Effect of too many sponsored links/posts

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Google penalizes blogs that have too many sponsored posts or links. I have heard and read from many bloggers that they have lost their PR(some from PR 3 to PR 0). This ofcourse affects your site’s SERP(Search engine results page). Bloggers who have registered for services like Paid to Write need to maintain a ratio of 5:1 ie they need to have five non-sponsored posts for every paid post/review that they write on their blog. Bloggers who essentially create blogs for just posting sponsored links or PTC ads will find it almost imposible to achieve a high PR. But as far as I know it doesn’t affect Alexa ranking as they follow a different policy.

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