Written on November 26th, 2004 at 03:11 pm by Darren Rowse

Pay per Click Advertising Trading

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A lot of Bloggers are earning good money as a result of being publishers of pay-per-click advertising but those that are making the most out of it are also bringing traffic to their blogs via the same method.

It sounds all wrong when you first think about it - why would anyone spend money on getting readers to their site in order to get them to click an ad to earn money? Wouldn’t it cost more to get readers than you’ll make from it?

Well it all depends how clever you are really. Let me explain a little…

Imagine this - you spend 5 cents to get a reader to your site but when they get there they click on an ad or buy something from an affiliate you link to and you earn anything from 50 cents to $20 (or more)! Sounds like a good investment to me.

This is what many webmasters and an increasing amount of bloggers spend their days doing. Its a little like share trading - you are looking at the fluctuations of prices on buying ads and timing it just right so that returns are maximized whilst also searching for affiliate programs and high paying contextual advertising terms. The hope is that a high enough percentage of your readers click those high paying ads or buy those lucrative products you sell to not only recoup your investment but also make a little on the side.

Of course you don’t even really need a blog or website to make money from pay-per-click ads. Here is another strategy that many are using. You buy ads cheaply and instead of funneling people to your own website you send them to another site which you happen to be an affiliate for! An increasing amount of the ads that you see advertised on Adsense and Overture are actually placed through this method - not by the site you visit when you click them, but by an affiliate hoping that a high enough percentage of clickers make a purchase and earn them a few dollars.

The method is risky and it takes some good well thought out strategy and precision execution but the rewards are potentially great.

I talked to someone using this method earlier in the week and he told me that his sites now earn him $US10 million per year - but that he’s spending just over $US5 million in advertising. Food for thought.

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