What is: Passive income?
It is the kind of income that comes from a source that requires
little effort on your side and which you get on a regular basis
(monthly, quarterly, etc). These could be Rents, bank interest, or a
royalty from a published book. But in the online world, it could also be
an Adsense income from your Website or Blog that you can also collect
on a regular basis. When a Blog is established, all you need to do is
maintain the traffic by adding quality content and keep giving value to
your site.
How to start earning money from Adsense:
Many people think that earning from Adsense more than $100, $200 or
even $500 per day is impossible because they look at their own numbers
and they get discouraged by the miserable 10 bucks that they receive per
month for their blogs.
However, there are thousands of Bloggers that are achieving the above
numbers and they earn from $2000 to $10,000 per month, or even more.
How do they get do these numbers with Adsense? Their secret is:
determination, effort, blog planning, passion for their niche, and
patience (specially at the beginning).
Before explaining how to earn 10,000$ per month, let’s revise all the
definitions involved in the earning calculations so you have a better
understanding of the procedure.
AdSense: It is an affiliate program
created by Google that let us use their ads in our blog and earn money
when people click on them. They are contextual ads that are related to
the content of your site. For example: if your site relates to finance,
your ads will show finance related products or services. How does it
work? Google Adsense acts like an intermediate between the advertiser
and the publisher, and they profit from the difference(pays less to
publishers than what they charge the advertisers).
The
click-through rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown (
impressions), expressed as a percentage.
[2][3][4][5][6][7] For example, if a
banner ad is delivered 100 times (100 impressions) and receives one click, then the click-through rate for the advertisement would be 1%.
Source: wikipedia
Example: Consider that you get 2 clicks of 1000 impressions. The CTR calculation: 2 clicks/1000 impressions= 0.02 =
2%.
Cost Per Click (CPC): A website that uses CPCs would bill by the
number of times a visitor clicks on a banner instead of by the number of
impressions. Cost per click is often used when advertisers have a set
daily budget. When the advertiser’s budget is hit, the ad is removed
from the rotation for the remainder of the period.
Investopedia explains ‘Cost Per Click – CPC’: For example, a website
that has a CPC rate of $0.10 and provides 1,000 click-throughs would
bill $100 ($0.10 x 1000).
Source: Investopedia
CPM: CPM means “
Cost Per 1000 Impressions.”
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