I've rejected advertising in the past because of two simple reasons. Firstly anyone creating a social website should not have advertising as their primary revenue generator and secondly it does not work as a primary revenue generator.
Taking Facebook as an example Valleywag.com
reported that Facebook users click on an advertisement 0.04% of the time - yes, just 400 clicks in every 1 million views.
This however does not stop the high level of questions I receive about advertising and using it to sustain a project or website. Given that I am intrigued as anyone I have decided to place Google adverts on our home page and build network.
I will report back to you regularly with a status on that together with tips on how you can implement advertising in our product range.
Any revenues gained from Google adverts will go towards the costs of our hosting.