Tuesday, 3 April 2012

How much can I make with Google AdSense and how do I get started?

You’ve seen the nutty claims by so-called “internet experts” that strategies and programs they have devised enable surfers to earn thousands of dollars within a matter of days! Or minutes!! No such thing. However, there are several lucrative programs that can provide an extremely generous income with comparatively little
effort – Google AdSense is absolutely one of them. But it takes some time, and it takes some planning, like anything real does.

To start understanding the potential, think about how you make money with this program. Each time someone clicks an ad on your pages, you get a percentage of what Google is paid for placing that ad.

Revenue (or Income) from an Ad = Clickthrough value of the ad * Payout Rate * Clickthrough rate of the Ad * Webpage traffic * Frequency of Ad

In the above equation, Clickthrough value is the amount the advertiser pays per click for the Ad (this figure varies); the Payout Rate is the percentage of revenue to be paid for every click fixed by Google (this figure varies); Clickthrough rate is simply the number of times the ad is clicked on in a certain period of time divided by the number of times it is displayed during the same period; Webpage traffic is the number of visitors to your website; and Frequency of Ad is the number of times this particular ad appears on your webpage.

Let’s put some figures into the above equation and see what the income is. The figures below are for a single day:
Clickthrough Value -30 cents or $0.30 (The advertiser pays 30 cents per click for the Ad, to Google)

Payout Rate - 50% or 0.5 (This is an assumption based on what many experts believe to be the current payout rate for most deals)

Clickthrough rate of the Ad - the ad is displayed 100 times within the day and clicked by 9 people - the clickthrough rate would be 0.09

Webpage traffic - 150 visitors during the days

Frequency of Ad -100

The Income per day from a single ad would be = 0.30 * 0.5 * 0.09 * 150 * 100 = $202.5

If you consider this to be the average income per day, the total revenue generated within a month would be more than $6000. This is incredible, considering you basically did nothing to earn that money. We know of cases where people have earned even more than $25,000 a month with AdSense, which is a large sum to anyone.

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