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I've been doing this, but at the sentence level with my database-driven sites for sometime now.
Hypothetically, let's say I have a large database site that sells ipod accessories... The database will have info about each individual product, a title, and a heading already supplied by the website I'm an affiliate for. The problem I've run into is that there are a lot of other people out there that use the same product descriptions etc, but also, there's not enough content for a stand alone page.
I will write (or have someone write) about 40 questions, statements or both that relate to ipods. I then place an include that randomly picks between 10-15 of these and displays them as content on each page. This way, when a spider comes through, they see fresh content and know to come back soon, and they see 20,000 pages of original content.
The text will look something like this:
Looking for the best ipod accessories? Then mybigassipodsite.com is for you. Do you have a ton of MP3's that need a new home? Are you tired of being the only person without an Ipod?
You get the point. Now imagine each page having this content on the page somewhere. The content is relative to the page, not overstuffed, and when a user comes to the site, it still make sense to where they know that they've come to a place that they can buy ipod's, ipod accessories, etc.
This method helps me get 1000s - tens of 1000s of pages indexed and STAY indexed because of the unique content which is relevant. As long as you don't keyword stuff, or write content that a user cannot decipher, then you should be safe.
Optimize for the engines, but write for users.
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