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Google Adsense Explained—Is It A Reliable Source of Income?

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For years now, Google Adsense has been touted as one of the sources of income online.

When you perform a little search about how to make money online, you’re bound to see at least three or more sites recommending you get started with Google Adsense.

But should you?

Should Google Adsense be your first strategy when it comes to earning a reliable source of income?

In this post, I’m going to dive into what Google Adsense is all about. I’ll share with you how it works, what potential it possesses, as well as the risks involved in it.

By the time you’re done with this post, you’d have a good, up-to-date knowledge of Google Adsense, when to use it to augment your income, as well as when to stay away from it.

Ready?

Let’s dive in…

What Is Google Adsense All About?

As the name implies, Google Adsense is a monetization strategy that was designed by Google.

Please pay close attention to the word “monetization strategy”.

Because there is this ongoing misinformation that’s been dished out that Google Adsense should be the first thing to focus on in order to start earning income online.

Nothing else could be farther from the truth.

To start earning with Google Adsense, there are a number of things you must first of all have in place.

But before I mention what those things are, let me first explain what it is in details…

Google Adsense is one of the “products” Google offer as a means of enabling people to monetize their digital assets.

Let me explain…

Google makes money by selling advertising to companies all over the world.

When companies buy advertising space on Google, they are paying Google to display information about the product or service the companies offer to the audience that might be interested in them.

The only problem is…

There is a limit to the space Google has to display all of those adverts.

So in other to effectively display the adverts of those companies to a larger audience, Google “rents” space on websites and software that a lot of people use or visit every day.

So when you sign up for Google Adsense, you’re practically giving Google the rights to display adverts of other businesses on your website.

And this is where the trouble lies…

Because displaying adverts on your site or app doesn’t necessarily mean you will make money.

Why?

Because Google operates a Pay-Per-click business model.

What it means is that Google will not charge the company for displaying their adverts. Google will only charge them when someone clicks on the advert.

So in other words, Google only makes money when people click on the adverts.

If the adverts are being displayed, and no one clicks on them, neither you nor Google makes money.

However, if someone clicks on any of the advert that Google displayed on your site, Google will pay you a certain portion of the amount it charged the company that is running the advert.

How much you’ll end up earning is dependent on the particular industry the company running the advert is based in, as well as how many people click on the advert displayed on your site.

How to Increase Your Income Potential With Google Adsense

One secret many beginners do not know is that Google charges different industries differently.

For example, let’s say company A is in the health industry, and company B is in the Insurance industry.

If both companies are running adverts on Google, Google will not charge them the same rate when their adverts gets clicked.

One will definitely be pay more for a click, than the other.

So if you want to increase, or even multiply your income with Google Adsense, the first step is to make sure your website or app is based in a industry that pays a high rate per click.

This process is called “Niching”.

If you base your website in an industry that pays $0.01 per click, it means you’ll need 100 people to click on the adverts on your website before you earn your first $1.

And in other to make $100 every month, you’ll need 10,000 (ten thousand people) to click on the adverts displayed on your site every month.

This is one of the challenges most people face, especially when trying to make money with Google Adsense…

Because the honest truth is…

Growing your website or app to the point where 10,000 people visits it every month is not a small feat.

And I’m oversimplifying here…

Because if you actually need 10,000 people to click on the ads on your site in order to earn an income, you’ll need to attract as much as 50,000 to 100,000 people to your site every month…as not everyone who lands on your website will clicks on your ads.

In fact, many of the people visiting your website will only visit it for the information they seek.

And once they get it, they’re off…without clicking on any advert at all on your site.

However, if your website is based in a high paying industry, you’ll need a lesser number of people to click on the adverts on your site in order to earn a meaningful income.

For example, if your app or website is based in an industry that pays $10 per click, to earn $100 every month, you only need 10 people to click on the adverts displayed on your site.

This will be much more profitable for you in the long run as opposed to basing your website in a low paying industry.

Passion VS Money: Which One Should You Choose?

As explained above, basing your website in a high paying industry will make you more money than basing it in a low paying industry.

And this poses another problem…

Because you might not be an expert or authority when it comes to the industry that pays higher.

For example, you’re passionate about sports.

You live, breathe and talk about sports all the time.

But when trying to make money online with Google Adsense, you discovered for example, that “Law” is paying higher than sports.

However, the problem is you’re not a lawyer.

You’ve never been to law school before. You know nothing about law, and you’re not an expert or authority on the subject.

So how then would you make money?

This is one of the dilemma beginners face…

On one hand, they painfully discover that what they’re passionate about cannot generate a meaningful income for them. Doing it for monetization purpose will only lead to frustration.

On the other hand, they’re not an expert or authority on the subject that can make them meaningful income online.

When faced with this dilemma, what would you do?

A Better Alternative to Monetizing Your Website With Google Adsense

In order to solve the dilemma above, we recommend that our readers focus on alternative source of generating income online, at least at the beginning.

This is not to say Google Adsense doesn’t work.

It does…

Especially when you don’t use it as your primary source of income.

For majority of our readers, we recommend other monetization strategies such as affiliate marketing.

With affiliate marketing as your monetization strategy, many of the challenges you’d face under Google Adsense will be greatly reduced.

Why Affiliate Marketing Is Far Better Than Google Adsense As A Monetization Strategy

One big advantage with affiliate marketing against Google Adsense is the fact your income is not determined by a third party (which is Google, if you’re doing Adsense).

Rather, the amount you earn is determined by the company whom you’ll be dealing with directly.

In case you’re not familiar with the term affiliate marketing, you can read more about it here.

So for example, let’s say you’re passionate about sports.

And you discover that the average price of most sporting equipment and accessories are around $200.

With a little bit of digging, you further discovered that many of the companies manufacturing those products have an affiliate program, where they pay you 50% (fifty percent) of each sale when someone buys.

So what it basically means is that if someone comes from your site and buys that product from the company, they would pay you $100 for each sale.

And if 10 people comes from your website to buy that product, you’ve just earned $1,000 ($100 X 10).

This is where it gets interesting when compared with Google Adsense…

If the sports industry for example, pays $0.01 per click in the sports industry, if 10 people clicks on the advert, you’ll only earn $1.

However, when you’re getting paid for sales instead of clicks, if 10 people buys that product, you’ve just earned $1,000.

So as you can see, affiliate marketing pays more as a monetization strategy than Google Adsense for the same amount of work.

Truth is, the level of work you’ll put in to attract visitors to your site to earn an income with Google Adsense, is the same amount of effort it also requires with Affiliate marketing, even though affiliate marketing will earn you more money than Adsense.

If you want to do Google Adsense, we recommend you use it as your second or even third monetization strategy.

If you’d like to learn more about other sources of income online, we have a promo going on for our flagship training program. Click here to see if it’s still available for you.

Now It’s Your Turn…

I hope this article has helped imform you regarding Google Adsense as a monetization strategy.

Did you find it useful?

What’s the biggest eye opener for you?

Please let me know in the comments below.

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