Your earning potential with AdSense is generally is as follows:
Revenue or income from an Ad=(click through value of the ad * Payout Rate * Click through rate of the Ad * Webpage traffic * Frequency of an Ad).
In the above equation ,Click through value is the amount the advertiser pays per click for the Ad(this figure varies);Payout Rate is the percentage of revenue to be paid for every click fixed by Google(this figure varies);Click through rate is simply the # of the times the ad is clicked on in a certain period of time divided by # times it is displayed during the same period;Web traffic is the # of the visitors to your website; and frequency of Ad is the # times this particular Ad appear on your webpage.
Let give some figure to the above terms and see what the income is.The figure below are for a single day:
Click through value:30 cents or $0.30(The advertiser pay 30 cents per click for the Ad,Google)
Payout Rate: 50% or 0.5 (This is an assumption based on what many experts believe to be the current payout rate for most deals)
Click through rate of the Ad:the Ad is displayed 100 times within a day and is clicked by 8 people then click through rate would be 0.08
Webpage traffic:100 visitors per day
Frequency of the Ad:100
Then income per day for a single Ad would be = (0.3 * 0.5 * 0.08 * 100 * 100 = $120)
If you consider this to be average income per day,total income generated with in a month would be more than $3600.This is really incredible
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