You may use this image in your ezine or website if you choose to publish my article. Click here to see the picture full-sized.--- Kamau Austin

There are times Google's heralded ad affiliate program isn't in
your long term business interest.  Oh no I said it!
 
AdSense isn't the unstoppable revenue engine for every
eBusiness.  Before I am taken out and flogged by the eCommerce
pundits -- please let me explain what I mean in my defense.
 
I make revenues from AdSense at a very high click-through rate.
I experience high click-through rates with AdSense without
resorting to questionable tactics like tricking site users with
photos (the AdSense trick and tip dujour).
 
So my perspective is from one who has made decent income from
AdSense to fund aspects of his business like advertising
seminars -- and outsourcing to his virtual assistants. Yes,
AdSense is a legitimate and significant revenue source.  However
evaluate AdSense with some type of balance.
 
By now you may have heard about people like Joel Comm's six
figure income with AdSense, or Jason Calacanis of Weblogs being
on his way to generating 1 million dollars in AdSense revenue.
Google's Ad revenue sharing affiliate program for publishers
certainly seems to be an eSales Nirvana for many webmasters. 
 
But there are obvious and not so obvious times not to use
AdSense ads on your sites.  Let's list - examine - and explain
them below.
 
~~~~> 1. On Sales or Mini-sites
 
This is a no-brainer.  If you are trying to sell a particular
product that is important to your bottomline, you don't want
AdSense ads distracting your customers from either joining your
email list, or hindering your site's online sales process.
 
However I do see hybrid sites that are mini-sites or full scale
eCommerce sites, with AdSense at the bottom of their pages.
This might not be so bad since only 1% - 15% of your site
visitors will either buy from you or fill out a form.
 
The thinking with this approach is you might as well make money
from disinterested parties using up your server's bandwidth.
 
~~~~~>  2. SEO Business Sites
 
If your livelihood depends on search engine optimization or
marketing for a living you might want to think twice about
displaying AdSense Ads on your site.  I can tell you this from
personal experience.  I once was on top of MSN for search engine
marketing in my local area.  I concentrated on my local area
because I found people felt more comfortable hiring an eCommerce
consultant locally.
 
One day my site fails totally out of the MSN index.  After
intense study I noticed that I obviously had a filter on my site
from MSN.
 
I analyzed all the top ranking sites in MSN and noticed the only
difference between me and the other top ranking sites was I had
Google AdSense ads on my site.  Someone at MSN felt that my
AdSense ads, and perhaps to a less extent, my book on SEO, was
getting a free ride in the MSN search engine database.
 
In fact I noticed that there were no sites with AdSense ads for
at least the first 3 pages.  Plus the sites with AdSense were
only using 1 ad unit at the bottom of the home page (there were
very few of them in the top 5 pages).
 
I knew it was strange to not have AdSense ads on the top
Internet marketing sites.  This prompted me to scan other
industries where I noticed the same trend.
 
Many of the leading SEO gurus have sites that have been banned
from the top listings by the search engines.  It seems the more
visible you become, the more of a target your sites are to the
search engine auditors.
 
Some of my sites are still on the top of MSN with AdSense ads
but that doesn't mean they won't also be targets in the future.
 
Let's face the facts.  MSN and Yahoo! have competing ad networks
to Google's, and this competitive situation is rife for a
potential backlash against SEO sites with AdSense ads.
 
Many SEOs will point to exceptions to this position.  However
you have been warned!
 
Think about it, how long will MSN and Yahoo! sit back and watch
SEO driven websites use their search indexes to fund Google?
Did you know SEO in MSN and Yahoo(!) --- is much easier to
obtain.
 
Therefore optimized sites are creating an ad sales wealth
transfer from MSN and Yahoo into the pockets of Google!  It
won't be long before Yahoo! and MSN begin to devalue ranking on
AdSense sites in their databases -- if not outright ban them.
 
If you are in the search engine business stay search engine
neutral, or create multiple sites for different search engines.
 
~~~~~>  3. When AdSense Becomes Your Only Business Model
 
When you become so myopic in your thinking that you build a
business solely on AdSense revenue -- think again my friend.
Why build a business solely on the largess of Google?
 
I don't know if your realize it or not, but the sites making the
real big AdSense money usually have a following that doesn't
depend on the search engines.  Internet mavens like Chris
Pirillo or Joel Comm have been on the Internet a while and have
followings for their websites.  Therefore they can consistently
make six figures with AdSense.
 
These content powerhouses are an asset to Google and not the
other way around.  But do you think Google is going to sit back
and watch just anybody make big bucks off of their top rankings?
 
If you do a search on most keywords you will notice many of the
top ranking sites are news sites, .gov sites, or .org sites
these days.  The only exception is in industries where these
sites don't really exist like eCommerce industries (clothing,
shopping, etc.).
 
No doubt in most industries you will notice a conspicuous
scarity of AdSense sites in the top rankings.  In other words
don't bet your future fortunes on AdSense.
 
An IPO based on projections of AdSense revenue isn't in the
future for the average eBusiness.  Think of Google AdSense as
supplemental income.  Building a business solely on AdSense
revenue isn't just silly -- it's just plain stupid.  

Kamau Austin is the publisher of over ten websites. See more of 
his eCommerce and Search Engine Commentary can be found at: 
http://www.eInfoNEWs.com and http://www.SearchEnginePlan.com