Free Learning About Business Online

What is AdSense?

Google.com earns most of its revenue by allowing other website owners to advertise on their search result pages. All this is managed through a program they call AdWords.

Now you can earn a share of the revenue that Google earns from AdWords by displaying these same text ads on your site. In other words, you're helping Google advertise and they pay you a percentage of what they earn.

This program is called AdSense.

Every website owner should at least consider the program. Even if your site is just for information purposes, you can still participate and make decent money with AdSense -- or at least enough to fund your website.

So if you are one of those people that don't like the idea of paying for a site, this is an excellent way to earn your money back and then some.
How AdSense Works

Don't like to read a lot of text? Watch my 4-minute video on how AdSense works.

"Is Google Crazy?"

I know what you're probably thinking...

"What's the catch here? Why would Google just give away money advertisers are paying them?"

The answer...

Because Google is very smart.

If you understand how AdSense works, you will see that it's a win-win situation for everyone involved, and the bottom line benefits Google. Let me explain...

Since the advertiser's ads are now being displayed on more web sites all over the internet (instead of just Google's site), they are getting much more exposure. More exposure means more clicks and even more traffic for their site over a shorter period of time.

This is good news for Google because the more traffic the advertisers receive, the faster their advertising funds are used up.

Remember, they get charged every time their site gets a visit; and of course, it is Google's hope that they'll continue to keep funneling more money into their account for more ad exposure.

What an ingenious way for Google to increase the amount of money they earn from advertisers while building loyalty with website owners (like us) who are now getting paid to help them advertise.

I have been receiving monthly checks from Google since 2003, and I've read numerous success stories of websites earning 5 digit incomes per month with AdSense.

Now, I will admit, a 5-digit commission in a single month is probably not the norm for most participants.

I promote AdSense on three of my websites and my checks have been as high as $4,500.

The more information you have, the greater chance you have of attracting free search engine traffic. That's why it's so very important you choose a topic you have an interest in so you can keep building and building.

My checks weren't always that large. I think my first month's earnings in 2003 totaled less than $20. However, I kept getting more and more search engine traffic by adding more content and the checks slowly began to increase. I had no idea it would grow to anything like this.
"How Much Can I Earn With AdSense?"

Google does not disclose exactly how much you'll earn per ad that is clicked.

The commission you receive per click depends on how much advertisers are paying Google for the particular ad. You will earn a share of that amount. I've heard of earnings anywhere from 2 cents to $15 per click.

So it is logical to believe that keyword phrases like debt free, employment, make money, mp3, sex, etc. will earn you more per click since these are highly competitive keywords that are searched for quite a bit on the web.

Advertisers generally pay more for popular terms because they are searched for more.

Even though Google will not reveal how much you are earning for each ad that is clicked from your site, you can still login to your account at any time and see the total amount of revenue you've generated that day, week, month, year, etc.

For example, if you see that you've made $12.60 today from 9 clicks then you can calculate that your average click-thru commission was $1.40 per click. That's as detailed as their stats will get. Also remember, that's only an average. You won't know how much each specific ad brought in.

The amount you'll earn also depends largely on the amount of targeted traffic you receive to your own site, how well the ads match your audience's interests, the placement of the ads on your pages, and of course the amount you receive per click.

Ideally, you should create a site on a topic you know a lot about. That way you'll have a much easier time creating a generous amount of content on that subject.
Why I Believe AdSense Works So Well

For years, website owners have tried to make money from their sites by putting up banner ads in hopes of visitors clicking them. The problem with banner ads is that the Internet audience is so immune to them, people do not click on them anymore.

When's the last time you clicked a banner ad?

...Exactly!

Second, in order for the web site owner to earn money from that banner ad, usually the web surfer that clicks has to purchase something. With AdSense, your visitors just have to click the ads. They don't have to purchase a single thing.

Third, most people that use banner ads do not do a good job of matching the ads to the website's content so the click thru percentages are dismal.

With Google's AdSense, not only are you displaying text ads, (which tend to receive a much higher click-thru rate than banner ads), but you are displaying contextual ads that match your website's content....thanks to Google's advanced technology.

Lots of times people think the ads are part of your site's content so they click because the information is relevant to your site. Whereas with banner ads, they often have little relevance and people tend to ignore them no matter how much they flash and fly across the page.
Creating Your Website for AdSense

Before you even begin your site, make sure you've come up with a topic that you feel you know plenty about. That way it will be easiest to write a lot of content.

The more content you have, the better chance you have getting accepted into the program. Also, the more content, the greater the earning potential. AdSense is nothing but a numbers game. If you want to make a lot of money, prepare to write a lot of content.

Now let's talk about building your website. There are two ways you can approach this:

1) Do it Yourself (DIY) from scratch

2) Use Site Build It! (SBI!)
The Do It Yourself Method

I've actually used both methods for building my site and there are advantages and disadvantages to both.

If you use the DIY method, you will have to go and register a domain name (yoursite.com) and then sign up for a web host and build your pages. You can either learn HTML or buy some kind of web editor like Microsoft FrontPage to build your pages. That's the method I used to build this site.

Averaging between $7 and $15 per month, the DIY method is usually the most cost friendly of the two but you are mostly on your own in terms of learning how to create your web pages and adding the AdSense code to your site.

Web hosts are generally there to house your site. They don't specialize in helping you market and optimize your site for the search engines to help you get traffic. So don't expect a lot from them in terms of helping you market your site.

This is not necessarily a bad thing. I had to learn how to build this site on my own and it wasn't very difficult.