What is Paid Links In seo..?

Links that are explicitly sold for money are the most obvious. A webmaster sells a link to another webmaster in exchange for a certain dollar payment. That is clearly a paid link, and Matt Cutts said that is the most common paid link
 
These are links you put on high traffic site so you can attract visitors from that site to click and visit your site. It can also be vice versa, you can offer paid link in your site if your site have high traffic .
 
It depends there are only a few paid directories that will give you a bump in the rankings (the Yahoo directory is one of them). Free directories have never been that good at passing PageRank. Instead, their benefit mainly comes in the form of anchor text (which when combined with other higher quality links will help your rankings).

Nevertheless, SEO will never be about one type of link. The search engines are looking for what looks natural. And while directory links, or any other kind of link for that matter, do help your link building efforts look natural, they are simply one tool you have in your link building tool belt.
 
A paid link is simply people paying money outright for links to flow PageRank from one site to another to get higher rankings.
 
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