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Selling links brings no penalty from google, I have done it for a long time. There is a pagerank leak involved, but if your site is filled with quality content, you woud never notice it. I maintain 7 links on the homepage of one of my sites, and the income more than doubles my server costs.
Now, if you are running a "thin" site that offers very little original, and rarely updated content, then ads may be a bad thing for you. For me, I have never experienced a problem.
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