The guys in Santa Monica Bay tie up their terminal tackle in this manner, so it must be suitable because they really catch the fish. The important part of this technique, explained to me once by an old veteran, is to tie in the dropper as long as the distance from the knot to the sinker. If you have a 2 foot dropper the distance from the sinker to the knot must also be 2 feet. Don't ask me why. Maybe the sinker bouncing along the bottom scares the struggling bait in such a way as to attract the butts.
Knots are important.
Jed Welch came up with a knot that allows the front hook on a fish trap to be adjusted up and down to fit the bait length. This way you can hook the bait in the tail and then slide the front hook to a perfect entry through the baits nose. A barrel knot or a surgeons knot can be used for the leader, but if you use the surgeon knot it's best to have both lines of equal breaking strength. With different test lines the smaller test lines seem to break off easily with the the surgeons knot, especially if the smaller test is tied into the standing line. Also if you use the surgeons knot tie the hook to the standing line and place the sinker on the addition.