Sunday, April 4, 2010

How A Website Makes Money

How a website makes money, where do i get started on this topic. How a website makes money is off the volume of traffic they earn, and how many paid per click advertisements. Another way how a website makes money is affiliate sites such as amazon, click bank, ECT. The creator of the website must work hard and have unique ideas on certain topics, then incorporate these topics with ads and related items for sale. These ads and related items for sale is how a website makes money. Example if your website gets 10,000 visitors a day. Only 1,000 visitors click your Google Adsense, with an average pay per click of $0.25. You make 250 dollars a day from Google Adsense. Now factor in the amount of sales commission that you received from click bank and amazon. Out of the 10,000 visitors u only made 1,000 in sales with a sales commission of 15 percent. This is an extra 150 dollars, so your total revenue is $400/day. This is ultimately how a website makes money. Another way how a website makes money is selling services. Services such as e-books and merchandise may be available for purchase on a website. This is a more hands on way how a website makes money because they are not acting as a middle man. They are providing the merchandise first hand. They deal with pricing, inventory, customer issues and all the extra headaches that come from running a business. Paid per click and affiliate sites are made so you don't have to deal with the headaches, you act as a middle man. Taking services from one vendor and selling them to the customer for a commission. These are the two main ways how a website makes money.  Please check my related posts

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