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panies around the world. And whenever a regular searcher clicks on one of those paid links,
the owner of that link pays Google for that click.
With millions of searches every single day, Google pulls in A LOT of money. And it makes
sense that companies would pay for links, and this is why: Let's say that you are Nike and
you know that 1 out of every 50 people that searches for "shoes" online will buy a pair of
shoes if they land on www.nike.com. With this knowledge, you can calculate how much
you could spend on a Pay-Per-Click (PPC) campaign with Google and be profitable. If the
average pair of shoes makes Nike a $50 profit and each click costs an average of $.50, then
out of every 50 clicks you pay for, at least one pair of shoes will sell, and therefore you
will make a $25 profit (you paid $25 for 50 leads and made $50 profit off of the sale). In
other words, if the leads from Google cost you less than amount of profit from those leads,
it makes sense to set up a PPC campaign with Google and get your links on the top of the
search results.
And Google just pulls in the money from all the companies out there that are doing this,
even if it's just a dollar or two at a time (don't forget how many searches there are per day
on Google though).
So how does this translate to regular people like ourselves making money online?
Well Google has a program called Google Adsense which allows website owners to put
those same paid links on their own websites. And when someone clicks on one of those
links on one of those websites, that company pays Google, and then Google pays the web-
site owner a portion of that money.
Therefore, the first step to making a passive income online is to make a website that gener-
ates traffic, and the most basic way to monetize that traffic is with Google Adsense.
This is the foundation of everything I teach on my video lessons blog: how to generate free
traffic to your websites and how to monetize that traffic. The simplest monetization method
to implement is Google Adsense, but eventually I will teach you other monetization tech-
niques for you to test that can result in much higher eCPM (earnings per thousand impres-
sions).
