I registered with Adsense thinking it's a good idea without understanding much about internet advertising. How do popular websites like Google, Facebook, MSN, etc make so much money from internet advertising? If you are a newbie like me to internet marketing, and are thinking of setting up a web business, here are the 3 main ways to generate advertising revenue:
CPC - Cost per Click. The advertiser pays you every time a visitor on your site clicks on their advertisement. Google Adsense works this way.
CPM - Cost per Thousand Impressions ('M' is the Roman numeral for 'thousand'). The advertiser pays an agreed amount for the number of times their advertisement is displayed/viewed through your website. This is regardless of whether they get any business from your visitors. Popular websites earn megabucks on this basis; like owning a big billboard in a busy location and advertisers pay handsomely to have their advertisements on it.
CPA - Cost per Action. The advertiser pays you a specified amount every time a visitor to your site takes an 'action', e.g. sales transaction, in response to their advertisement. Affiliate and referral programs are examples of CPA. For instance, when your visitor buys something from an advertiser by clicking a link on your site.
So, if, 10 million people go on to Facebook every hour...
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