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Make
Money From Your Website ? |
Now
that you've got a website, how do you make money from it? There are
at least two ways in which sites can make money: (1) Advertising Revenue (2)
Selling Goods and Services |
Making
Money From Advertising:
If
you look at many websites, you will probably notice that there
are banner advertisements displayed on most pages. If you are
a newcomer to the scene, you might think that you must either
be a company or that your site must be famous before you can
get advertisers, just as it is the case in hardcopy
publications. In reality, anyone with a website can get
advertisers. While it is true that if your site is well-known,
you may get companies contacting you to offer to advertise on
your site, you can get advertising revenue even if you are
just starting out and your site is relatively unknown. The way
to do this is to join as an "affiliate" of various sites,
either directly, or through an affiliate network. An affiliate
network is simply an intermediary where you can select from a
variety of advertisers. |
Payment
Schemes:
Before
joining any program, you should probably be aware of the
different payment schemes available. |
Pay
Per Impression:
Here,
you are paid according to the number of times the advertiser's
banner is displayed on your site. The amount you earn is
typically calculated based on the number of thousand
impressions of the banner (impressions = number of times the
banner is displayed), often abbreviated CPM (cost per
thousand, with the M being the Latin numeral for thousand).
That is, $5 CPM means that you get paid $5 for 1,000 displays
of the banner. In general, the amount paid is usually small,
but it is easy to earn since everytime a visitor loads the
page, you earn. This is known as a "high conversion rate".
Needless to say, this method will allow you to automatically
earn more if your site attracts a lot of visitors.
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Pay
Per Click:
When
you are paid per click, you are only paid when visitors click
the advertiser's banner on your site. The amount paid is
usually higher than the pay per impression scheme. Whether you
get a high conversion rate here depends on the banner (whether
it attracts people to click it), although in general, it has a
higher conversion rate than the pay per sale method. A high
traffic site will probably enjoy a higher click rate than a
lower traffic site, although you will probably get better
results if your banners are carefully selected to suit the
target audience of your site.
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Pay
Per Sale or Lead:
While
you will probably get the highest payment rates with this
method, it has the lowest conversion rate of the three
schemes. You will only earn if your visitors click through the
banner and either purchase an item from the advertiser or take
some other prescribed action (eg, sign up for a service). Like
the Pay Per Click method, you get much better results if you
carefully select your advertisers to suit the target audience
of your site. |
To
join an affiliate network or program, simply go to the site
and complete their online application form. Some programs will
give you instant approval while others require a human to
check out your application before it is approved. Once it is
approved, you'll be given some HTML code which you can cut and
paste into your web page. Note that some affiliate networks
and programs will not accept you unless you have a domain
name. |
How
To Choose An Affiliate Program? |
How
should you choose an affiliate program? if you are targeting
parents on your site, links to affiliates with educational
software, books and the like may generate more revenue than
banners that link to web hosting companies. The most important
rule of choosing an affiliate program is to know your target
audience. Another point to consider is whether you really want
to join every single affiliate program that comes your way.
Some studies suggest that sites that make the most money from
affiliate programs are affiliates of only a small handful of
programs. Furthermore, concentrating your advertisements from
one network may allow you to be paid faster. If you advertise
for hundreds of different affiliate networks on your site, you
may wind up earning only (say) a few dollars per month from
each network. If your advertiser's minimum payment amount is
higher than what you can earn each month, it may take you a
long time before you accrue enough to be paid.
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On
the other hand, that formula does not necessarily
hold true for every site (or every page on your
site, for that matter). For example, if your site
has a particular theme, and an affiliate network
only supports one or two suitable advertisers, you
might want to sign up for a few affiliate networks
so as to get a greater number of relevant advertisers.
After all, advertisements that are relevant to your
audience are more likely to be taken up than general
advertisements. (What's the point of putting banners
from only one affiliate if nobody is going to click
them?
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