While reading through the various links that came through my GoogleReader page today, I came across this one… and I quote:

“Let’s see if I have this right. Google places links to other people’s web sites on my site and they pay me for each hit. WHY? What’s in it for Google? How does Google know if the hits are coming from me…just to increase my check from them?”

It was then and there that I decided to write this article, so Ralph, here you go buddy!

If you look down the right margin on this page, then again at the bottom (and probably several more locations as well) you’ll see links grouped together with a small tag line at the bottom that says, “Ads by Google”. I have reserved these spaces and use a Google AdSense component to display these links to other people’s web sites. In return for letting them use my screen “real estate” Google pays me a few cents per link clicked. That’s pretty much how AdSense works…in a nutshell. But now the better question of Why? What’s in it for Google?

I have forgotten who said it but I think the quote goes, “If in doubt, follow the money.” Well that certainly applies in this case. Google is in business to make money, right!?! In addition to AdSense, Google has a program called AdWords. People with websites that want people to visit their site (eg, Joe’s Pumpkin Patch) create an account with Google AdWords and bid on certain key words (eg, “pumpkins”). When a website (like mine) mentions that keyword (pumpkins) frequently enough, and has space reserved for AdSense ads, then my site would display an ad for Joe’s Pumpkin Patch. Now, when Joe setup his account with AdWords, he agreed to pay $.05 to Google every time somebody clicked on a link to his Pumpkin Patch website. Google in turn pays a portion of that revenue out to the websites that display the ads. And there you have the magic of Google Advertising!

And finally, Google knows the hits are coming from my site because the link doesn’t go directly to Joe’s Pumpkin Patch, it goes to Google, THEN to Joe’s website.

Now don’t think Google is the only player in this game, or even the first. Yahoo! (and others) were doing it long before the Google search engine even went live. Google has however become the top dog for many, many reasons.

So this non-authoritative, non-comprehensive, (yet lengthy!) post leaves us with a couple of take aways.

First, create a Google AdSense account and get some ads on your website/blog!!! It is FREE and only stands to make you some money. Worst case, it won’t cost you anything and you won’t make anything.

If you have a website to promote, use Google AdWords. There are literally volumes out there on picking the right keywords, how much to pay, etc. Here are a couple of good places to start:

AdWordsHowTos

Besting AdWords
(This site makes EXTENSIVE use of AdSense advertising!)

Earning Thousands With AdWords

And finally, this is just the beginning! There are hundreds of ways to make money off your site/blog. None of them may make you rich by themselves, but as I’ve always said… nickles make dollars! Happy hunting and good luck!!!

-Thom

If you’re not really into AdWords, AdSense, selling on the web and my WebMoney series, this won’t make much sense (or is it cents?) to you, so you have my permission to skip it now.

If you are/have then here is a great article on maximizing your landing pages by Jon Rognerud. It comes from his blog SEO World.

Enjoy.

- Thom