To make money with Google Adsense, you should first know about Google Adwords. Google Adsense
and Adwords go hand in hand. In fact, other companies such as Yahoo and MSN also have Adwords programs as well as
the equivalent of Google Adsense programs. Let's examine what Google Adwords program is.
Understanding Google Adwords system
Google Adwords is a system by which a marketer can promote his products by way of what is called
a pay per click (ppc) system. The marketer's ad is placed on the search engine pages and pages of any websites with
related content. The marketer will only pay for the ad if somebody clicks on it. The payment can be anywhere
from a few cents to a few dollars, depending on the competition for the keywords to that ad.
For example, if John has an ebook on 'how to make money online' and wants to promote his ebook.
John can set up a Google Adwords account and tell Google Adwords that he wants to pay $5 a day for the promotion.
John then writes ads about his 'how to make money online' ebook and submit to Google Adwords. After that, John
waits. His ads will be displayed on various websites that Google sees as having related content. In another word,
they will be on web pages with keywords 'making money online', 'online money making', 'online home business', etc.
When someone clicks on John's ad, John will have to pay Google Adwords. If no one clicks on John's ads, then John
pays Google Adwords nothing.
The connection between Google Adwords and Google Adsense
In addition to showing these ppc ads on Google's search engines, Google offers marketers the
opportunity to also have these ads shown on what they call content sites. These are web pages hosted by various
people all over the Internet. Whenever these ads are displayed and somebody clicks on one of them, the person
running the ad is also charged for the click, just like with the search engines. However, there is one difference,
and that's where Adsense comes in.
On these content pages, since they are owned by various people and not the search engines,
Google gives the owners of these content pages a chance to earn some money from these Adwords ads. If they place a
certain code on their web page that identifies them to Google as an Adsense customer, each time a visitor clicks on
one of the ads, the owner of the page gets paid a percentage of the fee paid to Google.