Pat Flynn on Smart Passive income wrote a really good piece on back linking strategys, in short create web 2.0 sites back link to these, and then link again through to your main site. Great for avoiding the "google slap" Check it out here : http://www.smartpassiveincome.com/backlink-strategy/
If you blasted hundreds of backlinks using an automated tool to your new site, it will probably get sandboxed. That's why I don't use Xrumer or Scrapebox to build backlinks to my new money site. You can however build backlinks to your linkwheel.
Yeah, you gotta make sure your doing it correctly. Don't just buy links randomly. Make sure your pages are setup properly for the links, and make sure the kinks are high quality do follow and not shitty backlinks.
instead of buying links or using tools i reccomend setting up micro sites you can harvest quality links from. so if you had a site selling garden benches, you would build a garden bench site with quality content, once it ranks for its keywords you can start harvesting SEO anchor links for your money site. These sites not only make you money too but theyll push your other sites up much faster than junk links. Another good trick to find good links is by searching for guest post blogs in your niche. so for garden benches i would google "guest post" gardening. or "write for us" gardening. As long as your micro siote has good content the blogs will likely be fine letting you link outbound.
your site is not ruined it just has a goop there are many ways to recover from it and all sites can be recovered google recover from goop filter
How you do the back links is important. You should have asked the company you hired on where they get the back links from, quantity of out bound back links and so on.
As others have said, natural backlinks are important. Write quality content, distribute it and contribute to discussions. That way you get to leave links around the places you visit. It also gets your site / product / service noticed, so others start talking / blogging about it etc.
Backlinks are really good and necessary, but you need to do it on the right way or your sites/blogs will be penalized... SENuke is a good choice, with a little learning curve, you should have great results...
There could be various reasons why your site ranking went south. It happens usually with the new site; google dance is what they call it and it is hard to know what they'll do next; you have to try build a variety of links in a natural way, not too many backlinks at once, so that it does not raise a red flag.
I think is just the google dance. It happened to 2 sites of mine when they received lots of backlinks in a short time period.
Backlinks are very much important for any SEO service. There are lot of ways to have high PR backlinks. I would like to say here,in link building quality and relevancy is most important.So we should always try to get backlinks only form relevant websites.Use all link building techniques and place links only on do follow,high PR and relevant websites. and the one that is valuable an d i m also using for last couple of months is via site http://SeoDataService.com which provides high PR back links in a very short span you must try this .
You have been stung by rubbish backlinks which is the case for most companies who use a dedicated backlink company instead of a true SEO company, we deal with loads of clients who have been stung by spam backlinks. It's a long road ahead in order to gain the trust of the search engines again just carry out marketing your website but in a highly ethical way.
How old was your site when you bought the back links and how many did you buy? What sort of links were they?
Google never recommend such link building ways. The natural linkbacks are OK but not the purchases and non-relevant links.