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How about instead of being a link farm you host ALL of the free sites on your domain.
Set up hosting logins for 10 of your friends or trusted submitters, each with their own section. So when Bill logs in via FTP it's linklistname.com/bill as an example. And you as the link list owner host every single site they submit. You gain hundreds, maybe 1000's of internal content and pages and in essence content so google should like you more.
And if a webmaster goes offline you don't don't have a bunch of sites going 404.
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