What is pay per click?

I want to know how convert clicks into my site to $$

[cyberdrops]

Sorry this newbie question.

I manage several sites, some of them regularly achieve 700 to 1000 hits per day.

I don't know if these numbers are valuable or not. Some people said to me post banners into my pages to get some money. I checked with a internet provider who paid $1 per month for every customer making business with them. I post their banner and verified the click rate is about 1/200, thats to say 5 clicks by day ove 1000 entries. After 1 month checking, I passed some 150 customers to them, but only 1 of these customers made business with provider, so I earned 1 dollar/month to now.

My question is: is this ok? are there other ways for getting money of my sites?

Thanks very much

Mig