I was running text link ads on my blog, used to have PR3 but that dropped to around PR0 about a year ago, almost the same time i started using textlinkads. Thing is i make around 20$ from that site. If google is indeed penalizing me for running it, is it worth leaving the 20$ or better to continue. I believe I can learn from ppl on this forum who probably have 100X more experience than me. So please guide me.
Google doesn't like it if you try to sell links based on page rank, as long as that is clear, you should be fine.
Well, google may penalised site for paid links if use to manipulate PR or rankings but if you add no follow attribute to your paid links then you will be in safe zone as by adding nofollow links to them then it describes to google that the links are for advertising and not to manipulate PR or rankings.
What I really wonder is how does google know that its a sold link. I mean the TLA plugin works behind the scenes, how can google know
TLA was hit with a penalty by Google a while ago: http://sphinn.com/story/974 Around about the same time a lot of publishers that were selling links through TLA had their Pagerank reduced. Snowscar - A google employee can just log in as a TLA user and purchase a few links, which gets them the urls. For those that might be interested, here is a link on getting your Google penalty removed: http://www.davidairey.com/how-i-reversed-my-google-ranking-penalty/
Google knows everything!! maybe your selling links with do-follow links. try selling links with no-follow. that's my suggestion to you bro!
Here is what google has to say about purchasing paid links. http://www.google.com/support/webmasters/bin/answer.py?hl=en&answer=66736 I think text link ads are ok, as different from text links, if they are clearly labeled as ads.
I have experienced the same. Has this PR penalty resulted in SERPs penalty too? One of my sites lost PR after I started using TLA, but there was no impact on the SERPs.
google penalizes for running contextual text links on your site. Sooner or later each site gets caught by google.