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Lately there has been a lot of discussion on how to make tons of money with Google Adsense. In fact, many people are making the claim that Adsense sites can earn a higher revenue then an affiliate-marketing site.

So that brings us to an important question: Which is a better online business - Affiliate-Marketing sites or Google Adsense sites? 

Let's explore each one and then find out which online business is better option:


Google Adsense

How do you like the idea of earning m*ney without dealing with customers or answering emails. This is possible when you run a Google Adsense site. With Adsense sites, you can have a virtual passive-income that requires little maintaining. But is this the best option for an online business?

Here are the positives of Google Adsense sites:

· They are perfect for people who run information sites that have no related affiliate product

· You can set it and leave it. With Google Adsense, you can create a content page, and there is little need to update the content. 


· Adsense sites are easy to scale. Since they require little upkeep, you can easily create multiple websites that each make a nice income.

Here are the negatives of Google Adsense sites:

· They are not a great long term solution. Instead of getting your visitors to subscribe to a mailing list, you are focusing on getting people to click on ads. Real online businesses concentrate on building assets that can use for long-term growth.

· These sites are dependent on search engines. Most Google Adsense sites make the mistake of depending on search engines for the majority of their traffic. If the SE algorithms change then your income might drop significantly.



Affiliate Marketing

Being an affiliate marketer is great for those who want build a theme site. With this type of business, you can easily create web pages around a topic and get people to buy products through your products. If done correctly, you can easily build a loyal following that will help you make money for years to come. 

But can affiliate marketing make you more money then Google Adsense?

Here are the positives of affiliate marketing:

· A great advantage of affiliate-marketing is that you can build a long term business that will bring in a revenue stream for years.

· With affiliate-marketers you need to focus on building an email list. This list is a major asset of your business. Every time you have an offer, you can go to your list and increase your profits..

· Unlike Google Adsense sites, which only concentrates on high paying keywords, an affiliate marketing site can be centered on a topic that you have an interest in. 


Here are the negatives of affiliate marketing:

· You have to learn how to write persuasively and get people to purchase the product that you are recommending. For many people this is a difficult skill to learn.

· Each affiliate marketing site requires a lot of effort. You must spend a lot of time writing product reviews, building your email list and creating web content.


So which is better: Affiliate marketing or Google Adsense?

The answer is that both are great solutions for an online business. Instead of choosing one over the other, you should create websites that can take advantage of both.

Here is how you can do this:


1) Create a content site on a topic that you are interest in, while paying a good amount per Adsense click.

2) Integrate your Adsense into the menu bars and the top of your web content.

3) Add web pages for affiliate-products and your opt-in email list. But, make sure that you leave out the Adsense blocks on these pages. This way you are ensuring that you are building your long-term assets.

4) Create optimized web page articles that focus on a specific keyword phrase. Place your Google Adsense in these blocks.

5) Provide your email list with good content and product recommendations. Once in awhile, email your list and provide a link to some of your web articles. That way, you can earn a little bit of m*ney from your subscribers while giving them good content.

By focusing on both affiliate products and Google Adsense, you will be building both short-term and long-term profits.

The web has evolved into a complex "organism" which, to some, appears to have a life of its own. As the Internet has evolved, so too have online marketers and publishers. The dot-com balloon is said to have burst but savvy publishers have grabbed the coat tails of the Google search monster and employ Google AdSense on content-rich websites. Google AdSense, a pioneer for providing content-sensitive advertisements, has been a boon to webmasters looking for alternatives to amortize their web trafffic. 

How Does Google AdSense Work?
The concept is simple: The publisher or webmaster inserts a java script into a website. Each time the page is accessed, the java script pulls advertisements from Google's AdSense program. The ads are targeted and related to the content contained on the web page serving the ad. If a web surfer clicks on an advertisement served from Google, the webmaster serving the ad earns a portion of the money that the advertiser is paying Google for the click.

Google handles all the tracking and payments, ultimately providing an easy way for webmasters to display content-sensitive, targeted ads, without the headache of having to solicit advertisers, collect funds, monitor clicks or track statistics, any of which could easily become a full-time job. 

