I think they have their place - I'm both a pay-site owner and an LL owner.
I’m no expert but here’s my take on the issue.
1. Recip-free free-sites typically have the authors affiliate codes imbedded in the links of the free-site.
2. Sponsor hosted free-sites should have no affiliate coded imbedded in the free-site. This allows you to link to the free-site using your affiliate code for that specific sponsor and recevice credit for sales generated through that free-site.
If I place your recip-free free-sites (as opposed to sponsor hosted free-sites) on my LL, the free-site creator gets the affiliate sales commission, then I, as the LL owner, get nothing except content – which helps SEO and keeps surfers happy.
If I place sponsor hosted free-sites on my LL and sign up as an affiliate for that sponsor, I get all the benefits above plus a sales commission on all sales the free-sites bring in. Same goes for sponsor hosted galleries except the free-sites offer more content for the SE’s.
As an LL owner, I usually only place recip-free free-sites in cats that I need to fill with content or as a favor to submitters that have treated me well in the past. I’ll place sponsor hosted free-sites on the LL more often as they create a potential revenue source for me.
As a pay-site owner, all of my clean free-sites have no affiliate codes internal to the free-site and can be used with your Glassmannequin.com/CCBill affiliate code when placing them on your blogs, LL,s and hubs. Great way to make a little $$$.....
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