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I think everyone will agree that flat rate is best -- less headaches.
On a different note : have you tried gallery spots as opposed to banner links? Even with poor traffic you'll get significantly higher conversions. About $2k to $2.k per month will get your galleries on sites with appx 4 million combined uniques. At a daily break-even of only $66 dollars you should do very well, given that these are your own paysites...
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