Google AdSense might be one of the best ways to monetize your net traffic. People see those little 'Ads by Google' things and they mouse click like crazy. Or at least that's the idea. But have you ever given thought to where those ads are coming from? Well, have you ever heard of AdWords, the Pay-Per-Click program for people who want to publicise their products on Google.

Google grabs the hard cash from the AdWords' member's account, keeps some of the generated revenue, and gives the rest to you. How much is given to you and how much is kept is a state secret, but who cares; just as long as we're making money each month.

How AdWords Works

It provides pay-per-click advertisement to merchants who are may shell out anything from a minimum 05-.05 per mouse click all the way up to a maximal of a hundred dollars per click. Can you imagine anyone paying $100 just to have somebody mouse click on an ad?

Anyway, the adman joins the AdWords program and gets a command board similar to the one that we AdSense users get. They can write their ads, pick their keywords, and implement an advertisement budget. They get tools to track operations as well as to help them pick keywords. There are no each month minimum spends required and they can turn their ads on and off at will.

Once an admin is pleased with their ad, it gets released to the network and shows up on net sites like yours and mine. That's if the keywords on your site match the keyword requirements of the brand spanking new ad, of course.

You can not 'buy' your way to the top of the ad spots

Google doesn't push the people with the highest paid ads to the top of the SERP (Search Engine Results Page). They use a rather unique methodological analysis that takes into circumstance not only the maximal CPC (cost per click), but also includes a secret formula for determining an ad's arrangement based upon the number of clicks the ad receives. So, at least in theory, an advertisement at .05 per mouse click could raise above one paying $5.00 per mouse click if it's more popular with Google's audience.

I say 'in theory' because if the possessor of the $5 ad is paying attention then he or she will see that they are being bettered by a lower paying ad and do some good rewriting to get back up to the top where they belong.

Personally, I'm not sure that I have the grit to put a good deal of money into an ad hoping that people who mouse click on my ad will really purchase something, since I still have to pay Google whether I make a sale or not. But, as a dedicated AdSense user, I'm sure glad that my AdWords brothers and sisters have more nerve than I do. And you should be grateful as well.