Pay-per-click advertising (or PPC for short), for the uninitiated, is to simply add ads to your website
that are supplied by certain companies, where they pay you a commission for every one that gets clicked on.
Some ads appear as text-based units, others as links. But most of them are based on keywords —
like Google AdWords and AdSense, which are the most popular ones.
Advertisers who wish to have their ads displayed bid on keywords that hopefully relate to your content.
If the keywords they're bidding on are found in your content, then their ads dynamically appear on your site. (This is what
"contextual advertising" means.)
Now, here's the kicker: while some keywords are popular, others are so competitive and bidded on so
zealously that a click can result into a very nice payout.
For instance, an average click results in a commission of less than a dollar.
But some can go as high as $50 or more per click!
And that's why you hear success stories of ad publishers making a fortune online. They know tricks
and strategies that not only encourage higher clickthroughs but also how to promote ads based on high-paying keywords
that result in gigantic commission checks.
In fact, at conference in Los Angeles, Joel Comm, who wrote the book on making money with pay-per-click
ads, publicly stated...
"I Made Over $25,000 In One Month,
And Always Make No Less Than $10,000
A Month
With Google AdSense Alone!
On the other hand, affiliate programs help online sellers promote their products through
affiliates. Affiliates earn a commission if someone they refer buys.
Some of the hottest and most well-known affiliate programs out there are Clickbank
and the "granddaddy" of them all, Amazon.com. You simply promote their products and, if someone you refer buys, you get a
commission.
But keep in mind, they're not the only ones.
Many other marketplaces exist, such as Commission Junction and Digital River. Most Internet marketers
own or manage an affiliate program in which you can enroll.
Don't discount these. Some people make huge and consistent commissions with affiliate programs
alone.
For instance, another friend of mine, Jeff Johnson, has generated $454,096.78 in Amazon.com affiliate
sales in his first three months. Yes, just Amazon.com!
Others have reported five- and six-figure incomes promoting Clickbank products alone.