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Hello SEO community.  I have started an online marketing company that focuses on a specific niche and have been researching how micro sites can be beneficial for SEO.  For example the "Nifty" presentation mentioned how micro sites are going to be key for local seo. However I have also heard that link networks are increasingly bad and are penalized by the Panda updated. While we are writing good, original content for our clients, I like the microsites because: URL - we can choose urls for the main keywords Content Focus - we can focus on specific content Ranking - these sites seem to rank pretty well Citations - we are able to give citations for our clients from these sites But am I worried, am I creating a link network?  Even thought I am putting out useful, good content, is this more hurting me than helping me?  Should I give up on this strategy or continue?  Help!

I just want to be sure, but if I install a Wordpress blog in a subfolder of a HTML site, Google will see that as one site, not two different sites, correct?  Even if there is two index files?