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But each author wants his or her own domain name. So I need to have small authorname.com sites that link to the larger site. What are dos and don'ts to keep my authorname.com sites from incurring the wrath of the SEs? Or should I embed the hyperlinks in graphics so that the SEs will not see a connection between the small sites and the mondo site?
Nos:
1. Redirects
2. Keyword stuffing (how many kws = a stuff?)
3. Content (how much content do I need, 2 or 3 pages?)
4. Cross-links between authorname.com sites.
larry.yourdomain.com, peter.yourdomain.com, etc.
Why do you think that SE's won't see hyperlinks in graphics? No matter how it appears - it remains the same tag in HTML, moreover though Google is reading JavaScript, Flash, etc.
According to some authors normal keyword density is about 1,5% and up to 3%, but this is just words. Actually your texts just should be real and thats it. Use keywords only there, where they won't make the text ugly. Consider stylistics, moreover though your site will represent the face of literature.
There is no definition for the quantity of content. Of course it should be not lesser than a passage, but sometimes one right phrase is quite sufficient. Care quality and do your best.
Why do you think that crosslinking will hurt your project? There are a couple of schemes that webmasters use to link inside and outside of the site. They are completely different and everybody tries to prove that their scheme works better... however both can get ranked high.
Good luck!