Monday, October 23, 2006

How To Make Advertisers' Money

There are two ways to get advertisers to your site and make money from them.

1. Sale your sapce directly. You may find advertisers and let them put their banners or similar stuff on a certain space of your website. You are an info-estate owner, like a mall owner, and your advertisers are your tenants, they rent a space from you. You can charge them based one time term, pay-per-click (CPC) or pay-per-view (CPM), or other way you both can accept.

Affiliate programs is the other way to do it. You advertise a product or a range of products on your site (like an Amazon.com search box), You will then be paid a percentage of sales you make. This is good if you have an audience who are very likely to buy from an affiliate program you are publicizing as you will earn a lot more than from a banner. For a list of thousands of programs you can join visit AssociatePrograms.com

2. You work as a sub-agent, then you let someoneelse like google to find advertisers for you. But you need convince google to send the "tenants" to your space, and the tenants also need satisfy your standard. AdSense is a popular programm. Many people are making decent money from it now.

What are "pay-per-click (CPC)" and "pay-per-view (CPM)"?

Pay per click will pay you money every time someone clicks on the banner. Pay-per-view will pay you every time the banner is loaded into someone's browser.

It is obvious that pay-per-view is going to make you a lot more money but, unfortunately, it is only available to large sites. Pay-per-click advertising will not get you as much money but if you can get well targeted advertising you should get quite a lot of clicks. Recently, many advertisers are starting to use pay-per-action (CPA) banners, where the user must do something on the advertisers site (like sign up to a newsletter) for you to earn the money, similar to affiliate programs.

Banner companies will look at your site and target the advertising for you. You should only have a few advertisers as they will have a minimum pay out (usually $25). You will not get paid if you don't reach this amount so you should concentrate on a few to make sure you get paid. Some companies, like Commission Junction work as an agency where you can earn from many advertisers and all the money is pooled into one account, which is very useful.

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