While Google AdSense, like many pay-per-click programs, is plagued by claims of click-fraud, it is clearly an effective revenue source for many reputable web businesses. There seems to be no shortage of advertisers in the AdWords program from which Google pulls the AdSense ads. Webmasters seem less concerned by the lack of information provided by Google and more interested in cashing their monthly checks from Google.

The Evolution of AdSense
While Google's initial system was fairly rudimentary, only providing publishers the option of displaying a handful of advertising formats, the technology behind even the first ads was anything but simplistic. The technology used to employ Google AdSense goes far beyond simple keyword or category matching. A complex algorithm is used to determine the content contained on the web page serving the ad. Once the content is assessed, and appropriate ads that contain related content are served.

Early on, Google implemented a system that allows publishers to filter advertisements from competitors or sites which they deemed inappropriate. Google also allows vendors to specify an alternative advertisement, in the unlikely event that Google is unable to provide related content ads. 

The Progression of Google
Google has come a long way in understanding the needs of publishers and webmasters. Google now offers a system that allows full ad customization. Webmasters can choose from twelve text ad formats and can customize Google advertisements to complement their website and fit into existing webpage layout. The options provided allow webmasters to select and create custom color palettes that match an existing website's color scheme, making the ads a much more natural fit. 

Many sites have been able to integrate ads into their site design using different ad formats. 

Sample sites with integrated ads:

Investing Partners - http://www.investing-partners.com 
Podcasting Tools - http://www.podcasting-tools.com . 
RSS Network - http://www.rss-network.com


Online Reports
Google recently took a huge step forward, providing publishers the ability to track their earnings based on webmaster-defined channels. Recent improvements to the Google AdSense reporting have resulted in webmasters having the capability to monitor an ad's performance with customizable online reports that can detail page impressions, clicks and click-through rates. Webmasters now have the ability to track specific ad formats, colors and pages within a website. Webmasters can quickly spot and track trends. The new flexible reporting tools allows webmasters to group web pages by URL, domain, ad type or category, providing webmasters insight into what pages, ads and domains are performing the best.

Reporting is real-time, allowing webmasters to quickly assess the effectiveness of any changes. The new reporting makes it significantly easier for webmasters to optimize and increase click-through rates. Optional reporting allows webmasters to monitor traffic, viewing both ad impressions and page impressions. 

Advertisers realize the benefits associated with having their ads served on targeted websites, increasing the likelihood that a prospective web surfer will have an interest in their product or service. 

Truth Still Not Revealed
Google still does not reveal what percentage of the advertising revenue earned is paid to the webmaster serving the ads, but they have made strides related to disclosure, recently lifting the ban preventing webmasters from disclosing the amount they earn through serving Google ads.

There are times Google's heralded ad affiliate program isn't in your long term business interest. Oh no I said it!

AdSense isn't the unstoppable revenue engine for every eBusiness. Before I am taken out and flogged by the eCommerce pundits -- please let me explain what I mean in my defense.

I make revenues from AdSense at a very high click-through rate. I experience high click-through rates with AdSense without resorting to questionable tactics like tricking site users with photos (the AdSense trick and tip dujour).

So my perspective is from one who has made decent income from AdSense to fund aspects of his business like advertising seminars -- and outsourcing to his virtual assistants. Yes, AdSense is a legitimate and significant revenue source. However evaluate AdSense with some type of balance.

By now you may have heard about people like Joel Comm's six figure income with AdSense, or Jason Calacanis of Weblogs being on his way to generating 1 million dollars in AdSense revenue. Google's Ad revenue sharing affiliate program for publishers certainly seems to be an eSales Nirvana for many webmasters.

But there are obvious and not so obvious times not to use AdSense ads on your sites. Let's list - examine - and explain them below.

~~~~> 1. On Sales or Mini-sites

This is a no-brainer. If you are trying to sell a particular product that is important to your bottomline, you don't want AdSense ads distracting your customers from either joining your email list, or hindering your site's online sales process.

However I do see hybrid sites that are mini-sites or full scale eCommerce sites, with AdSense at the bottom of their pages. This might not be so bad since only 1% - 15% of your site visitors will either buy from you or fill out a form.

The thinking with this approach is you might as well make money from disinterested parties using up your server's bandwidth.

