depends on whether you abuse it or not and how high a profile you have.
payforpost had many issues come up as the bloggers were being paid to review products by advertisers. this defeats the purpose fo a blog, an unbiased, nonpartisan personal opinion of whatever or even a daily diary. I don't believe that google is penalizing anyone for this at the moment unless they get on their radar.
lets say i have a website that sells SEO services. I create an external blog about SEO. If I write about how great i am and just about my company, thats a splog.(I'm selling) If I write about seo technigues, online marketing and my opinion on current trends, and just reference my site with a BTW link, perhaps in my sig,(I'm opinionating) thats a blog.
I believe the latter has more value.
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