Good discussion

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Has anyone charged a nominal fee (one-time or on-going) for people to submit and manage their own site link(s) successfaully?I tried this on my Flash showcase for the first couple of years and have to agree with pugdog, unless you can build in as much automation for the transactions as possible it's difficult to justify the time you spend on it.
A far better revenue earner is Adsense IMHO. Now that they've introduced site specific tracking (Channels) and if you use it in conjunction with an Adsense stats tracking script like (http://www.adsensetracker.com/) this allows you to experiment with colour schemes, placement etc. to find the best click through percentage for your site.
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There are exceptions, but making very substantial (which I define as over $10,000/month) income is quite difficult. And making thousands in a non-adult link farm is just incredibly difficult. Possible, of course. Sell Viagra ;) There are a few examples of link based sites (using LinksSQL) that I would estimate are earning the figure you quote a month webslicer, the thing is these sites are well established (been running for years) and are recognised as the strongest source for their topic, be it server scripts, middle east news, Flash source files etc.
One the whole though id say the people who are the most successful at web site publishing (not necessarily using LinkSQL) are the ones running over 20 sites spanning diverse topics (each of which brings in a modest amount - on average about $500+ each month per site)