The mechanics behind Adsense are quite simple.  Let’s illustrate through an offline example.

You get home from work and excitedly settle on your couch to catch your favorite television show.  Let’s say it’s Desperate Housewives (cleverly written series, by the way.)  You’re so into the drama between the protagonists when all of a sudden, the program has to go to a commercial break.  You impatiently sit through 3 minutes of advertisements waiting for the show to resume. You want to hate those darn commercials but you just can’t.  You realize that those commercial spots are what make the show possible.  Advertisements are the number one source of revenue for television productions after all.

The same principle applies for commercial websites.  Those established sites that have long been primary resources for popular information do make more money than what they spend.  They do this through advertisements. Notice those big banners promoting various products on the pages of your favorite website?  They are quite possibly the bread and butter of that online venture.  They pay for the webmaster, the content writers, the graphic artists, and their kids’ college plans.

These sites earn in either of two ways.  First is by selling the spot for a periodic fee.  And second is through a method called pay-per-click, meaning they get paid every time a visitor of theirs clicks on the banner advertisement.

This is how a search engine site like Google earns profit as well.  Have you noticed the advertisement links that appear on the right side of the results page after each search?  Google gets a certain amount every time the user clicks on any of those links.  Considering that millions of people use Google everyday, you’ll have a rough idea on how much the site can really earn.  We’re talking about millions, and perhaps, even billions in revenues!

And now with Adsense, Google allows you to have a share of the pie. Adsense ads are just like the ads on Google, except for the fact that they will be on your site instead.

Now before you complain about those unsightly ads that you feel will just clutter your site with things that your visitors will not be interested in anyway, let us first discuss the main selling point (aside from the earning potential, of course) of Adsense.

You see, Adsense will not just assign an advertisement at random.  Well, they will, actually, but those ads will be relevant to the content of your site. Suppose you have a site about dogs, with pages dedicated to the proper grooming of those adorable canine pets.  Adsense will assign advertisements that are related to the topic of your site.  Every time a page of yours is viewed, your visitors will see links to dog food, dog training supplies, dog vaccination, and the like.

Amazing isn’t it.  But wait, there’s more!

Most certainly, your visitor should be a dog lover.  She probably has a new puppy herself.  She’s browsing through your pages, looking for some tips, and reads something about specialized dog combs being effective for her canine buddy’s hair. And since your site is enrolled with Adsense, advertisements that are contextually related to dogs shall appear on your every page.  And your visitor will see an advertised shop, click on the name, and voila!  You earn!

Granted that the payment per single click is very minimal, consider the possibilities if you have thousands of visitors to your site everyday and most of them click on the ads on your pages.  Do the math!

Additionally, Adsense offers the following benefits that are quite generous for something that has so much potential:

• Adsense is free.

• Adsense is easy to use.

• You will never run out of advertisers.  You will never find yourself having to look for them, which was quite a problem during the pre-Adsense days.

• It’s passive income, meaning, once everything’s set, you can earn even when you’re offline.

• Being associated with Google, and legally speaking, being a Google partner, will add to your site’s credibility.

Earnings have been reported from as low as $0.14 per month to as high as $15,000 per month. Remember again that this is passive income. But In the Adsense battlefield, knowledge is power, and knowledge will earn for you more profit.

This knowledge is being shared right here on The Adsense Almanac.

This entry was posted on Tuesday, June 9th, 2009 at 5:00 pm and is filed under eBooks & Reports. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.