I'd have to say that Facebook and Twitter have actually helped my site's traffic increase. We are a NFL football site and our news forum is automatically sent to Twitter, Facebook as well as a handful of other sites. I think the key to making Twitter and Facebook work for you instead of against you is to have fresh and interesting content. The niche I am in is driven by up to the minute accurate news so people are always scouring any available avenue. We just aim to deliver that need.
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