>> "They click on them because they are in front them, not because they necessarily like seeing them."
You really credit your users with that much intelligence eh? That given a link, they'll click it?
This is not the formula:
* Create something * slap on adsense * profit!
It's about seeing where advertising may be useful for the user. For example, say you had a 'betting odds' page showing some stats on what odds are available, it'd make obvious sense to have some sponsored links to betting sites if the user wants to place a bet. That is a net win for the user, you, and the betting site - look at expedia etc. Advertising done right is useful for all parties. Done wrong, it's useless for all parties.
4 figures a month from negligible traffic was my point. Larger sites are obviously making a lot more. Scaling with advertising is easy enough if you can grow the traffic.
I'm not arguing with your reasons, I'm just saying to others, don't believe every startups experience of advertising is the same.