The more clicks a surfer needs to make to get to a page, the less important a search will consider those pages. If you've buried a page, five directory levels into a site, then really, how important is it? That's the basic concept.
And in fact I've heard from more than one resource that Google only digs three levels deep. With all the millions of pages on the Web, search engines just don't have the time, or the space, to crawl and index every page on every site.
But if you worry about this too much, you'll end up with a really messy site structure that may take you ages to navigate through and find things while you're working. If all your freesite pages are in one directory, you may have a hard time trying to find one page dealing with a particular sponsor. I'd concentrate on creating a directory structure that makes sense and works for you, and make those pages on the root level the best they can be. You can always lead surfers and search engines to pages you want if your index page is built correctly and strongly.
Cheers,
Michael
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