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I hope that Squidoo wont be disappearing like you say might happen, I think for long tail phrases,
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I`m sure it won't dissapear to be honest, was just making a point that its not great to rely on 3rd party sites when your using them to make money. Much better to build up your own site, and then you are in total control. Although Squidoo won't dissapear, the case of Google banning them earlier in the year illustrates this point, other peoples spammy sites on squidoo made legitimate sites lose out.
I`ve found that it takes on average 3 - 4 months for Google to decide to "accept" a site, and to give it a ranking that pretty much stays as it is, without sending it rocketing up and down the index on a regular basis. It does depend on the area though, if the site is in a very competitive field it can take longer.
My first affiliate site created last christmas did really badly in the rankings when it was launched. It was my fault, I made a lot of mistakes because I didn't know any better at the time. In february, I gave up on it completely. As I learnt more, I made a few tweaks, and then from June left it alone completely. I was pleasantly suprised at the start of December to find it had risen to position 4 in google on an incredibly competitive term, and started doing a decent amount of commissions. As it has no new content all year, and was untouched since June, this was largely just based on the age of the site.
Just be patient, and you results will settle down. Unfortuantely theres nothing you can do to speed the process up, its just a case of waiting for Google. Once they have settled, unless there is a major algo change, they should stay there.