Sites aren't penalized for having affiliate links, as there are some very reputable sites that make a lot of money from affiliate marketing. Sites are penalized for crappy content, shady backlinks, and other methods that try to game the Google algorithm. Google doesn't mind if you have quality content and rise up the rankings organically, but if you need results now, they're going to make you pay them via Ad words to drive traffic. Having to pay for traffic is what will put a serious hole in your ROI.
The Digital Marketing/Internet Marketing Data Sheet Pt. 1
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