What is Google affiliate programs
I have seen many people referring to the Google Adsense program asGoogle Affiliate Program and it’s true because Adsense is a contextual pay per click program which is part of Google. This Google Affiliate Program is based on the pay per click model that means as a publisher you will be get paid some amount of money (as bid by the advertiser) to your Adsense account, when visitors click on the ads appearing on your website.
So you must be wondering why Google will pay you when someone clicks on ads. Google initially started Adwords to entertain advertisers so they can display ads on Google sidebar. The advertiser has to bid a certain amount of money that they will pay when someone clicks on their ads in Google. Later, to display the advertiser’s ads on various websites, Google started the affiliate program known as Adsense. In this program, Google displays the advertiser’s ads on publisher’s websites and when someone click on the ads they pay some portion of the bid amount to publisher and the rest they kept themselves. So you see its a win-win situation for Google, the advertiser and the publisher.
The key to success with Adsense is the placing of ads on pages that are receiving high traffic for high demand keywords. The higher the cost-per-click to the advertiser, the more you will receive per click from your site. Obviously, it does not pay to target low cost-per-click keywords and place them on pages that do not receive hits.
One of the most impressive advantages of using Adsense is it never run out of ads because of the large number of advertisers associated with the Google Affiliate program.
Another great benefit of using Adsense is that you can control the look and feel of the ads appearing on your website. There are various ad formats available to choose from based on your need and requirements.
You can also target a particular section of your website to display relevant ads based on that. The most important part is its 100% free to join. That means you can show ads that interest your website visitors.
Who will benefit most from Google Affiliate Program
A website with lots of useful content will benefit more from this program resulting in more revenue. If you are one of those who runs a website with useful content and receive a decent amount of traffic the Google Adsense program is for you.
The amount of money you will make from Adsense depends on following equation:
Revenue (or Income) from an Ad = Clickthrough value of the ad x Payout Rate x Clickthrough rate of the Ad x Webpage traffic
In the above equation, clickthrough value is the amount of money advertisers bid to pay per click on the ad. The Payout Rate is the percentage of the amount Google has set to pay to the publisher, Clickthrough rate of the ad is the number of times the ad is clicked on in a certain period of time divided by the # of times it is displayed during the same period; webpage traffic is the number of visitors of your website.
Let’s put some real figures in the above equation by taking an example:
Clickthrough value of the ad: $0.40 (The advertiser pays 40 cents per click on the ad to Google)
Payout Rate: 50% of the amount Google receives from advertiser (this is not the exact figure just an estimate based on my knowledge and advice from internet experts).
CTR Rate: 20% (Ads is displayed 100 times and clicked by 20 people)
Webpage Traffic: 500 Visitors a day
Revenue from an Ad will be: 0.40 x 0.5 x 0.20 x 500 = $20/day that means $600/month and $7200/year revenue from Google Affiliate Program “Adsense”.
