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Will Google index just an IP address without a domain name attached to it. All 100 sites would be similar but layout would be slightly different and text would also be slightly different.
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Yes, but there would have to be some links to them from other sites. This is a scheme that is frequently detected by Google and in the recent past Google has been proactive in detecting and penalizing domain and IP spam.

First and foremost, is the client always right? You were smart to send him to the webmaster FAQ, your client was dumb to disregard your advice. From experience I can tell you this will be the first of many problems this client is going to cause you. Do you really think you are acting in the clients best interest if you facilitate this strategy? You will be just as guilty of spamming as they are. Do you really need a client that doesn't respect your advice enough to follow it or worse believe it.

Secondly how in the heck did they get 100 IPs to perpetrate this scheme. We have had trouble getting what we absolutely need. This isn't just a bad SEO strategy it is irresponsible use of a limited and dwindling **public** resource. Nobody **owns** an IP they can't do as they please with them. IMO, this is just wasting a resource that is in short supply.

Thirdly, Google does IP and domain name lookup. The ownership of any IP is in the public domain. So, to think Google isn't going to spot a scheme this big is just plain stupid. It is blatant and could lead to penalties more severe than simple penalties on the IPs. It will most assuredly be the domain these point to that will get penalized or banned.

This is just another scheme to inflate PR and link popularity. Both of which are currently under close scrutiny by Google. Many of the changes that are presently in the Google SERPs are a direct result of this scrutiny.

My advice is walk away to avoid getting some of this on you when it eventually blows up. It isn't a case of **if** but when they will get caught. The cost of building 100 sites is going to be substantial, the IPs from an SEO standpoint will be useless so if it's a host or other entity that may want to use them for something legitimate after this blows up in their face then they are risking those IPs as well.

Where do clients come up with this crap? From irresponsible publishers and authors many of whom this industry actively supports by buying their products. If a company or product propagates spam techniques do not buy their products or subscribe to their publications! You are indirectly supporting them and therefore also guilty of propagating the myths like the one above. If they don't publish this BS then clients won't come to you with these sorts of schemes.

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