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How To Make Money With Advertising

Many web sites have made money with advertising (selling banner or other advertising space) although this has become an increasingly difficult field for small/home-business web sites to operate in.

Banner advertising is usually sold on a cost per thousand impressions (CPM) basis. This means the amount paid to the web site publisher is based on how many thousands of times the advertiser's banner is shown.

Sites which attract a targeted audience or an attractive demographic (people with money to spend or an interest in advertisers' products) are most attractive to advertisers.

The main difficulties with this approach is:
  • You need a lot visitors - banner impressions - to make this viable.
  • It is very hard, and getting hard for unknown sites to sell advertising space direct to advertisers (maybe you can work round this obstacle by working in an industry which you already have contacts in and can approach companies directly?)
  • Banner advertising rates per thousand impressions are very low except when the site has a highly in-demand audience.
  • You can join advertising networks such as Engage, Burst, or DoubleClick - but you (a) need a very attractive site, (b) may receive very low rates for your space, (c) may have difficulty getting in, as these networks are struggling to sell the space from their existing networks of sites.
In summary, advertising revenue can work but needs very careful planning. In fact, if you are starting out now, I would advise you to think carefully before making advertising your many/only revenue source - look also at affiliate programs as an alternative or additional source of revenue.


Advantages
  • You concentrate on building your web site's content.

Disadvantages
  • You need to be good at attracting (lots of) visitors to your site(s).
  • You need to find advertisers and sell your space to them.
  • It's an extremely tough market for Internet advertising right now.

Step-by-step Plan
  1. Set up Your Web Site

    You will need:



  2. Marketing Your Site

    Read the rest of this site.

    Review the following free information sites:


    Consider purchasing (and reading and following the ideas) in one or more of these courses:



 
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