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It never occurred to me to explain how the Google adsense program works until I received a few emails from subscribers of this website asking for an explanation of how the Google adsense program works.

The Google adsense program is an offshoot of the Google adwords program. Actually, the Google adsense program could not exist without the Google adwords program.

It would be really difficult to explain the Google adsense program without explaining what the Google adwords program is.

In short, the Google adwords program is a pay per click advertising program. Pay per click is a method of advertising where the advertiser only pays for the ad when someone clicks on it. An advertiser will setup an ad based on keyword bids. The placement of the ad is dependent on what the advertiser bids on the keyword for the ad. The more that the advertiser bids for the keyword, the higher the bid, the higher the placement the ad will be on the google sponsored listings which are displayed to the right of the normal listings on the search results pages. There are other factors that also determine where an adwords ad is placed on Google’s search results pages. You can get more info here.

An advertiser will need to open an adwords account before he or she can use the adwords program. Here’s where an advertiser would need to go to signup.

The Google adsense program runs through what is called the Google content network which is a part of Google’s adwords program. Google’s content network is comprised of websites that display adwords ads.

If you have a website and wanted to display adsense ads on it, you would have to first signup for the Google adsense program and your website would have to be reviewed and accepted by Google before you can display adsense ads on your website. Once approved, you would then place a snippet of code on your website in order to display adsense ads on your website. Once your adsense ads goes live on your website, your website then becomes a part of Google’s content network.

The types of adsense ads that are displayed on websites are based on the content on that website. If a website is about computers, the adsense ads should display computer related ads. The main idea of the Google adsense program is that all ads that are displayed are targeted to the websites visitors interests.

When a visitor clicks on an adsense ad, the owner of the website where the ad is displayed gets paid a percentage of the advertisers bid.

This is just an overview of how the Google adsense program works. Hopefully, this has given you a better understanding of the Google adsense program. You can get more info on the Google adsense program here.

I’ve been reading quite a bit about Adsense Arbitrage just to see what all the noise is about. From what I’ve read it seems to me that Adsense Arbitrage wouldn’t be a good idea for people who have little or no knowledge of the pay per click process.

With Adsense Arbitrage you advertise your website using a pay per click program in the hopes that your adsense ads will get clicked and those clicked ads will make you more money than what you paid for in pay per click advertising in case you didn’t know what Adsense Arbitrage was.

I have never tried the Adsense Arbitrage method but it’s pretty risky and it seems like you would have to constantly stay on top of your campaigns because you could very easily and quickly lose money with Adsense Arbitrage.

If you were to use adwords for your pay per click advertising with Adsense Arbitrage you would have to find very low cost keyword phrases in order to make Adsense Arbitrage worth your while and since adwords can be very expensive it would be pretty hard to make money using the Adsense Arbitrage method. A relatively low bid on a keyword phrase with adwords would be around 40 cents a click. Unless you get a high click rate and a high per click payout with your adsense ads it will be difficult to profit with Adsense Arbitrage. Even if you could get a 50% click rate on your adsense ads and averaged 80 cents a click you would only break even. I’m not saying that this scenario impossible, but it is improbable.

The only positive that I can see with Adsense Arbitrage is that if you use the right keyword phrases you are guaranteed traffic to your site and a percentage of that traffic will come back if your website has good information.

The only way that I can see Adsense Arbitrage possibly working is by using smaller pay per click advertising sites such as goclick. At least with goclick you can get highly competitive keyword phrases for pennies per click which would help make Adsense Arbitrage more profitable. In most cases it won’t cost more than 3 cents a click to get your ad near the top of the pay per click listings. That’s more workable because you won’t need a high click through rate or payout to make money with Adsense Arbitrage. If the average payout per click for your adsense ads were 30 cents a click you would only need 1 click on your adsense ads for every 10 clicks on your pay per click ads to break even assuming that it costs 3 cents a click for your pay per click ad which means that any keyword phrases below the 3 cents would make a profit at the same click through rate and payout on your adsense ad.

With that said, I don’t know what types of websites that goclick serves its pay per click ads on or how targeted they are and how much click fraud if any, there is.

I am really skeptical when it comes to Adsense Arbitrage and won’t be trying it without further research because from what I can see, a lot of things can go wrong and a lot of things have to go right in order to make money with Adsense Arbitrage.

If you have been thinking about trying Adsense Arbitrage you will be better off using a pay per click site like goclick rather than Google adwords or Yahoo because the cost is a lot lower making the risk much less. Approach Adsense Arbitrage with a heavy dose of skepticism and start with a very modest spend to see what websites your ads are being served on. Also use a tracking system outside of goclick that will show how long those clicks are staying on your website. If all of the clicks are not spending any time at all on your website chances are there is click fraud going on. The best tracker to use is StatCounter because it will tell you where the clicks are coming from and how long these people are staying on your website. Monitor your progress very closely.

Adsense Arbitrage sounds very inviting at first glance but by looking closer you will see that there is a lot of risk involved if done improperly or done without close monitoring on your part.

One last thing that you should look at with Adsense Arbitrage is Google’s stand on this practice. I don’t think that Adsense Arbitrage is what Google had in mind for their ppc advertisers when they came out with the adwords pay per click program. Keep in mind that Google may frown on Adsense Arbitrage and at some point may not allow it.