Your opinion of a full time income pay differ from mine, I would be aiming for $5,000 per month for a niche site with well rounded, helpful content. This means you first need to build and stock your site with material that will appeal to Google so they approve your site to show advertising.
Google Adsense is one of the easiest ways to monetize your website. Once you’ve been accepted for an account, all you need to do is copy and paste the html code into your website and then start making money.
An important part of any site that wants to make money with Adsense is to understand exactly how visitors are needed to create a reasonable revenue. But until you get a significant number of visitors the Adsense earnings can be quite low.
When I see people talk about making money with ads they always discuss about profitable niches, cost per click, and making millions, but I never see much discussion about traffic. At the end of the day it’s all about traffic. There are many factors that affect a site’s overall income, but lots of the traffic is the common denominator.
Before you can make money through Adsense your website needs to be approved. To learn the requirements and how to meet them easily check out How to get your site approved for Adsense!
How do you calculate revenue based on traffic?
150,000 visitors per month! That may seem like a lot, but it’s not that difficult to achieve. I’m not saying it has to be 150,000 visitors, it could be lower or higher, it depends on the ads and if your content drives clicks to those ads.
I calculate the amount of traffic I need to make by a simple metric called RPM which is what Google Adsense actually uses themselves.
What is RPM? Basically, it’s a calculation of how much money you make per 1000 page views. It’s calculated based on a combination of your traffic, Click-through-rate (CTR), and Cost-per-click (CPC). The average RPM I’ve experienced with Adsense is between $5-$10 for broad blog sites, and up to $100 for more competitive niches with High CPC.
If you know your RPM, you can accurately estimate earnings for future higher traffic numbers, as well as the amount of traffic you’ll need to make a full time income. For example, if you’re making an average $7 RPM, that’s $7 per 1000 visitors on your site. That means if you increased your sites traffic to 10,000 visitors, you would make $70.
Traffic required to reach your goal?
Let’s breakdown some numbers with some examples. We’ll use numbers as close to average as possible. So, we’ll use a $1 CPC and a 5% CTR. So how much traffic do we need to make $5,000 per month?
First, we need to figure out how many clicks generate $5,000.
5000/1 = 5000 clicks.
If we need 5000 clicks at 5% CTR, the total traffic will be…
5000/0.05 = 100,000 visitors per month.
100,000 visitors per month to make $5,000 with Adsense. This is just an estimate using average metrics given out by Google. It’s not easy to maintain a CPC of $1, and CPC is a giant factor in much traffic you’ll require to reach this figure.
For every click you get on an ad you make money, this is what we call CPC, but what people don’t realise you also get paid on impressions, that is for every 1000 people that see an ad on your website you will be paid a flat rate which normally between $1 and $3 but some sites have claimed up to $40 per 1000 impressions, we call this method of payment CPM. So have this in mind when making your estimates.
Major factors that impact how much you will make from Adsense
The amount of money you make depends on the following factors:
- Volume of traffic: The more people that visit your site the greater the changes of someone clicking on one of the adsense ads.
- Type of website: For example a website that has funny videos will make less from Adsense compared to a website that has in-depth articles. The reason for that is people will visit the website and view the different videos and then leave, websites that don't encourage sales, so people don’t click the link.
- Type of traffic: Related to the above points, this is equally as important as the volume of traffic and what you are advertising. When you have an Adsense website you don’t just need any kind of traffic, you need targeted traffic. You need people looking to buy something, or need a problem solved, so they come to your website for help and you offer solutions. These people are more likely to click ads that are related to your content than people who are visiting your website to read news or watch videos.
- Ad placement: The location and type of ads is also important. Ads that are in the main body of content on the page get more views and have higher CTR (Click-through-rate) than ads on the sidebar. Check out these examples of good and bad ad placement.
- From experience, the best place to show ads on blog articles is at the end of the post, people who reach the end are likely to check out what you recommend.
- Competition: The ads shown by Adsense systems are coming from Google Adwords. Advertisers that are using PPC campaigns to promote their products or services. They pay Google an amount of money every time someone clicks on their ads. Out of that money Google keeps a percentage (normally 40%) and the rest is paid to you.
The amount of money a PPC advertiser is willing to pay for each click depends on a number of factors. One of them being competition, the higher the demand for advertising space for a particular keyword, the higher the CPC and the higher your earnings will be.
So if you want to maximise your CPC, choose popular topics with high competition keywords, general articles won’t have the search volume to gain a high CPC. So once you have a competitive article that is helpful and well written you’ll start to rank in the niche and traffic will increase, and with it your revenue.
Once you've established traffic and are making money from Ads on your site, it might be worth researching other ways to monetize content. Affiliate marketing is another great way to make money from your website, as long as you have solid content that solves problems, you can pitch products to help people overcome whatever is holding them back. This entire site is funded by affiliate marketing and I am giving you my Top 11 affiliate marketing strategies and how to get started!
Work out how many different pages a visitor on your site will see
The more pages someone visiting your website goes to, the more likely they will be to see and click on an ad. Getting people to stay on your website or blog is a key part of earning revenue.
Assuming that you have Google Analytics or similar instruments setup on your site, you can easily find out the average number of pages per visit. Go to Google Analytics > Audience > Overview and look at ‘Pages/Sessions’
This data can also help you figure out how many of your visitors have ad blocking software on their browser, this software prevents people seeing or clicking on your ads. There isn’t an easy way to work out the percentage of people with this software, but a reasonable estimate is around 25% of you visitors will. So by doing this, you can see how many unique visitors come to your site, and then contrast this by how many ad views or CPM you have, the difference will be the people with anti-ad software installed.
To make real money from Adsense make sure you stick to the guidelines:
- You create a website with lots of original content.
- Concentrate on getting organic traffic to your website because click conversions are higher from this type of traffic.
- Your content should mainly be text and must provide a solution or advice.
- Position ads in places people will see them, but do not compromise your articles integrity by looking spammy and unprofessional, don’t bait people into a click.
To really understand how to make money online through a website, you need to be informed on the latest Google algorithm changes, a community to share your pages, and dedicated tutors to help you monetise your site to its fullest potential.