Make Billions Selling Advertising

Quite the sensationalist title, huh? But it got your attention didn’t it? Well that’s what the internet advertising model is all about. It is the process of getting the attention of web surfers and inducing them to make a purchase or, at the very least, visit another website.

Making money using the advertising model is easier now than it has ever been before. In the past, the platforms available to those wishing to make money using the advertising model were severely limited to those who had the technical know how, connections and, yes, money in which to pursue the business. The internet, however, has blown away all the barriers to entry and a budding entrepreneur can start making money online in a matter of days.

To be successful with this model, there are a few things you need to consider:

1. Pick something you are willing to stick with over the long term

While it is certainly possible to start making an impressive income right out of the starting gate, the reality is that most internet businesses take time to generate any appreciable income. The first thing you want to do is be certain that the venue you choose is something you’ll be interested in working on, day in and day out, over a long period of time.

2. YOU are that go-to person

Unless you are starting out with a cadre of employees, business partners or pockets full of cash, you will be responsible for all of the business’ operations. You will need to spend time marketing your website as well as mastering the software that powers your site. You will also need to acquire some basic html skills, understand the difference between SEO and SEM and learn how to best position your internet business for success.

In essence, you will need to learn how to work the internet in order to compete effectively in the marketplace. You must be willing to work at this level of responsibility or your business may not be as successful as it could be.

3. Plan to reinvest some of your earnings

Some venues, such as blogging, require no money get started with. However, as your business grows so will your business’ needs. For example, while there are many web hosts that will give you space for your site at no charge, they oftentimes limit you in what you can do with that space. Eventually these limitations will force you to buy a domain name and reliable web hosting for your site.

There will also be various services you may wish to purchase that will save you time and energy better spent working on other aspects of your business that are more important to you. You may look at hiring a freelance writer to take on part, or all, of the responsibility of creating content or you may seek the help of a search engine marketing specialist to help your site perform better with the search engines.

All in all, it is a good business practice to set aside a minimum of 10% of your earnings for reinvestment into your business. If the money is not needed right away, you can set it into an interest earning account to earn you free money until the funds are needed.

4. There is no business if there are no customers

More specifically without users/visitors to your website there is no ad revenue. Your main focus as an internet entrepreneur is to keep the traffic flowing to and throughout your website and you do this by providing a good visitor experience at your site.

It will be tempting to monetize every inch of your website with every ad program on the market. However if a visitor finds it difficult to get the information they need or to navigate your site they will go elsewhere and take your potential advertising revenue with them. You must strike up a user-friendly balance between your content or service and the ad placement.

5. Diversify

At the same time, do not rely on just one advertising revenue source. Like Winnie the Pooh, you should dip your hand into as many honey pots as you possibly can to maximize the ad space available to you.

At the end of this article I have provided a list of popular revenue programs to help get you started. Don’t be afraid to experiment to find what works best for your online business.

6. This revenue model requires active participation

Like anything else you must provide results. There are some advertising programs, such as pay per click, which you can set and ignore but most advertisers (the ones that you can really profit from) want value for their money. You need to work to make sure that they are getting that value otherwise they will think twice about handing over their advertising budget to you.

Venues conducive to the ad model

There are several different ways in which the ad revenue model can be used to generate income. The level of difficulty in setup and entry ranges anywhere from extremely easy to extremely difficult.

Information sites (Like About.com and HowStuffWorks.com)

Niche Blogging (example TechCrunch and PerezHilton)

Email service (as seen in Google’s Gmail and Yahoo mail)

Query Services (Such as Ask and Google)

Social networking sites (Digg and Reddit)

Online Newsletter/Newspaper/Magazine (Wired and Slate)

Paid advertising venue such as a directory (Aviva Directory)

Review website (ReviewMe)

In addition to an existing service or subscription site

Ways to Generate Ad Income

Direct Sell Ad Space

Basically this entails devoting a portion of your website to ads and selling the space, typically, for a monthly fee. There are two ways to go about this. You can solicit buyers directly or you can use an ad brokerage firm such as Text-Link-Ads.

Newer sites may have trouble attracting direct buyers but if your site has made something of a name for itself, it would definitely be more profitable for you to solicit buyers directly. Not only would you be able to command higher rates than if you went through a brokerage site, but you wouldn’t have to part with up to fifty percent of your earnings in fees.

Introduction Ads

These are ads that visitors have to view before they are able to access the content on your site. An example of this is Yahoo’s music video service Rhapsody. Before you can see the video, you must view a 30 second ad that you cannot skip.

On websites, a page pops up before you actually enter the site like the previews before a movie. Most times there is a link that allows you to skip the ad which is only good manners if you choose to use this type of advertising. Otherwise you may annoy your readers and send them running to the virtual hills.

Contextual Advertising

This type of advertising scans the written content of your blog and displays ads that match the subject content. The idea is that the web surfer is already interested in the subject they are reading. By showing them ads that match the content, advertisers are hoping the web visitor will be tempted to click the ad for their site and perhaps purchase a product or service. You, the mediator, are paid a sum for each person that clicks on the ad (otherwise known as Pay Per Click). This fee can range from a few cents to a couple hundred dollars depending on the subject matter and the ads served.

Sponsored Ads on Query Services

Search engines such as Google, Yahoo and Ask.com maintain a database of website pages and use a search function powered by a secret algorithmic recipe to help web surfers find the information they need. They (search engines) make their money by letting website owners purchase top positions (usually on the first or second page of results) for specific search terms to gain exposure for their businesses.

Classified Advertisement

This is the online version of the classified section in your local newspaper. The entire site is devoted to allowing people to advertise on the site.

A spin off of this are the website directories that seem to popup every minute. This is where website owners pay for inclusion in a directory that promises to send traffic their way or increase their PageRank. There is often a regular fee for inclusion in the directory as well as a premium fee for a premium listing on the site.

Pod and Video Commercials

If you are a podcaster or videographer you can sell sponsored promos on your audio and video shows. This usually involves spewing out a brief blurb about the company (for podcasts) or making use of introductory ads (for videos) to display the company’s campaign.

The advertising model is one of the most lucrative of the seven revenue models but it is also the most labor intensive to get started in. However, with time, patience and effort you too will count yourselves among the many successful internet entrepreneurs who made it work for them.

Popular Revenue Programs

Google Adsense
Review Me
PayPerPost
Bidvertiser
Kontera
Text Link Ads
Auction Ads

Just in case you missed an article:

1. Seven Ways to Make Money on the Internet

2. Make Money Selling Subscription Services

3. How to Maximize Your Donations

4. Make Billions Selling Advertising

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