Saturday, July 17, 2010

How To Make Money Online From Your Website

Having your own website can be a fun, informative and a profitable experience. Many individual create websites in an effort to reach as many people or potential clients as they possible can. The reason for this in most cases is to sell goods and or services. On the other hand, sites that generally provides free content such as videos, music, news and other free stuff tend to implement a different approach called "Advertising Revenue". Making money from advertising networks such as Adbrite and Clicksor are common practices and can also be used in conjunction with selling goods and services for maximum return on investment. Before you can start earning money from advertising revenue, you first have to sign up as a 'publisher' for an advertising network.

Advertising Networks:
An online advertising network or ad network is a company that connects advertisers to web sites that want to host advertisements. Increasingly, ad networks are companies that pay software developers as well as web sites money for allowing their ads to be shown when people use their software or visit their sites. The most common types of advertising networks are CPC, CPM and CPA networks.

CPC - Typically stands for 'Cost Per Click' and this is the amount of money an advertiser pays publishers for a single click on its advertisement that brings one visitor to its website. Please not that this type of advertising model is called Pay Per Click (PPC) in which advertisers pay their host only when their ad are clicked. When choosing a PPC Network it's important to know whether or not the company uses Flat-rate PPC (fixed amount per click) or Bid-based PPC (cost per click varies due to auction between advertisers).

CPM - Stands for 'Cost Per Mile' and can be purchased on the basis of what it costs to show the ad to one thousand viewers. CPM estimates the cost per 1000 views of the ad and is a very effective model for sites with media content or sites with repeated visitors. While Ad network like Smowtion Media offers a strict CPM model, it is to be noted that most advertising networks will use a combination of the different models to fill your inventory.

CPA - Cost Per Action or CPA (sometimes known as Pay Per Action or PPA) is an online advertising pricing model, where the advertiser pays for each specified action such as a purchase, a form submission, and so on that is linked to the advertisement. While CPA networks aren't that popular among site owners, many network offers a unique approach that can easily convert your site visitors into cash.

eCPM - Effective cost per mille
Effective cost per mille is used to measure the effectiveness of a publisher's inventory being sold on a CPA or CPC basis. The eCPM is very important because it tells the publisher how much money they would've made if they sold their advertising inventory on a CPM basis (instead of a CPA or CPC basis).

Choosing an Adverting Network
Now that you have an understanding of how everything works, its time to choose and ad network that will work for you site, traffic and niche. As a general rule, a site that provide informational content might do better with CPC networks while an entertainment website that provides mostly free content might do better with a CPM network. While this is true in most cases, you might be able to improve your eCPM by using a combination of these methods. A CPA network might also work well on a website that reviews products and services. (The choice of CPA network should be from the same niche as your sites content). Below, are examples of advertising networks that might be of interest, be sure to research and find a network that fits your site's content.

Top Rated Google Adsense Alternatives

Model Used: CPC and CPM
Difficulty: Easy to Join
Payout: $50 minimum payout (pays twice a month)
Payment Method: Paypal, Check, Wire Transfer
Suggestion: Perfoms well on content(text) sites

Model Used: CPC and CPM
Difficulty: Easy to Join
Payout: $50 minimum payout
Payment Method: Checks
Suggestion: Does well on Entertainment sites

Monetize your site! Smowtion Media
Model Used: CPM
Difficulty: Easy to Join
Payout: $100 minimum payout
Payment Method: Paypal, Check, Prepaid MasterCard
Suggestion: Sites with good traffic or Repeated visitors