I know there’s already a million other posts giving step by step instructions on exactly what to do to make money with adsense but there’s no harm in giving another example. It’s probably one of the most simplest ways of generating an extra source of income through advertising but it certainly isn’t easy to generate a decent amount with so much competition already online.

A few things to consider before you start off.

1/ Niche Market - Pick the right niche market to focus your website on. Preferably something you know a lot about or are passionate about. Don’t make the mistake I did, choosing markets that apparently have high cpc. I even bought an ebook book that outlines over 10,000 high paying keywords which wasn’t helpful at all. The problem with all the high paying keywords is that “smart pricing” kicks into play, a system of payment that Google has developed to judge how much an ad is worth and it purely relies on the quality of the traffic and the popularity of a site. No one knows the exact method of how Google calculates this but do expect minimal payment per click at the start. Over time it will increase.

2/ Keywords Competition and Content- This is something I always do before starting out with any website. Whats even more important though, particularly with contextual advertising, is that you need hundreds and hundreds of pages, pretty much flooding your site with keywords, and pick a few keywords per page. I never just focus on one or two keywords for my sites. Try to aim for thousands of keywords and the only way to do this is to have thousands of pages. Now how would you do this? Here’s a couple of examples (and these are ideas I haven’t implemented so feel free to use them):

- If you do a site on Celebrities, you have content on every celebrity you could think of and this will be an endless list. Even divide them into groups like singers, actors, comedians etc. You could easily get a few thousand pages here.

- What about video games? Again there’s an endless list of PC games, Playstation, Xbox, PSP etc. There’s a huge trend in video gaming as well and content can be easily written for new games coming out.

Im going to keep things simple and just have those 2 points to consider before starting a project. From here, these are the steps you need to take to make it happen:

1/ Website Design - It is so important to have this figured out first. You can either create the design yourself or outsource this to someone else. I actually paid someone through Rentacoder to design my sites for a cheap price.

2/ Hosting and Domain - I won’t go into too much detail here. You’ll obviously need this with any site. Pay for a domain. Don’t be cheap and get a free one. Think carefully about what the domain name is cause keywords count here too.

3/ Content - Start going absolutely nuts with gathering content. Again, I found a few writers through Rentacoder. Paid from $7-$12 USDfor each 500 word article. Start uploading the content cause search engines these days love fresh content.

4/ Get links - If the content you provide is good quality, people should link to you anyway. Here’s a great page on how to get more links.

5/ Implement Adsense - There’s a lot of testing involved here but the best performing ads format from experience is the following:

Medium Rectangle (300 x 250)
Large Rectangle (336 x 280)
Square (250 x 250)

Every site is different though so you need to constantly test to see which one is performing better for your site.

Repeats steps 3 and 4 over and over again. It took me 1 year to reach 200+ pages before I started hitting $20+ everyday. So its entirely up to you how fast you want to earn this amount of money.

Here’s another money making system developed by an ex army combat soldier.