Everyone talks about passive income, making money online, and sitting on beach somewhere while you earn money while you sleep. One of the most popular programs, and so called “easy” ways to make money has been the infamous Google adsense. It’s simple to put into your website, very recognizable, and it you can be up and running in about five minutes. However, should you make money with Adsense?
A few days ago I placed Adsense ads near the top of each post here on Planting Dollars. I did it for the sake of curiosity mostly, to see click through rates, estimated value per thousand, and essentially understand how it would perform on my site. I realized I wouldn’t retire tomorrow by placing a few text links, but nevertheless I need to learn through doing so it’s more of an experiment than anything. Before I decided to place the ads I did a little bit of soul searching to determine whether or not I should make money with adsense.
Lack of Control for Ads
Adsense is an intelligent system that allows keywords to show up based on the content of the page that loads. For example, if I write a page about Waikiki Beach it will most likely bring up ads related to Waikiki Beach such as Waikiki Beach hotels, businesses, and perhaps artists. As a result, I don’t have much control as to what ads show up on my site. This limited control is what a lot of webmasters fear and a big reason why they don’t place the ads on their site.
One popular example in the world of personal finance blogs would be writing a post about using conservative investing strategy, meanwhile a few pixels away there’s an ad ready to sell you an ebook about buying penny stocks, which are the furthest thing from a long term investment strategy. I understand that the ads are contradictory, but I still have faith in my readers…
Giving You the Benefit of the Doubt
Although some ads may be contradictory at times I like to give you, the reader, the benefit of a doubt. If you’ve come to this site you obviously have a brain and hopefully aren’t interested in the “get rich quick” schemes that are often advertised. Therefore, I believe that you have the ability to not take these ads seriously and if you do decide to click on them, it’s only for curiosity sake. If you are dumb enough to believe you can get rich by next week trading penny stocks online then thank you for clicking on that ad and making me money!
A similar example to this would be TV shows. The creators of each TV program do not get to choose which ads run during their television program. That’s between the network and the advertisers. Although it makes more sense to advertise during related shows the creator won’t have a say. As a result, do you think this diminishes the value of the show because of the ads you see during it?
Making Money With Adsense
It’s not as easy as it seems. Adsense is a numbers game and all about volume. Estimated click through rates that are decent are around 1-2% and depending on the content of your site can fetch anywhere from a few pennies to a few bucks. So how much traffic would it take to make full time income with Google Adsense?
In our scenario let’s pretend you need $30,000 a year to be considered full time income. We won’t consider taxes in this simple scenario. We will also assume that you have a 1% click through rate and make $1.00 per click. That means for every 100 impressions you make $1.
$30,000 goal / $1 per click = 30,000 clicks needed
30,000 clicks / .01 click through rate (.01 is the same as 1%) = 3,000,000 page impressions.
If we break that down it’s
250,000 per month
57,692 per week
8219 per day
As you can see, they’re not exactly small numbers. The easy part is putting up the ads, as Money Funk so eloquently showed how recently with her adsense tips, however, the hard part will be bringing that many people to your site to click on those ads.
What do you think about making money with Google Adsense?
Do you think webmasters should use it, or not?