These guys pretty much covered it! I just wanted to chime in and tell you that your site def. did NOT get penalized . Your site will constantly bounce around like that as you build links/ social , its normal.. Don't Worry
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I also wanted to say that if you decide not to ditch SEO entirely that I suggest, and this is my opinion keep in mind , if you have GSA then I would build some tier 1 web 2.0s MANUALLY with GOOD content pointing directly to your main blog ( Money Site) . What I mean by this is create a hubpage, squidoo lens, blogger.com blog, etc ( theres 100s of 2.0s ) with 2-3 articles on them directly relating to your money site linking back to your money site in each article. Create say, 10 web 2.0s ( depending on competition of your money sites keywords) , once again with high quality manual written content pointing to and relating to your money site ( important) . Then, create your Tier 2 with GSA create a campaign that builds lets say 20-30 links a day PR2-3 or higher to each of your web 2.0s(tier1).
After that you can easily, within GSA ,create a campaign that builds say 50 PR1 or above links to your tier2 links.( This is your Tier 3).
Make sure your anchor diversity is set pretty high in GSA and you control the number of links per day and also the diversity of the links.
You could even, and this is a matter of opinion, and it all depends on your blog and its competition, your domains age, and where its currently ranking after you've finished the tiered structure I posted above, you may want to consider building 5-20 PR3 or PR4 or higher links per day with GSA directly to your money site. I am sure others will chime in telling you im completely wrong and not to listen to me if you want your site to stay in the top 100, but I do know one thing for a fact that this has proven to be successful for me more than just once.
I am sorry if my grammar and everything kinda just ran together and it was hard to comprehend or understand but its really late and i've had a long ass day...
To SIMPLIFY - Moneysite ||||TIER 1--web 2.0s with manually written high quality content linking back to Moneysite|||| TIER 2--- 20-30 PR 2-3 or ABOVE links a day to each of your Tier 1 Web 2.0s ||||||||||| Tier 3 ---- 40-50 Links per day PR1-2 Or Above to each of your Tier 2 Links |||| And then I also suggested, that optionally, you could go ahead and build some links directly to your money site with GSA also, but if you decide to do that I wouldn't build more than 5-10 a day and make sure they are PR4 or above !!
Also, if you decide to do something like what I've suggested, then make sure you keep it constant. Don't build 10 links one day and 100 the next then 0 for the next 3 days. Keep it consistent, regardless of if your site dances around like its currently doing. Keep it consistent and if you acquire good quality targeted links eventually your site will settle ranked much higher than previous.
Also, on links pointing directly to your money site, I would suggest you don't use forum links, guestbook links, image content sites, as these are sort of low quality links. Focus more on article sites, social networks, video sites, and bookmarks. Also I would suggest you use generic text at 15-20%. Remember , I would suggest only letting GSA acquire 5-20 Verified PR4 or above links per 1444 minutes directly to your money site if you opt to have it build any links directly to it. I would also suggest you do not let it post to sites with more than 10 OBL ( Out bound links)
For the links going directly to your Tier 1, which once again is your high quality manually written content directly relating to your money site, you want to be high quality also. I would suggest building 30-50 verified PR2-3 or above links per 1444 minutes to each of your web2.0s. For this tier you still do not want to use image comment sites or guestbook links as these sites tend to be spammed to hell. Forum sites are okay to use on this tier but I would use a low percentage of these. Set your generic text to 25-35% and don't post to sites with more than 20-30 OBLs.
For the links that point to the sites that are linking to your web2.0s , your tier 3, you can be alittle more reckless at this stage . I would suggest anywhere from 80-150 links per day trying to keep it PR1 or above and your generic text set to 30-35%. At this point the OBL and the link types don't matter as much, well I mean, they still matter, its just your money site isn't going to be penalized for crappy links at this stage.
Optional: You could also go one more Tier, to Tier 4, which would be links created to point to the sites that are pointing to the sites that point to your web 2.0s that of course, point to your money site. If you decide to go this far, then what your really doing at this stage is making sure all your links get indexed asap. For this, build lets just say, 300-500 links per day to PR0 or above sites with your generic text at 40%. OBLs do not matter.
Also you may notice that I repeated myself a bunch, but that's just cause information I thought that would be useful kept coming into my head so I wrote er down
. You may also notice that my links per day at each tier changed slightly from each example, this is partly cause I am retarded, and partly because you could be successful building 10 links at the first tier, 20 at the second, 30 at the third, and 40 at the fourth; and you could also be successful at building 10 at the first, 50 at the second, 300 at the third, and 1000 at the fourth. It is my opinion that this , lets say formula, varies greatly from site to site, based on your money site's keyword's competition.
No matter what you do, good luck, and keep things consistent. Don't give up, take action, and give it 1-3 months before expecting to see big changes. Keep focused and busy and you can count on one thing and thats your site climbing the rankings and reaching page 1.
Tim
p.s- In theory you could also see your site get sandboxed and penalized to shit but I reckon thats a risk everyone takes everyday around here using automated link building tools. The trick is to keep everything as natural as possible by remaining consistent, don't have 50 links one day, 5000 the next, and then 0 for the next week. Try not to throw around the red flags and you should be good
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I apologize for the giant wall of text.
