In early 2003, I started using Google AdSense. The first day, I
made $5 and was ecstatic. Then, in less than 18 months, I was
cashing $130,000 checks per month on the same site.
Google AdSense is an amazing and innovative product.
For those unfamiliar with the application, it simply displays
ads on your site based on the text found on each page. When
people click on one of these ads, you receive a percentage of
the revenue, rumored to be somewhere around 80 percent.
Overall, that’s a very low fee for the service provided.
And, there are other positives to running AdSense — it
relieves the pressure and headaches associated with trying to
sell ad space, collect advertising revenue and manage your
own in-house server and software.
But most people stop there. Satisfied with the little taste of
success that Google has given them, they never stop to consider
the negatives associated with using AdSense.
Editorial Control
By far, the biggest downside to AdSense is the lack of editorial control.
There are very few options to block advertisements and advertisers
you might find inappropriate.
For example, one of my wife’s friends in rural Nebraska sells a very
rare and expensive breed of dog — Kerry Blue Terriers. As soon as she
began running Google AdSense on her website, she started receiving
hate mail from her users. They accused her of making money from
people who sell fighting dogs. She was very confused. The only ads
she ever saw were for dog collars, leashes and typical pet products.
Since AdSense allows for geographic and site targeting, some users
located in certain cities encountered the offensive ads that she never
even saw. Ultimately, this damaged the overall trust she had built with
her readers over the course of many years.
One Click and Gone
With AdSense, the only way you make money is when people
leave your website. In my opinion, this is not a smart plan. You have
worked hard to get users to your website and to establish trust with
them. Now you are willing to send them to your competition for a few
pennies? Also, when a user clicks on an AdSense ad, a new window
does not open. That means if a user finds this new advertising page
offensive, useless or not what was expected,
they’ll close the window. That’s it —
they’re gone.
Part 2
Your Reputation
In my experience, Google’s general advice is to blend their ads into
your site as seamlessly as possible. The major problem that stems from
this practice is user confusion. What content is yours and what are
Google AdSense ads? Because of this, some users will try to hold you
accountable for offers being advertised on your site. I have had people
actually file claims against me for offers they signed up for from
AdSense advertisers found on my site. You really need to be careful.
What else can I do to make money?
There are several alternatives to AdSense depending on the nature
of your website.
Subscriptions
Forums and content sites can do well with subscriptions, easily set
up through PayPal. They are auto-renewing and compounding, creating
a hassle-free source of revenue.
Donations
For blogs, donations work fairly well. Some people basically beg
for a couple of bucks. Others try something more creative like, “Buy
me a cup of coffee,” redirecting the user to PayPal to send money
equivalent to a cup of coffee. These tactics might work for some.
However, with blogs I personally think the best way to handle donation-
type monetization is with “wish lists.” Amazon provides embedded
wish lists for webmasters so users can purchase the items you
want as a way to say thanks.
Affiliate Revenue
Pretty much every major online merchant has an affiliate program.
Dell, Google, eBay, Amazon, Target, HP, Dell and the list goes on. And
I bet at least one of them sells something relevant to your website. Did
you know that by simply linking to their site you get a percentage of
what your users spend there?
Direct Ad Sales
Direct ad sales are outstanding revenue generators, should your
site be big enough to command a direct advertising deal. There are
scads of direct ad sales strategies and formats, however. (More then we
have space to address in this article.)
Final Thoughts
In closing, I want to be clear — I am thankful for Google AdSense.
Without it I would have never got my start. And I have a feeling
they will help you get started too. But go beyond AdSense. Learn
from the ads. Who is advertising? Is it a direct advertiser you
can approach? Is it a middleman affiliate?
In the end you will realize, as I did, Google AdSense is
just the beginning of your online income. Once you expand
your horizons, you can make serious strides toward expanding
your bottom line.
Jeremy “ShoeMoney” Schoemaker started blogging his Internet
experiences at Shoemoney.com and then used that blog to spring
board new companies like Auctionads. Jeremy continues to launch new
startups and also chronicles his adventures on his blog.