A webmaster put an interesting question about nofollow links he asked "whether having too many nofollow links hurt his website ranking?"
Matt cutts the head of google's web spam team said that having nofollow links usually doesn't hurt search ranking in normal cases hot but in some cases where there is an identified spammer that is abusing the whole system and large group of people are submitting complained against it then yest in that case google has rights to take action against such activity, if they found they can revoke manual action against that website since you have the control over your website then your rankings can be hurt too.
Steps To Avoid Manual Penalty
Even if it happens for some rare case but it's better to be prepared for everything as it's your business and you should protect it from any potential threat to your brand.
If you run a UGC site where user can submit content or you accept any third party content then you are more vurnuable to these manual actions so it's better to keep strict moderation on what being posted on your website as i run a webmaster forum i have put couple of moderators to avoid spam activity also if you run blog take some time to visit website of your commentators as you might link to some website which can hurt your reputation.
What are Manual Action?
Google has sophisticated algoritm that have been programmed to show the best results on the serp apart from that they have a spam team which can place manual penalty upon a website that violets their webmaster guidelines.
What To Do When You Got Manual Penalty?
First you should stop being panic and identify what has lead to this spam action most of the time the reason is posted on your webmaster central account just make necessary changes based on the problem and file reconsideration request they generally lift manual penalty if they found that you have made necessary changes.Good Luck.
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