I responded to this post a while ago but I mainly commented on using video for PPC and squeeze pages. Well since then I've been using YouTube videos on my site. Let me tell you guys... the results have been AMAZING. I use certain URLs in my videos so I can track the success and one video made me about $450 in one month. That's just one example.
Video does build credibility and if you have a tutorial based site it's really effective because some people would rather learn by listening than reading.
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