QUOTE
Now that you've created a website,
how do you make money from it? There are at least two ways in which sites can make money:
I will address the issue of how your site can actually make money from advertising.
Making Money From Advertising
If you look at many websites, you will probably notice that there are banner advertisements
displayed on most pages. If you are a newcomer to the scene, you might think that you must
either be a company or that your site must be famous before you can get advertisers, just as it
is the case in hardcopy publications.
In reality, anyone with a website can get advertisers. While it is true that if your site is
well-known, you may get companies contacting you to offer to advertise on your site,
you can get advertising revenue even if you are just starting out and your site is
relatively unknown.
The way to do this is to join as an "affiliate" of various sites, either directly, or through an
affiliate network. An affiliate network is simply an intermediary where you can select from a
variety of advertisers.
Payment Schemes
Before joining any program, you should probably be aware of the different payment schemes
available.
In general, to avoid wasting resources in issuing cheques for very small amounts,
advertisers will usually accrue the amount owing to you until it reaches a certain level
(such as $25) before they pay you.
How To Choose An Affiliate Program
How should you choose an affiliate program? My suggestion is not to choose a program according
to the payment scheme, but rather according to the kind of people who are likely to visit your
website. For example, if you are targeting parents on your site, links to affiliates with
educational software, books and the like may generate more revenue than banners that link to
web hosting companies. The most important rule of choosing an affiliate program is to know your
target audience.
Another point to consider is whether you really want to join every single affiliate program that
comes your way. Some studies suggest that sites that make the most money from
affiliate programs are affiliates of only a small handful of programs. Furthermore,
concentrating your advertisements from one network may allow you to be paid faster.
If you advertise for hundreds of different affiliate networks on your site,
you may wind up earning only (say) a few dollars per month from each network. If your
advertiser's minimum payment amount is higher than what you can earn each month, it may
take you a long time before you accrue enough to be paid.
On the other hand, that formula does not necessarily hold true for every site (or every page
on your site, for that matter). For example, if your site has a particular theme, and an
affiliate network only supports one or two suitable advertisers,
you might want to sign up for a few affiliate networks so as to get a greater number of
relevant advertisers. After all, advertisements that are relevant to
your audience are more likely to be taken up than general advertisements. (What's the point of
putting banners from only one affiliate if nobody is going to click them?)
Automated Context-Sensitive Advertising
One of the latest trends in website sponsorship is to
sign up with an advertising network like Google AdSense
The advertising network automatically checks your web page and determines the most relevant advertisement for the page.
As a result, without much additional effort from you, you get advertisements targeted at the interests of your visitors.
As mentioned earlier, targeted ads tend to result in better performance and returns.
Please Do Not Reprint This Article
This article is copyrighted. Please do not reproduce this article in whole or part, in any form, without obtaining my written permission.
how do you make money from it? There are at least two ways in which sites can make money:
- Advertising Revenue
- Selling Goods and Services
I will address the issue of how your site can actually make money from advertising.
Making Money From Advertising
If you look at many websites, you will probably notice that there are banner advertisements
displayed on most pages. If you are a newcomer to the scene, you might think that you must
either be a company or that your site must be famous before you can get advertisers, just as it
is the case in hardcopy publications.
In reality, anyone with a website can get advertisers. While it is true that if your site is
well-known, you may get companies contacting you to offer to advertise on your site,
you can get advertising revenue even if you are just starting out and your site is
relatively unknown.
The way to do this is to join as an "affiliate" of various sites, either directly, or through an
affiliate network. An affiliate network is simply an intermediary where you can select from a
variety of advertisers.
Payment Schemes
Before joining any program, you should probably be aware of the different payment schemes
available.
Pay Per Impression (CPM)
Here, you are paid according to the number of times the advertiser's banner is displayed
on your site. The amount you earn is typically calculated based on the number of
thousand impressions of the banner (impressions = number of times the banner is
displayed), often abbreviated CPM (cost per thousand, with the M being the Latin numeral for
thousand). That is, $5 CPM means that you get paid $5 for 1,000 displays of the banner.
In general, the amount paid is usually small, but it is easy to earn since
everytime a visitor loads the page, you earn. This is known as a "high conversion rate".
Needless to say, this method will allow you to automatically earn more if your site attracts
a lot of visitors.
Pay Per Click (PPC)
When you are paid per click, you are only paid when visitors click the advertiser's banner on
your site. The amount paid is usually higher than the pay per impression scheme. Whether you get
a high conversion rate here depends on the banner (whether it attracts people to click it),
although in general, it has a higher conversion rate than the pay per sale method. A high
traffic site will probably enjoy a higher click rate than a lower traffic site, although
you will probably get better results if your banners are carefully selected to suit the
target audience of your site.
Pay Per Sale or Lead
While you will probably get the highest payment rates with this method, it has the
lowest conversion rate of the three schemes. You will only earn if your visitors click through
the banner and either purchase an item from the advertiser or take some other prescribed action
(eg, sign up for a service). Like the Pay Per Click method, you get much better
results if you carefully select your advertisers to suit the target audience of your site.
In general, to avoid wasting resources in issuing cheques for very small amounts,
advertisers will usually accrue the amount owing to you until it reaches a certain level
(such as $25) before they pay you.
How To Choose An Affiliate Program
How should you choose an affiliate program? My suggestion is not to choose a program according
to the payment scheme, but rather according to the kind of people who are likely to visit your
website. For example, if you are targeting parents on your site, links to affiliates with
educational software, books and the like may generate more revenue than banners that link to
web hosting companies. The most important rule of choosing an affiliate program is to know your
target audience.
Another point to consider is whether you really want to join every single affiliate program that
comes your way. Some studies suggest that sites that make the most money from
affiliate programs are affiliates of only a small handful of programs. Furthermore,
concentrating your advertisements from one network may allow you to be paid faster.
If you advertise for hundreds of different affiliate networks on your site,
you may wind up earning only (say) a few dollars per month from each network. If your
advertiser's minimum payment amount is higher than what you can earn each month, it may
take you a long time before you accrue enough to be paid.
On the other hand, that formula does not necessarily hold true for every site (or every page
on your site, for that matter). For example, if your site has a particular theme, and an
affiliate network only supports one or two suitable advertisers,
you might want to sign up for a few affiliate networks so as to get a greater number of
relevant advertisers. After all, advertisements that are relevant to
your audience are more likely to be taken up than general advertisements. (What's the point of
putting banners from only one affiliate if nobody is going to click them?)
Automated Context-Sensitive Advertising
One of the latest trends in website sponsorship is to
sign up with an advertising network like Google AdSense
The advertising network automatically checks your web page and determines the most relevant advertisement for the page.
As a result, without much additional effort from you, you get advertisements targeted at the interests of your visitors.
As mentioned earlier, targeted ads tend to result in better performance and returns.
Please Do Not Reprint This Article
This article is copyrighted. Please do not reproduce this article in whole or part, in any form, without obtaining my written permission.
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