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Google AdSense is the Google program where you can host pay-per-click ads on your web site. When someone clicks an ad, you earn money. Simple as that.
Is it really as easy to make money with Google AdSense as many would lead you to believe? Now that I've become heavily involved with managing Google AdSense programs for my clients, I can see it's not all play and no work.
Unfortunately, a lot of people bought into the idea that there was a lot of easy money to be made and they are now finding out they aren't making nearly as much as they thought they would. Additionally, Google has a lot of prohibited practices when it comes to AdSense, and too many webmasters are finding out they violated Google's policies after the fact - often because they never bothered to read the AdSense policies in the first place.
Webmasters must not only comply with AdSense policies, but their web sites must also comply with Google's webmaster policies.
If you offer products or services on you web site, the first thing you'll notice when you begin hosting PPC ads is that many of the ads are coming from your competitors. Therefore, you'll want to put ads on pages that aren't earning you any money, or do like I did and not put ads on your site until you're so busy anyway you'd rather make a few dollars off of your competitors than to continue turning business away with nothing to show for it.
Google AdSense allows you to specify up to 200 URLs for sites you want to bar from placing ads on your pages. The problem is that most times you won't know the competitors are out there until their ads appear.
Google will not issue an AdSense payment until your earnings exceed $100. Unfortunately, there are loads of Google AdSense Forum entries about web site operators who accumlated $90 or more in click through earnings only to get banned from Google and not get paid anything at all before they ever reached $100. This may be because Google doesn't take a close look to see if you're complying with their guidelines until it comes time to pay you. So yes, there's a lot more to the story than meets the eye.
Yahoo and MSN have similar programs, although those programs aren't as well-developed as Google AdSense and there aren't as many available advertisers to display ads on your site. The fundamentals for making money are the same. You still need plenty of traffic, you still need high-paying ads, and you still need to design your site to harmonize with the ads to get people to click.
Now that you've got a website, how do you make money from it? There are at least two ways in which sites can make money:
I shall deal with the second case, "Selling goods and services", in another article. In this article, I will address the issue of how your site can actually make money from advertising.
If you look at many websites, you will probably notice that there are banner advertisements displayed on most pages. If you are a newcomer to the scene, you might think that you must either be a company or that your site must be famous before you can get advertisers, just as it is the case in hardcopy publications.
In reality, anyone with a website can get advertisers. While it is true that if your site is well-known, you may get companies contacting you to offer to advertise on your site, you can get advertising revenue even if you are just starting out and your site is relatively unknown.
The way to do this is to join as an "affiliate" of various sites, either directly, or through an affiliate network. An affiliate network is simply an intermediary where you can select from a variety of advertisers.
Before joining any program, you should probably be aware of the different payment schemes available.
Here, you are paid according to the number of times the advertiser's banner is displayed on your site. The amount you earn is typically calculated based on the number of thousand impressions of the banner (impressions = number of times the banner is displayed), often abbreviated CPM (cost per thousand, with the M being the Latin numeral for thousand). That is, $5 CPM means that you get paid $5 for 1,000 displays of the banner. In general, the amount paid is usually small, but it is easy to earn since everytime a visitor loads the page, you earn. This is known as a "high conversion rate". Needless to say, this method will allow you to automatically earn more if your site attracts a lot of visitors.
When you are paid per click, you are only paid when visitors click the advertiser's banner on your site. The amount paid is usually higher than the pay per impression scheme. Whether you get a high conversion rate here depends on the banner (whether it attracts people to click it), although in general, it has a higher conversion rate than the pay per sale method. A high traffic site will probably enjoy a higher click rate than a lower traffic site, although you will probably get better results if your banners are carefully selected to suit the target audience of your site.
While you will probably get the highest payment rates with this method, it has the lowest conversion rate of the three schemes. You will only earn if your visitors click through the banner and either purchase an item from the advertiser or take some other prescribed action (eg, sign up for a service). Like the Pay Per Click method, you get much better results if you carefully select your advertisers to suit the target audience of your site.
In general, to avoid wasting resources in issuing cheques for very small amounts, advertisers will usually accrue the amount owing to you until it reaches a certain level (such as $25) before they pay you.
You can find a list of affiliate programs and affiliate networks on thefreecountry.com's Affiliate Program page at http://www.thefreecountry.com/webmaster/affiliate.shtml
To join an affiliate network or program, simply go to the site and complete their online application form. Some programs will give you instant approval while others require a human to check out your application before it is approved. Once it is approved, you'll be given some HTML code which you can cut and paste into your web page. Note that some affiliate networks and programs will not accept you unless you have a domain name.
How should you choose an affiliate program? My suggestion is not to choose a program according to the payment scheme, but rather according to the kind of people who are likely to visit your website. For example, if you are targeting parents on your site, links to affiliates with educational software, books and the like may generate more revenue than banners that link to web hosting companies. The most important rule of choosing an affiliate program is to know your target audience.
Another point to consider is whether you really want to join every single affiliate program that comes your way. Some studies suggest that sites that make the most money from affiliate programs are affiliates of only a small handful of programs. Furthermore, concentrating your advertisements from one network may allow you to be paid faster. If you advertise for hundreds of different affiliate networks on your site, you may wind up earning only (say) a few dollars per month from each network. If your advertiser's minimum payment amount is higher than what you can earn each month, it may take you a long time before you accrue enough to be paid.
On the other hand, that formula does not necessarily hold true for every site (or every page on your site, for that matter). For example, if your site has a particular theme, and an affiliate network only supports one or two suitable advertisers, you might want to sign up for a few affiliate networks so as to get a greater number of relevant advertisers. After all, advertisements that are relevant to your audience are more likely to be taken up than general advertisements. (What's the point of putting banners from only one affiliate if nobody is going to click them?)
Advertising revenue is one of the most effortless way to earn money from your site. You merely have to put the banner there and wait for the money to roll in. (Well, okay, not quite. You will still need to have some visitors first before you can make anything.)
Why wait? If you already have a website, let it earn even while you sleep (literally). Every day you let your site "idle" without advertising is a day of lost opportunity.
All the best in your endeavour! Remember also to check out our other article, Increasing Your Affiliate Program Income, for more tips on earning from your website: http://www.thesitewizard.com/archive/moremoney.shtml
Copyright 2000-2003 by Christopher Heng. All rights reserved.
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