In the “Pre-Panda” and “Pre-Penguin” days a random automatic backlink generator could do some great work for your website rankings. But Google saw this too and found out that the automatic backlink generator was used in fact to find a short cut to high rankings. The first real Google attack against these short cuts was named Panda. It de-reanked many large and small websites who Google accused of mis-using the guidelines of the search engine.
The second update was even worst for people looking to boost their rankings by using easy techniques. Penguin made is possible for people who made thousands of Euro’s a month with their website to degrade to nearly zero. It affected many of the large players. Meaning, it is serious.
So what can we do today? First of all search engines are looking for quality ánd quantity. So if your website has only one page with a salesletter on it, Google won’t see much value in it. It does not really matter how many backlinks you send there. Chances of being rewarded with a number one position in the search engines are minimum.
Second, when you want to use some kind of automatic backlink tool, you must focus on providing quality information to the tool so when it “spits out” these information, it looks like real content, reads like real content and can be observed as real content. This is your magic formula. Especially when you use multiple ways to build your links.