having your own stable of sites to not only list in your categories but also to feed traffic to the linklist is very important imho.
if you dont have enough of your own sites to fill the categories then there is very little reason to do a linklist. the ads and other marketing you do on linklists arent nearly as profitable in the beginning as the sites you have in the database that have your own codes in them.
i would suggest thinking of it as a hub which accepts other webmasters sites for a recip more than to think of it as a linklist until you start getting good se placements. treat it as just another source of traffic for your freesites initially.
the other reason i discourage folks from starting linklists if they dont have enough sites to fill the cats is because odds are you dont understand the free site model much less why linklists do what they do. i personally think this is the reason we see such odd rules on new linklists sometimes imho
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