Articles Comments

Wealthifier – Internet, Affiliate, Email and Information Marketing…Teaching You How to Make Money Online » Money-Making Basics » Basic Search Engine Workings and the Money That Flows Through Them…

Basic Search Engine Workings and the Money That Flows Through Them…

There are some very important basic pieces of information I find myself telling different people all the time about the business of making money online.

People, in general, have some serious misconceptions about how money is made, especially through advertising.

The most basic misconception is how Google searches and ads work…

Here’s a mile-high description that should give you a good overview:


  • Google ranks sites in it’s search results by certain closely-guarded criteria.
  • The higher the score the site gets from Google’s algorithms, the farther up the search results ranking the site will get.
  • The highest ranking will get the first result on page 1.
  • The art and science of improving these rankings for a site is called SEO (Search Engine Optimization).
  • Having a site high in ranking in search results is extremely important because a HUGE majority of the traffic a site will get from search engines will come from high on the first page of results.
  • Depending on the item being searched for, this could mean the difference between getting 50,000 people coming per day to your site versus 5.
  • Traffic on the first page of Google results falls drastically from top to bottom.  The first site listed might get 60% of traffic, the 2nd might get 20%, while the 3rd and 4th get 5% and 2% respectively.  The remainder of the traffic follows the same rough pattern.


Google AdSense is a neat little program that allows a website owner to place a block of Google ads on their website and get paid every time someone clicks on the ad.

  • Google reads your website and changes the type of ads based on the content on your site.
  • For example, if you are talking about golf clubs on your site, then ads related to golf will be displayed in the space you’ve allocated to AdSense.
  • Ads have keywords associated with them that help the search engine match content to ads.
  • “Golf clubs” would be the keyword that is used by the search engine to determine which ads are placed.
  • Not all ads are equal.  Some keywords earn a website owner far more than others.  The worth of a keyword is determined through several factors like how many people search for it and how many ads are competing for that keyword.

Google AdWords is the flip side of the coin.  It is the program that advertisers use to place their ads on other websites.

  • Advertisers with products to sell agree to pay a certain amount of money per click for traffic through Google.
  • As discussed above, keywords have different prices-per-click.  Some are pennies while others are dozens of dollars per click, all determined through several factors.
  • Google takes their commission out of the price-per-click before passing the remainder on to the website owners who used AdSense on their website and had people click on the ad.

In the most basic form, here’s an example of the flow of money:

  1. Bob creates a website with content about goldfish, and places AdSense on it.
  2. Bob’s website gets many people each day reading the content about goldfish, based on how the site ranks in Google.
  3. One of these people, Eric, clicks on an ad on the page for Goldfish Food.
  4. This click sends Eric to a site that Sam created that sells Goldfish Food.
  5. Eric buys or doesn’t buy the Goldfish Food.
  6. Sam pays Google 25 cents that month for the click that Eric made on his AdWords Ad.
  7. Google pays Bob 20 cents that month for providing Eric the ad to click.

This shows you just how easy Google makes money for itself and other people.  Just how much money is a topic for another article, especially in comparison to other advertising methods…

Related Posts:



Written by

Filed under: Money-Making Basics · Tags: , , , , , , , , , ,

Leave a Reply


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>