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Old 10-21-2009, 04:58 AM   #7 (permalink)
James81
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Quote:
Originally Posted by nin64 View Post
Hey... come to think of it...

Hmmm.... maybe there's a big conspiracy going on here...
lol

Well, Steve has said countless times that he was making about $10,000 a month just through google adsense alone. So, if there's a conspiracy then he was in on it.

Adsense is a numbers game. It's a matter of getting enough traffic onto your site that you get enough people who will click through your ads. Ad placement plays a big role in it, and you have to be pretty upfront about where you place them. Bigger = better, especially in a place where people can't help but notice them.

But here's the thing...most people simply ignore (or turn off) ads. So in order for adsense to be a profitable venture, you need to get enough traffic onto your site where it becomes profitable. It's the ole "for every 100 cold calls you do, you'll probably get 1 client" deal that you hear about in business. The profitability is in numbers. More traffic=more potential for clicks.

So, the idea behind adsense is based on how much marketing you do to get traffic on your site. If every hundred visitors clicks on one ad, and you make, say 10 cents per click (this varies based on the ad, btw), then you'll need a thousand vistors to make $1. 100,000 visitors per day, would yield $100 per day (or $3000 per month roughly).

So, considering Steve's site gets a couple hundred thousand visitors per day, it's no surprise he was making $10k per month with that traffic simply because of the sheer volume of people who funnel through.

And you know what? I'm typically the guy who ignores ads, but I HAVE clicked on some ads in the past. Most of the time they have been image ads to sites that struck my fancy. And most ads are based on the content of your site, so it's no surprise that if I am on a website that I enjoy the content of, that eventually I'm going to see an ad that strikes my fancy.

How does it work, though? Well, people pay money to advertise through google. Google takes a portion of the money they receive from those who buy the ads and gives it to people who put their ads up on their site. And since google only pays if you click, those who buy the ads only pay money if someone clicks on the ad. So if google is giving you 10 cents per click to display adsense, then they are charging someone else a higher amount per click to display their ad. People are willing to do that because it gets their website more exposure, which in turn gets them more traffic to THEIR page and more potential profit for whatever product they are selling.

It's pretty much win all around. Brilliant if you ask me.

But again, it's all about traffic. If you want to be successful with adsense, then you need to bring in the traffic. A low traffic website isn't going to make hardly anything from it. But if you manage to bring in traffic in a high enough volume it can become very profitable for you.
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