Simply stated, Google AdSense enables website operators to place some code on their site that connects to Google's ad server content database and pulls keyword-relevant advertising onto the web pages. The webmaster gets paid a percentage of the fee that Google receives from the advertiser every time a visitor clicks on an ad. There is no charge for the webmaster to participate in AdSense. All costs are covered by the advertiser who participates in the AdSense sister program called AdWords.
Google's sends out digital “robots” which use proprietary algorithms to parse the host web page and analyze the content in an effort to determine what keywords are relevant. It reports its findings back to Google's ad server which then serves ads matching those keywords. Given that the entire process is automated, the “ad robots” do a pretty good job of getting the advertising content right most of the time.
The History of Google AdSense
Google AdSense has its roots in the old “Google Content-Targeted Advertising” program which they introduced back in March of 2003. Although this program was similar in concept to AdSense, there was no automated way of participating. Each webmaster negotiated a deal directly with Google, and websites that served less than 20 million page views per month were not welcome to participate.
As Google grew, they began to see how much money they were leaving on the table by excluding the smaller sites, which greatly outnumbered the sites serving over 20 million hits that were willing to serve other people's ads. Their answer to that problem was AdSense which has no minimum traffic requirements and is open to all sites meeting Google's content and decency requirements.
How much can you make running Google AdSense?
The answer to that question depends upon three factors:
1. How much traffic your site draws
2.How many visitors click on your ads
3.How much those ads pay per generated click
With some ads paying as much as $5 or more, it's possible that you can generate a serious income with AdSense. There are relatively well documented cases of some people earning as much as $500 per DAY and more. Numbers like that are rare exceptions however. Even so, there is no reason why you can't earn somewhere around $1,000 per month, or more, once you get the hang of it.
How to get started using Google AdSense
Make a visit to Google's AdSense Site (https://www.google.com/adsense/) and sign up. Make sure that you read their Acceptable Use Policy and that you follow their content requirements. Google has their own “AdSense Police” who will have no problem booting you out of the program if you fail to walk the line.
Using Google AdSense on your site is like collecting free money. There's no reason not to do it and potentially thousands of dollars worth of reasons to do it.
Fastest Easiest Way To Lose Weight
Most businesses are out to generate new leads. Their primary aim is to attract as many customers to their business as possible. As a result, all of their advertising and promotion efforts are modeled to generate a greater number of prospects. This, however, is a cardinal mistake that can spell doom for any particular business.
If the last sentence seems a bit too exaggerated, it is time for you to wake up and smell the coffee. I have personally seen the gradual decline in sales figures for many businesses trying to create new business.
The first impression is the last impression:
Let's look at the importance of the existing customer base from another perspective. Usually, the first purchase made by a customer is actually a test made by the buyer to evaluate your ability to deliver. And it doesn't represent the total capacity of a customer to do business with you.
If you are able to deliver as per your promise and in accordance with the customer's requirements, it is a sure-fire indication that the customer may return. The customer has faith in your product or service and there is no reason why you should not use this to you and your customer's mutual advantage.
Now, I state below a tried and tested method of dividing your marketing efforts for you to understand and implement. If you follow the this, you can rest assured that this course will be worth tens, even hundreds of times what you have paid for it.
1. Devote 60% of all your marketing efforts towards reselling to your current customers.
2. Spend 25% of your marketing efforts in converting dormant customers to active buyers.
3. 15% of your marketing should be devoted to gaining new prospects.
However, it is important to keep in mind that the above proportions may vary depending on the stage of development of your business. If you are just setting up your business, almost all your marketing energies will go towards developing new clients. These figures will continue to fluctuate for about two years, beyond that, your most lucrative profit center will be your current customer base!
If you actively persue follow up sales to your current customers, instead of treating them as one shot single sales, you will soon discover that your customers have a life time value (LTV) far exceeding the single sale. The life time value of a customer is defined as "the total value of your average customer over the entire period that they're likely to do business with you."
For example let's say that your first sale to a customer is generally $50. If you treat every customer as a single sale and do not make any follow up offers to that customer, then that will most likely be the lifetime value of your customers.
Now let's assume that you understand the lifetime value of a customer, so you continue to follow up with you current active customers and make them additional offers of increasing value and that your customers are on average active for a period of three years. Over that period of time your average customer buys $1,500 worth of products from you. Now the lifetime value of your customer is $1,500 instead of $50. Knowing this figure will allow you to much more accurately judge what you should be willing to pay to acquire a new customer.
There is one additional term associated with customer value that you should also be family with and that is Total Customer Value (TCV). You can think of total customer value as the lifetime value of a customer plus the value of the number of new customers they refer to you. Thinking of customer value this way will encourage you to develop some sort of referral system to encourage customers to refer their friends, family, or business colleagues to you. Realizing what the LTV of your customers is will help you determine how much you should be willing to spend to acquire referrals from your customers realizing that referral leads are your best leads with the highest level of conversion to active customers.
Treat your customers right, follow up with additional back-end product offers and establish a referral system and watch your business growth accelerate at lightening speed.
Both Capil009 & George Dodge are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
