What if I get a Link from totally different niche?

We always try to get backlinks from related niche sites and that’s the best practice in SEO. But, what if we have a close friend who runs site totally different in Niche? Those may look like Paid Links and competitors can easily report that to get you down the rank.

The Google Guy Matt Cutts answers that question in this video. In his suggestion, he said to wrap some text around that link and also (or) mention this is NOT a Paid Link.

The video is about 6.3MB in size and 1 Minute and 34 Seconds long.