~~~~~> 2. SEO Business Sites

If your livelihood depends on search engine optimization or marketing for a living you might want to think twice about displaying AdSense Ads on your site. I can tell you this from personal experience. I once was on top of MSN for search engine marketing in my local area. I concentrated on my local area because I found people felt more comfortable hiring an eCommerce consultant locally.

One day my site fails totally out of the MSN index. After intense study I noticed that I obviously had a filter on my site from MSN.

I analyzed all the top ranking sites in MSN and noticed the only difference between me and the other top ranking sites was I had Google AdSense ads on my site. Someone at MSN felt that my AdSense ads, and perhaps to a less extent, my book on SEO, was getting a free ride in the MSN search engine database.

In fact I noticed that there were no sites with AdSense ads for at least the first 3 pages. Plus the sites with AdSense were only using 1 ad unit at the bottom of the home page (there were very few of them in the top 5 pages).

I knew it was strange to not have AdSense ads on the top Internet marketing sites. This prompted me to scan other industries where I noticed the same trend.

Many of the leading SEO gurus have sites that have been banned from the top listings by the search engines. It seems the more visible you become, the more of a target your sites are to the search engine auditors.

Some of my sites are still on the top of MSN with AdSense ads but that doesn't mean they won't also be targets in the future.

Let's face the facts. MSN and Yahoo! have competing ad networks to Google's, and this competitive situation is rife for a potential backlash against SEO sites with AdSense ads.

Many SEOs will point to exceptions to this position. However you have been warned!

Think about it, how long will MSN and Yahoo! sit back and watch SEO driven websites use their search indexes to fund Google? Did you know SEO in MSN and Yahoo(!) --- is much easier to obtain.

Therefore optimized sites are creating an ad sales wealth transfer from MSN and Yahoo into the pockets of Google! It won't be long before Yahoo! and MSN begin to devalue ranking on AdSense sites in their databases -- if not outright ban them.

If you are in the search engine business stay search engine neutral, or create multiple sites for different search engines.

~~~~~> 3. When AdSense Becomes Your Only Business Model

When you become so myopic in your thinking that you build a business solely on AdSense revenue -- think again my friend. Why build a business solely on the largess of Google?

I don't know if your realize it or not, but the sites making the real big AdSense money usually have a following that doesn't depend on the search engines. Internet mavens like Chris Pirillo or Joel Comm have been on the Internet a while and have followings for their websites. Therefore they can consistently make six figures with AdSense.

These content powerhouses are an asset to Google and not the other way around. But do you think Google is going to sit back and watch just anybody make big bucks off of their top rankings?

If you do a search on most keywords you will notice many of the top ranking sites are news sites, .gov sites, or .org sites these days. The only exception is in industries where these sites don't really exist like eCommerce industries (clothing, shopping, etc.).

No doubt in most industries you will notice a conspicuous scarity of AdSense sites in the top rankings. In other words don't bet your future fortunes on AdSense.

An IPO based on projections of AdSense revenue isn't in the future for the average eBusiness. Think of Google AdSense as supplemental income. Building a business solely on AdSense revenue isn't just silly -- it's just plain stupid.

Google Adsense is one of the easiest way to allow webmasters to make money from content websites. You just need to add some simple javascript codes on the web pages, and then when visitors click the ads, you make money. No need to sell and think yourself, Google does all thinking for you. Very easy, right?

Google Adsense is really a gold mine. People are creating niche websites just to display the ads and make easy money everyday - automatically. There are so many success stories about people earning thousands of dollars a month from Adsense!

If you don’t have an Adsense account yet, you should get one and start profiting from it!

However, not all who applied for an Adsense account gets approved. You need to show your content websites to Google first to get approved.

Then how if you don’t have a content website? No need to worry, here is a secret method to get approved - fast and easily - just read on...

Google has its own blogging service - Blogger.com (http://www.blogger.com/). You can start a blog on Blogger.com with any topics you like - and it is completely free. Once your blog is created, post two or more related articles on it. Wait for a day and then you can apply your blog for an adsense account using this link:
http://www.marktse.com/recommend/google-adsense/

Wow, your Adsense account will get approved in several days. Happy profiting from Adsense! 

About the author:
This article is written by Mark Tse. Mark shares free tips, articles and downloads about Internet Marketing. You can visit his blog and read his latest posts here: