Look at this chart from Earners Blog.
Bombs away! However, I do believe that they will recover once they weed out the black hat and crap. Give it time, maybe next Spring, and we’ll see a Squidoo revival.
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The problem with Squidoo is it has almost no real users creating content that is meant to be consumed. Squidoo fell to the spammers and will not be able to extricate it from the dark (black) side. I will put money on this.