What are Google Adwords?
When you go to Google and search on a topic, you will see listings down the left side of the page, with a white background.
Google Ads are the listings that appear down the right hand side of the page under "Sponsored Links". Sometimes there will be a listing at the top of the page which has a blue background. If there is a listing at the top, this website owner is paying more for their Google Ad than anyone else on the right hand side.
How does it work?
As the title suggests, the ads are sponsored, i.e. paid for, so every time someone clicks on those sponsored links, the advertiser will pay a certain amount. The advertiser will determine what amount that is, but the higher the "pay per click" amount, the higher up on the search they will be found. So for example, if I had a tractor sale website, I might want to be found under "cheap tractors". I will then decide how much I am prepared to pay per click. The more I pay, the higher up I will be. The higher up you are on the search, the more clicks you are more likely to get and as a result - hopefully more sales.
The amount you pay is completely up to you, but you will be competing with your competitors to get to the top! So if you attempt to get to the top under a popular search term (such as "car insurance") you will have to pay an awful lot - perhaps up to $2 per click!!!
How to choose the Price of your Google Ads:
If you owned a tractor engine website and you know that you make £100 per tractor engine sale and the website tends to convert 1 in 500 visitors, your ads should really not pay more than 20 cents per click, because 500 clicks will cost you $100, but should make $100. Ideally your Pay per Click (PPC) will be around 15 cents or less
Using Google Ads with Affiliate Marketing:
You will find many ebooks and websites promoting how you can make money using Google Adwords. These books will explain how Google Adwords work and then explain how you can use affiliate marketing alongside Google Adwords.
If the tractor company offers affiliates $50 for every sale they make, then you could simply set up Google ads under key words such as "cheap tractor engines" at 5 cents per click and hope to convert 1 in 500 visitors, if the affiliate pays $50 per sale, then it would cost you $25 for the ads, but you would make $50, so your profit would be $25 profit for simply placing an affiliate ad.
As long as this affiliate relationship continues and the conversion remains constant, then this would create an "automated income stream" for you.
You may have heard this term banded all over the place, especially with get rich quick schemes, and this is a true way to generate an automatic income stream. With Google Ads, you don't even need a website to generate money, but it is likely that to be accepted by a company into their affiliate program - you will need a website!?!?
Google Adwords Summary:
The trick to creating an "automated income stream" is finding a niche in a market. The trick is to find the cheap keywords that no-one else is bidding on, and that will generate sales from your affiliates.
• Start a table by writing along the top a list of your affiliates that you would like to promote and jot below it, the commission that they would pay for each sale.
• Now visit Overture Keywords Search (This tools shows you how many searches were made last month on keywords)
• Right down a list of words below the affiliates name that you think people would look for on searches which might not be that popular. It will then show you how many searches were made under those words that you have chosen. Make a note of it
• Now go to the Google search page and key in the words you have just looked at.
• What you should be looking for is a page with none or only 1 or 2 Google ads on the right hand side.
Don’t forget – hundreds, if not thousands of people are already doing this, so you need to think outside the box.
• Avoid common words – there’s little point in looking at “car insurance”, look for niche areas such as “Ford insurance”
• Look for misspellings, people will clearly bid on “car insurance”, but if someone typed “carinsurance”, this would require a separate bid with Google ads, so look for misspellings – this is a great way to be found on the first page.
• Think differently – if you were looking for a particular item, what other words might you use.
What is Google AdSense?
This is an add-on to Google Adwords, but you need a website to use this. When you set up a Google Adwords campaign it will ask you whether or not you wish to ads on the Google Campaign Network. It is a good way to give your site more exposure as your ads will appear on other people’s websites where there content matches your keywords.
How does it work?
If you have a car insurance related site, it is highly likely that your site content will have the words "car insurance" mentioned alot, so if you decide to place Google Adsense adverts on your site, other people who have decided to advertise using Google’s campaign network through Google Adwords under words such as “car insurance”, may find their ads appearing on your site. You will get paid should anyone visiting your site click on those ads. The amount varies, but it will be a portion of the advertisers pay per click rate.
Using Adsense on your site is a great way to make money from others using Google Adwords. There are a number of in depth ebooks out there offering some good advice on how you can utilise Google Adsense to make money, but once again I can sum it up for you...
The ideas in most of these ebooks are quite simple. You set up your own Google Ads under relatively cheap words pointing to your website. Within your website you have a lot of content which is relative to high paying Google Adwords and you place Google Adsense Adverts on the site. The idea being that someone visits your site (perhaps costing you – 5 cents) and then clicks on another advert paying more than 5 cents (i.e. 10 cents), so you make 5 cents per visitor.
So for example , when this ebook was written there were 85,000 searches for "Make Money", in one month, but there were only 45 searches for "save cash". So that in mind, if you publish a Google Ad under the words "save cash", and lead it to a page which is full of content regarding "making money" with Adsense adverts and affiliate adverts.