Rankings dropped after several backlinks

The point is I'm not sure if really paid links are problematic. My competitors always get paid links with exact anchors and they good positive results. I think google still respects paid links from high authority websites. Although, I'm not going to use exact anchors anymore.

Then do it and take that path. :-)
 
If the backlinks are from low-quality, high spam score sites, disavowing them may help prevent further harm. After disavowing, focus on acquiring high-quality, relevant backlinks to recover and improve rankings.
 
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