Splogs are blogs created in large quantities and are often all automated. They are commonly RSS fed and built by the hundreds. They tend to have a large number of links on them. They aren't nurtured to grow naturally. They are just designed to target the engines, possibly make a few sales, and feed other sites. It's mass production of blogs. They are generally built and then forgotten about. Low maintenance sites.
For mainstream splogs, they are usually filled with no original content, or stolen content, and are filled with tons of links everywhere. The articles don't even have to make sense, just the links and keywords are important.
Regular blogs are most often hand written and time is spent on building proper links, are nurtured to grow, sometimes targeting specific keywords and phrases. They generally are not mass produced. Some are fed with RSS feeds or a mix between RSS feeds and handwritten posts. Time is spent on the blog to increase sales or even just to feed other sites. The links are kept under control. The posts actually make sense and are not stuffed with keywords. Like splogs, blogs target the engines, but it is done naturally and not artificially like splogs. Meaning that they avoid keyword stuffing, throwing random words in just for the engines, and things of that nature.
You can automate regular blogs as well, (such as loading a blog with prewritten posts for future updates), but it is how the content and linking strategies are used that make a difference. Regular blogs are generally unique with their content. Someone took the time to write a post, even if it is just rewording a post. With splogs, it isn't so much about the content itself, just dominating the engines through linking and keyword/keyphrase targeting.
As for whether a splog or blog is more profitable, depends on what you want to use each type of blog for. Yes, people do make sales from splogs. The theory being, more splogs out there, the more chance for a sale.
It's not that one type of blog is better than another. Each type serves a purpose. They can be used together. Some can be feeder blogs. Some can be used for linking. Others can be used to dominate a niche and/or particular keywords and phrases. Some can be built for the sole purpose of generating sales, and/or sell advertising. Both splogs and blogs have their pluses and minuses. Just depends on what the primary purpose of the blog you are going to build is, dictates which type of blog you wish to build.
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