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If you spend $100 to get 1000 visitors to you're website then you need to make at least $100 to make it worthwhile. Lets say if you have an average EPC of $0.30 and an average CTR of 15% then you'll make only $45. So to break-even you'll need at least something like a 25% CTR and $0.4 EPC.
Maybe it's easier to achieve this with CPM ads but I haven't tried it yet.
IMO it's better to focus on affiliate programs instead of AdSense. Create a few landing pages and send your traffic to merchants.
You pay $.30 for a widget keyword on adwords for your widget website. Then 1 out of 10 people who clicked on your adword ads click on your adsense ads, assuming google pay you 60% of the cpc, you make .18c for every $3 you spend on adword. Again, assuming that you can get 10% ctr, which is not easy for most of us here.
Well, If you think you can get higher ctr on adsense and cheaper, related keyword alternative on adwords for your website, you could win.
I've tried this before, and worked for me for some times. But google changed the game, they now made it so difficult for everyone to make money doing this strategy.
Even then, the profit margin is always on the brink of being negative (which gives a new meaning to the word "profit". So, in a nutshell, it is possible, but it will take a lot of work and a lot of money.
I make only a few dollars a day doing this. I could probably make more, but there are more lucrtaive opportunities on the internet where you can make a living and I tend to focus on those.
Adwords for what it was intended to do - bringing visitors to your site and raising awareness about your site, can and will work.
I wouldn't think of it as "I can spend this much on Adwords and make this much back on Adsense" so much as I would think of it as "I can spend this much on Adwords and bring this much traffic in, and If I have enough content and an easy to use site, X number of people brought in by Adwords will bookmark my page, perhaps link to my page, and perhaps tell other people about my page, and will perhaps visit my page often".
To all of you recomending affiliate programs, is there any good directory or such, presenting affiliate programs for different categories of websites? Cause when I search for "affiliate programs" on big G, all I get is annoying ebook sellers and programs pretending to make you thousands a day :¦ .Thanks.
What exactly do you consider to be a parasite - a page that has AdSense ads on it, and happens to be advertised on AdWords? Users have a free choice what they do when then arrive from Adwords (or anywhere else for that matter), so I fail to understand the parsite label. As many of us have pointed out, the AdWords in > AdSense out route, is, afterall a losing venture if viewed strictly from the AdWords-Adsense balance sheet perspective. But actually, I don't have a clue what you mean - what am I missing here?
Simple. The Adsense ad that is shown on parasite-page will be shown on genuine publisher's page, be the world clean of parasites. Which means more earnings for genuine publishers and/or lower bid to advertiser for same click.
Unfortunately, current system brings more short-term profit for Google (a cut from Publisher>Parasite click plus a cut from Parasite>Advertiser click), as opposed to better system to real bussinesses long-term.
I am not to offend anybody, of course there are many situations where there is perfectly ethical to have "Adwords in > Adsense out" pages, actually pages where there is lot more things to do, than exit through Adsense.
You will know who you are ;)
Also, let's keep in mind Google is not in this Adsense to judge who's a genuine publisher and who's a parasite ( the readers will do that ). G is selling ads.
So, as most members say, content really is the king, cause it can make my visitors come back or not. I'll keep that in mind.
I've written a few articles here and there that have been picked up by other sites, and literally my traffic increased %500-%1000 for several days at a time (and probably increased %200+ long-term). To get that kind of traffic with AdWords would cost a lot.