I have been considering starting an article site. Has anyone had success starting one of these sites? I have heard some stuff that Google is devaluing the links on article sites also. I'm wondering if there is any truth to this?
Since article sites has a lot of content. That is why people say they are good for the search engines, provided you have quality and original content.
Article sites can not have original content otherwise they will become personal article sites. And to be honest, 95% people submit articles to get backlinks and 5 percent to get traffic. People who submit articles to your site submit the same article to 100's of directories and the article can never come on top in serps. For example, my article site Health Articles gets like 200 submission per month and when I checks the content in search engines, I can see the same content on many other sites.
Your question is broad. Effective in what sense? For you to make money or for you to generate 1000s of pages on your domain or get BLs? If you want to get BLs then you need to submit articles to as lots of directories that are crawled by the spiders. If you want to make money using adsense or alike then you need lot of unique content, generate lots of BLs to those pages, eventually ranking high in SERPs and driving in traffic. Unique content is hard to generate, hard to convience good writers to submit their content to a new site like yours - not impossible though.