Make Money Online

How to make money online.

Tuesday, May 02, 2006

The Adsense Formula

To make money online with ads program, we first have to understand how we are payout. Here is the adsense formula:-
Income per ad= Cost Per Click X Fractional Payout Rate X Click Through Rate X Page Impression X Appearance frequency

1.Cost Per Click
The price the advertiser is bidding to place an ad under the AdWords program and is determined by a complex real time automatic auction process.

2.Fractional Payout Rate
The percentage of revenues that Google pays out to AdSense partners. This figure is not disclosed by Google however, anecdotal evidence suggests the payout rate is good.

3.Click Through Rate: Already mentioned previous post.

4.Page Impression: Already mentioned.

5.Appearance frequency
The number of times a particular ad appears on your page.

Note: Some factors in the equation are uncontrollable by us, such as Fractional Payout Rate(Not disclosed by Google) and Appearance frequency. In order for amateur blog to make money, understanding this formula is crucial.

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