Not the most brilliant of discoveries, but a connection certain people like to deny exists.  Traffic exchanges destroy your Alexa rank.  There is no point in arguing the value of an Alexa rank, much like Google’s page rank, it has no value in its own.  However, certain advertising companies use it to rank sites. If you do paid posts or sell ads through an agency, then ranking well in Alexa helps.  I’d rather get $60 a post than $5.  Look what happened to turnipofpower.com after the infamous asshat incident.  I went from an average of 450 readers a day down to 300 readers a day.  The loss of those 150 toolbar droppers turned out to be a huge positive.

alexa rank 1

Look at another former member of Entrecard, Lyndi from Nice2All.com.  She stopped using that traffic exchange a few days earlier than I did. 

alexa rank 2

The question is why?  My bounce rates, though improved, are still relatively high.  My two current sources of traffic, Stumble Upon traffic and Search Engines, have similarly high bounce rates.  Thus the theory that Alexa penalizes high bounce rates is out.  Stumble traffic is also social traffic, so you can’t say Alexa hates social traffic.  Conspiracy theories about Spottt vs Entrecard?  Wishful thinking, but not likely.

The answer must be the exchange of pageviews.  Say 100 people all have the Alexa toolbar.  If those 100 toolbar users load the same sites routinely, that would be detected.  It’s the reciprocal nature of the traffic exchange that is detected and penalized.  Google does something similar with pageranks.  If I link to a site, and that site links back to me, then the effect of those links is weaker than a one way link would be.

This is why my own social network,  CMF ADS won’t be repeating this critical error.  The only benefit of visiting another member’s site is the pleasure gained from reading it.  Sure, when we see something we like we advertise there, Stumble the post, Digg, Mixx, Buzz, or whatever social media seems appropriate.  But traffic exchange?  Never.