Quality Article + Right Niche = High Adsense Payout

First before you can actually earn a steady income from Adsense, you have to think where are you going to get your traffic from. If you are thinking to bring traffic from articles, all you need to do is to write some articles. But bare in mind, 3 or 4 articles will NOT do the job. What you need is to steadily write and take your time. Remember time is money.

When you get to the point where you're having some success, or when you have some money to spen, my recommendation is to do outsource writing. You can get a 300 word article written for between $1 and $15 depending on the size of your order and the quality you want. If you have a site that will make $100/month once mature, it is easy to justify investing $100 in articles to get it started.

But the most important is you have to select niches with high paying keywords. Examples are weight loss, travel, acne, legal advice etc. You must not build sites with low CPC - like sports socks or cheese.

You can screen your niche ideas for CPC using a tool like the one at SpyFu.com. To see how crazy the CPC can get, check out this list of high paying keywords. http://www.spyfu.com/TopList.aspx?listId=3.

Now, you are correct that you will not get paid the AdWords CPC. When estimating AdSense earnings, I assume that Google will keep 50% and the content network will result in a 60% reduction from that. So, I assume that I can get a CPC of 20% of the AdWords cost. That is a rough estimate. It means that if someone is paying $5 for a click, I will get to keep a dollar.

If you are getting $0.01 for clicks, you are either targeting a low-paying niche or your account is “smart priced” due to low conversions or low CTR.

See, if you are trying to make money from AdSense, you need to understand some basic economics. The AdSense ad is on your site in the first place only because some business person is paying Google to get a click that will convert into a sale. Google's gross profit is the amount that Google get's paid for the click minus the cost that takes them to get the click.

What is Google's cost to get the click? Well, fundamentally, they need to pay for the people and machines that run AdSense, and they need to pay you for the click. That is why they care about CTR (Click Thru Rate). It costs them money to show the ad (computer time, bandwidth, etc). If they have to show an ad 100 times to get one click, they are bummed. That is why the penalize advertisers and publishers for low CTR.

So, the money they pay you is the amount they got for the click minus their cost and profit (basically). This means that if you want to get good money from your niche site using AdSense, you need to target high-paying keywords.

What do you think about AdSense? Are you having any luck making money with it?

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