Forum Moderators: martinibuster
If you send people to a site for 10 cents a click, but make 10 cents a click from Adsense or less, then you will loose money.
It is not very likely that you will have a 100% CTR on your adsense, so you pretty much need to find a niche where your payouts are in the dollar(s) per click range in Adsense to make it worthwhile.
I have a site which gives me back 11-14 dollars for every dollar I spend in PPC, but it hasn't made much money per day because you have to bid on odd misspellings and whatnot that just are not high traffic terms.
Suppose 1000 visitors visit your site per day, (at 10 cents each) it's already cost you $100 to get them there. Suppose you get good clickthrough (10%, or in otherwords, 100 visitors click on your adsense ads). Let's also suppose you get a good EPC ($1 per click). Then it's just math. 1000 visitors X 10% = 100 adsense clicks X $1 each = $100 in adsense earnings MINUS the $100 initial investment = $0.00 profit and a lot of work and risk.
You HAVE to target something that's going to either do a heck of a lot better than 10% clickthrough, or a heck of a lot better than $1 per adsense click.
Tell me how it goes. Until I hear back from you, I'll be producing organic results.
Here's another 'secret'... bids on many other search engines are not always as high as G. Unfortunately for them (and fortunate for some enterprising young chap) they don't have the same long list of bidding clients as G. So there is the start of a new niche.
So basically your job becomes no longer so much of a content producer, but becomes one of finding cheap generalized click-thrus, perhaps paring them down into subgroups (via menus) on your site to focus the interest and simultaneously RAISING THE VALUE PER BID and then selling them to higher bidders on G at a high enough price to pay off your original materials cost plus a profit.
An example from history: In the early days when they manufactured carbon electronic resistor components they didn't say ok I'm going to make an exact 100 ohm resistor, they pretty much mass produced them super CHEAPLY and then TESTED each. All the ones which turned out to be 90-110 ohm they put in one box and called them 100 +/- 10% and charged 10 cents each. A pack of a hundred would cost you $10.00.
Then if someone wanted or (usually a rich government contractor spending someone elses money <snicker>) "needed" a +/-1% resistor the manufacturer took 100 ($10 worth) of the same 100 +/-10% resistors out of their stock box, retested and divided them into 10 boxes of 90-92, 93-95, 96-98, 99-101.. and now had TEN types of +/-1% resistors including on the average 10 x 100+/-1% resistors, only now they got a fancy little marking painted on them and you had to pay $1.50 each for the same exact resistor or $15 for only 10! Then they just had to sit back and wait for someone else to buy the other 90 which they had already spent the time testing, and they'd make a total of $150 for their simple labor of sorting resistors. Sound familiar?
Remember the term VAR? With GAdSense I see a whole new market developing for people who build the infrastructure to take cheap general "widget" requests at <.10 click and turn them around into "green widget" "red widget", etc. searches worth $1.50 ea. and getting paid for the "value added" simply by refining the searchers needs.
Not so bad a niche... at least until the cheap PPCs and G catch on and wipe out the middle man. Oops... too late?
Mike