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But that's the beauty of building any type of business when there is plenty of pre-existing competition.
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Useless, I agree - if your goal is to build a better link list than DD or penisbot. I don't agree if your goal is to build a site
just like penisbot or LOR in the hopes of making money by replicating something that's proven to work.
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If the big G favored the well-branded sites in some way, then wouldn't they always appear as the top results?
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Google is like American Idol. The judges have little control over who ends up winning. Ultimately, voters decide the outcome. All you can do as a contestant is to please the crowd and hope you get the most votes.
Wikipedia never bothered with one link trade, reciprocal link, or content submission but millions of people feel compelled to link to it. And those votes help Wikipedia rank on the first page for everything under the sun. Even a
deep page about Splinter Cell is TBPR 6, which reflects the overwhelming visibility and popularity of that site.
The big LLs have an edge (more trust, more organic IBLs, higher visibility), but they don't have a lock on their front page positions because Google doesn't trust them completely.
For example, linking out to free sites that have iffy linking profiles (e.g. reciprocal linking with 30+ sites on domain root) will hurt your SERP ranking and lower Google's trust in your site, but I'm guessing all free site reviewers accept submits without checking the outlinks of the domain a free site is on. Notice how all outbound links on sites like Technorati and del.icio.us are indiscriminately nofollowed? A high quality paid directory will not nofollow links but they check submitted links more thoroughly and they charge $100+ per submission.
Penisbot's low home page TBPR 5 is a reflection of Google's lack of trust in that site. I mean, c'mon, 316,000 IBLS (according to Site Explorer) and only TBPR 5 (medium PageRank)? A Googler's new blog (vanessafoxnude.com), only a few months old, is already TBPR 7. That tells me none of the IBLs to her site are being devalued (and why should they? They're all editorial and one-way, no ABA, ABC crap).