Lets discuss a few things about Google adsense. Once you get your account approved you will have 3 different ways to make money.
1.Adsense for content
2.Adsense for search
1. Adsense for content
Adsense for content is one the most widely used among the three. In this Google renders ads on your web page according to the content that is present on your web page. In Adsense for content there are 2 different types of ads you can place:
Ad Unit: In an Ad Unit ads are targeted to the site based on the content and the ads can be placed on the site in various shapes. Google currently provides 11 different formats of displaying Ad units. Thus the size of the ad can be selected depending upon the layout of the web page. One can choose whether the ads that are to be displayed should only be text ads or only image ads or both. Clicking on these ads will take you directly to the advertiser’s website. Upto 3 ad units can be placed on a single page.
Link Unit: In a link unit also ads are targeted depending on the content of the web page and occur in 6 different formats. Link unit displays 4 or 5 links without any description unlike the ad unit, where the ad generally consists of a short description. Link unit differs from an ad unit in another important way in that on clicking on a link displayed in the link unit, user is taken to a page that shows more relevant ads, instead of taking the user directly to an advertisers website. Upto 3 link units can be placed on a single page.
Advertisers bid for various keywords. And if these keywords are present on a website, ads will be rendered on that page. And the revenue generated when some one clicks on an ad depends on how much the advertiser has bid. Most of the ads that re rendered work on a CPC basis. That is the website owner gets paid only if the ad is clicked.
Adsense for search:
Adsense for search is simply including the Google search on your website. While set up itself one can choose whether to include the option of searching the website. That is the various pages Google has to search can be mentioned and thus the user visiting the website will be able to perform a regular Google search or search the website.
If a visitor to the website searches the web or the website using the Google search placed on the website, along with the search results at the top and bottom of the page, sponsored links will be displayed to the user. If the user clicks these sponsored links, the website owner gets paid for it. The ads being displayed and the amount of revenue generated al depends again on the same factors as that of adsense for content.
Referrals as the name suggests is referring users to use products such as adsense or adwords. Currently under referrals Google offers products under various categories Automotive, Business, Computers and Electronics etc. Under these categories are present various products which can be included so as to be placed on the website. Upto 15 products can be selected and these will rotate in the referral unit. The revenue generated to the publisher depends from product to product. Suppose if the product is adsense and a user has signed up for adsense by clicking on the adsense link on a website, that web site owner gets revenue in the following way:
When a publisher who signed up for Google Adsense through your referral earns US$5.00 within 180 days of sign-up, you will be credited with US$5.00. When that same publisher earns US$100.00 within 180 days of sign-up and is eligible for payment, you will be credited with an additional US$250.00. If, in any 180 day period, you refer 25 publishers who each earn more than US$100.00 and are all eligible for payment, you will be awarded a US$2,000.00 bonus.
Thus each product has its own set of rules for generating revenue.