevant directories or exchange links in order to boost a websites popularity.
Google may contact website owners and advise that they have detected unnatural links pointing towards their site. In this case they may be asked to fill in a re-consideration report once these links have been removed.
Unfortunately is has had a catastrophic affect on many businesses who have seen their rankings (and earnings) take a dive.
The first Penguin update was unleashed in April. Updates are generally carried out every six weeks or so but it has been 9 weeks and still nothing.
If you do decide to use an SEO company then please do make sure that they don't use this approach before signing up.
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