Monetizing your website… A Riddle to be Solved

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By: Hassan Javed

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Generating revenue and positive ROI is as difficult as to summit K2. It may be very easy to launch or plan a new website but the real game begins after we are already with the site map, idea resume and the problem which is to be solved through the website.

Google on one hand has made life easier for users to search and get relevant information on the other hand it has provided a great opportunity of website monetization with the traffic generated. One of such opportunity is through GDN (Google Display Network) while the other is Affiliate marketing. The later is somewhat easier to understand as through Affiliate marketing website generates revenue by making direct sale for the merchant’s product. Here merchant means the company whose web banner or CTA (call to action) of service or products to be sold are placed on a (Affiliates) website. In this type of ROI model, website gets a chance to generate profit, as the sale of merchant is generated through affiliates website directly which can be traced as well. The revenue received is of the percentage share in the sale generated agreed between merchant and affiliate. This type of marketing gives avenue of generating sale to the merchant through the web traffic on a website. Normally merchants do affiliate marketing with bloggers who promotes their (merchants) products on website with relevant articles and hence generates POS (Point of Sale). Apart from this, the model is successful for startups that recently activated the website or have minimum traffic on their platform and wants to push sales (penetration in market). See the article to see, how it really works

Talking about GDN (Google Display Network), we need to install ad sense to our website and wait till we are in the GDN. But for a website to qualify for ad sense one must keep few points in mind before a website is registered on ad sense.

a) Lack of essential pages can earn you a rejection: For Google pages like about us, privacy policy and contact page are a must. A Google crawler crawls into a websites and tries to place the right ad on the right website.

b) Design of Website: the design of website must be user friendly, fonts must be visible and a good UI makes the website more user friendly and hence Google looks into this side as to qualify for ad sense.

c) Site that doesn’t have enough text/content on it to review will be rejected: This means sites which only use flash and embedded content without making any relevance cannot be selected by ad sense. These sites are usually full of spam.

Moving on towards models of monetization through ad sense, there are two basic models which can be used for monetization through ad sense:

– CPC – Revenue generation on clicks being generated.

– CPM- Revenue generation per thousand impressions

Selecting a Revenue model for generating profits depends upon nature of the website, as to people will be able to click more or the website can generate more revenue from impressions. For CPC based model one needs to have better CTR let’s take an example; in order to make $100 a day one needs to have 40,000 page views per day assuming our CTR is 1% and google will pay $0.25 per click. This said target 40k page views is not easy for a new website to achieve but it really needs good SEO skills and content which can create CPC and likewise for CPM (impression) model based website which needs more impressions on page and visits with lesser bounce rate to become profitable. Things aren’t as simple as it seems on ad sense specially for a new website. We don’t know what rate of $ will the website get per click from Google and What is the right amount of traffic to generate ROI from the website? (Obviously the higher the better).

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So for this what we have in our control is the content and layout of website. We need to make our content more engaging and interesting for audience to generate better ROI. To shed light on new basic points of increasing CPC and CTR, we can keep the following points in mind.

1- Change banner placement after some time so that you targeted customer doesn’t get accustomed with your ad positioning.

2- Don’t select strange shaped ad format as the placement of banner may get compromised.

3- Try to increase visit time of each visitors coming on the website and keep an eye on the bounce rate as it effects CTR.

4- Serving mobile audience for ads.

To wrap it up, we must agree that basing the model solely on ad sense may not be healthy for website sustainability as attracting large number of audience may be a challenge but with affiliate marketing we can surely have a cushion on our end to lock our horns against the odds.

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