admin | 
06 30th, 2008| 
The most important thing you must understand how website revennue works is the sale factor. The ultimate revenue potential you can make from your website is directly conected to the amount of sales in value you can make. For example imagine you advertise a product with a banner that gets 1% CTR and 1% Conversions. That product costs 100$. The revenue per 1000 impressions is 10$. That 10$ applies to a product that pays you 100$ the value of the sale. If you use an affiliate program that pays 75% of the sale, that 10$ falls to 7.5$.
If you are a beginner or you don’t have time to select all the products by youtself or even making your own products, you are probably using a pay per click advertising system. Pay per click network pay some money but you could be making a lot more if you didn’t use such systems. I recommend you to be an advertiser for some time to understand thi point better.
The pay per click system for advertisers is a place where they spen 10$ and the amount of sales make them getting 100$ making a profit of 90$. They make all this revenue from your website, which means that if you sold your own product and featured your own links in your site you could be making more than 10x the amount of money you are making right now.
If you make 70$ using a pay per click network, your click comission was of about 70%. This means the network made 30$ and the advertiser spent 100$. If the advertiser makes 2000$ in sales from your website traffic, can you just imagine the amount of money you could make if the product was yours?
There is always the possibily of losing money if you don’t make any conversion, but if that happens for you, it can happen for the advertiser too and in that case he would lower his max bid and making pay per click less profitable, lowering the system profitability again.
Of course designing all your products, building the site and all that stuff takes money and time and for a single person this is impossible, but for those big websites that make six or seven figures with pay per click should think about this for a while.
Even if you can’t make your own product there are a lot places to choose other people products. CJ, Clicbank, Amazon and many more places.
The Pay per Click system is the best monetization only for those webmasters who can’t spend any time picking and tracking all the products by himself.
A good way to look at pay per click revenue is keeping in mind all the time (all the time!) that the advertisers are paying you to make a sale and they don’t want to loose any money. Since you must sell to continue getting profitable ads, remember that all the money comes from the costumer pocket, that is your visitors pockets so treat them like kings otherwise you risk loosing good ads.
Put yourself in your users shoes and try ti figure out what he wants, not what he needs, only what he wants and give him that. He should get useful info from your site and he should want to purchase the products that appear in your pay per click ads.
Google Analytics is a good way to track which pages are performing good and which ones aren’t. See which pages the user spend the most time and which ones the user spends the least time. See also which page or pages makes the user go away. You should remake that page or simply delete it.
Tags: Advertise, Advertiser, Advertisers, Advertising, Advertising System, Affiliate Program, Amount Of Money, Banner, Conversion, Conversions, Imagine, Impressions, Lot, Pay Per Click, Pay Per Click Advertising, Pay Per Click Network, Possibily, Profitability, Website Traffic