How Does a Website Make Money in 2013?

These days when people are finding the online earning strategies as an attractive way to make money, there has been seen a great boost in the number of blogs and websites been created daily. However, It is a pity that about 6% of the total websites emerging these days actually generate some revenue probably because of the lack of knowledge of how do these blogs and websites make money.

Here is a detailed article where you will learn that how does a website make money and once you understand the mechanism, things can really turn into a profit.

Have a look!

How to generate money with online advertisements?

very difficult to talk upon because it’s not difficult to post an ad, what’s difficult is to chose where and which ad to display. Every business has a different model to work upon. Here is an example; you must have seen many advertisements broadcasting during one of your favorite shows. The company spent money to produce your favorite content and advertisers bid upon the seconds to get their ads played between their shots only if they got answers to their analysis that is content is spreading to millions? Is it targeting a major demographic? Does it actually drag traffic? If yes then congratulations you are going get huge money.

But what if you are one of the bloggers or publishing the writing material on your site, what is suppose to be your business model to drag money from advertisers? Here are few driving factors for you to evaluate and consider essential to drive-in the money through ads.

· How often different people, from different ages, occupation, culture or different sites visit your website? In-short you need to track how often you get unique visitors.

· What’s the frequency and growth of unique visitors on your website?

· How often are they clicking the shimmering ads along the sides of your content?

· What are the format and payout rates of ads you show?

· How long do they stay on your site?

· Any alternative way to stay connected with your traffic comments and queries?

This is actually your business model! This is what you needed to evaluate for your site to be either called as eminent to earn via online advertisements because this is what an online advertisers look upon on your site.

Other Online business models that generate money via online ads

Different sites has different approaches to earn, it could be either via blogging as mentioned earlier or it could be in the following ways to generate money via online advertisements.

· Google.com, Yahoo.com, Bing.com: These are the famous search engine sites, though they don’t provide any content but generate revenue by posting ads on the result pages for the 3^rd party.

· Facebook.com, LinkedIn.com, myspace.com: They are the social networking sites that are why they have a business model that is quite unique, because they offer more user-specific, user-provided data and so serve more targeted ads. They not only slicing down the ads according to region but also down to certain people watch certain shows, read certain books, etc.

· Youtube.com, eHow.com: You upload videos and build content, and as an agreement, a portion of ad revenue is returned to you as a payment for generating content.

How do the ads pay?

Now when you understand what they consider before letting you post, there are basically two ways to display ads on the top, bottom or sides of the pages. They are either image-based ads, Display ads or banner ads and word-based ads. Normally if you post a banner ad, there are three ways in which you can generate revenue.

· Cost-per-action: If your user click upon in and purchase through the link or sign up to their mailing list, you will get the highest payout as much as $15 or more.

· Cost-per-click: With every click by your user, comes in the money up to $2.50 per click.

· Cost-per-mille: You will be paid for a set of individual page loads, for example you will be only paid if your 1000 users click on the link, but this way it doesn’t work anymore. It might only pay you $2 /1000 click.

Which ad to choose?

You may find contents everywhere and no ads that is because who will keep struggling to maintain, shuffle, chose and rotates millions of ads on pages daily and for a naïve user the most difficult part is to choose and rotate. Here are few players on the ground, like Ad Serving companies, playing to save you and help you make money through online ads; in return they will take a cut of your advertisements revenue as a payment for selecting ads you run. You may also chose which ads to play by considering whether they are offering an interesting offer or are they giving discounts because this can catch an eye.

It may be easy to start a website but generating money via online ads needs tactics, you need to be smart and selective, regular and rotate to get your site into consideration on the world’s forum.

Wishes