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Well, with this information we have some very important metrics related to a keyword: how
many searches there are per month for that keyword and what the value of that keyword is
as a paid lead (also known as the Cost-Per-Click or CPC). We also know what percentage
of traffic a #1 ranking in Google will bring on average: 42%. We also know how much
Google pays it's publishers (i.e. the people who place their Google Adsense on their web-
site): 68%. We also know the percentage of people who land on your website that will click
on a paid link from Google on average (assuming good Ad placement): 4%.
So what can we do with all these numbers?
We can calculate the minimum amount of money a website can make monthly when it
ranks for a specific keyword in Google. I say minimum because Google Adsense is gener-
ally the lowest money making method for monetizing a website online. It is also the easiest
and that is why it is the introductory method I use, but once you become more experien-
ced in making money online, you will learn other monetization methods that can make you
much more money with the same amount of traffic to your websites.
So how do I calculate the amount of money a website can make if it ranks #1 for a specific
keyword?
The formula is:
(Number of Searches) * (Cost Per Click) * (.42) * (.68) * (.04)
The .42 is the average percentage of visitors that will land on a website that ranks #1, the
.68 is the percentage of earnings that Google will pay its publishers, and the .04 is the av-
erage percentage of people who will click on your website when they land on your page.
So if for example, you look up the keyword "mountain bikes" and find that it is searched
for on average 45,000 times and has an average CPC of $1.00, this would be its monthly
potential:
(45,000) * (1.00) * (.42) * (.68) * (.04) = $514.08
You would earn about $514.08 in passive income if your website ranked #1 in Google for
"mountain bikes" and you put Google Adsense on your website. If you were to monetize
with something like Amazon Associates, Ebay Affiliate Network, Commission Junction,
or something else, your earnings could be much higher than that.
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