AdSense is Stupid When... - Many SEOs will...
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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.
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