Blogging with them is the same with other paid blogging companies. They basically advertise on blogs. They help connecting advertisers with bloggers. Bloggers would write opinions about a particular product or just any neutral write-ups and linking the url of the website of the product or service with the anchor texts. In a way, this will increase the reach or clicks of the product's or service's website.
So far, I've made two posts with Smorty and have been paid for ads on blogs.
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