How does Google Make Money

One of the first things you need to understand in order to make money with Google is know: How does Google Make Money . Why is this important? Because the more money Google Makes, the more money YOU make. And if you are STILL reading this blog, then that means you are well on your way to Making Money With Google!

Before I started to make money with Google I always wondered how they were making any money. They don't sell any products, and most of the services they offer are free. So how the heck does google do it? Even more impressive in 2009 Google is set to bring in about 10 billion in revenue. YES, Ten Billion Dollars. All this from a company who offers their services for free.

How do they do it? The answer on how google makes money is.... Advertising. And by reading and doing everything in this blog you will be able to get a good slice of that 10 Billion Dollars! Here's how it works and why it is important to you:

Advertisers pay google in two ways. One in on the google homepage (Have you ever went to search for a particular thing in google and at the top of your search results you see a box that says "Paid Advertisement"? ) . The other is on other peoples webpage (this is how you will make money with google). These advertisers only pay google if someone clicks on their advertisements. It's an ingenious idea, because the companies who pay for this advertising can target for very specific keywords, and for a very specific audience. Look in the picture below ( Click on it to make it bigger ). As you can see in the picture paying for a sponsored link gets you to the #1 spot in google and targets the exact audience that this company is looking for.

The other type of advertisement the google makes money with, and with which you will make money with, is called "content advertisements" You have probably seen it on many webpages and not have even noticed it was their. Below you will find an example of what content advertisements look like.

Again, an advertiser ONLY pays if someone clicks on their ad. From these ads is how YOU will make money from google. Once I teach you how to pick a top, and set up a webpage, you will place these ads on your webpage. You will then get paid each time someone clicks on your ad.

I am sure by now you are asking yourself, " Well how MUCH per-click am I going to get paid?"

This all depends on how much the advertiser has said they will pay-per-click and how much google said a specific keyword is worth (more on this in the next post). So, for example say a company says to google that they are willing to pay $1.00 for the keyword phrase, "How to make a website". Google will then turn around and say to that company, "At that price we will be willing to show your ads 50% of the time". If the company offers to pay more per click, then google will show there ads more. As a general rule, google's asking price per-click all depends on how many people want to advertise for that subject. If it's more people want to advertise for it google will ask for more money, and if it's less, google will ask for less.

How does this effect you? Well, google will pay you about 40% of what the advertisers pay! Yes, 40%! So, out of that 10 Billion dollars that google made last year - FOUR BILLION DOLLARS of it went to people like YOU!

Now that you know the answer to " How Does Google Make Money ? " we are well on our way to turning their enormous profits into our own profits!

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