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@robwatts - You're right about the 302 Rob, but I guess the point that I was trying to make was that there is a way to advertise and still get the endorsement of the big G. David made reference to the fact that he removed his ad page & would no longer advertise on his blog. What I failed to clearly communicate in my last post was that I didn't think there was a need to go to this extreme.
David - not sure what tanked your traffic, but I'm pretty confident that it wasn't paid ads. Take a look at Google Adsense success stories: https://www.google.com/adsense/static/en_US/Success.html . You will see Ask the builder: https://www.google.com/adsense/static/en_US/AsktheBuilder.html who is far from bashful when it comes to selling ads: http://www.askthebuilder.com/AdvertisingRatesandPrograms.shtml. Those paid links may not have passed any PR juice, but there is no evidence that any site's rankings have suffered for selling advertising - paid links or otherwise.
Hey Todd - this is the second best writup of the conference that I have seen:~). Seriously - excellent review - keep up the great work & thanks.
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Story: A tale of Paid Link pain and woe