1. Pay-per-click advertising networks

Pay per click (PPC) advertising networks – is an internet advertising model used by search engines, advertising networks, where advertiser pays money for each click and the ad publisher receives money for each click. Search engines and advertising networks serve as go-between agent, who manage all advertising process. In pay-per-click networks the money paid only and only for clicks. The publisher may show the ads thousands of time, but until someone clicks it, the ad publisher will not get a penny. Of course advertisers pay much more, than the ad publisher gets from the click. The difference between the cost per click for advertiser and cost per click for ad publisher is the revenue of the advertising network. Let’s look at it on one example: for example the cost per click for advertiser is $1.00. So once someone click the advertiser pays $1.00 to the advertising network. In the same time the advertising network pays back the publisher in average from 20%-50% of the amount. In this case $0.20-$0.50 is the revenue of the publisher. The rest $0.50-$0.80 is the revenue of the advertising network.

The cost per click is based on the popularity of current keyword, the competition of advertisers. For example advertising on auto insurance, car insurance will cost you approximately $30 per click. But in the same time advertising on pet foods keyword will cost you just $0.98 per click.
I hope you understand the main idea.

The profitability of PPC campaign depends on traffic level of the website, click through rate (CTR) and cost per click (CPC). The CPC depends on the design of the website and ads. Default Google design Ads with blue color of the links or links blended with content, tend to get higher CTRs. The CPC, on the other hand, does not depend on the website design. Insurance, mortgages, real estate, financial products, education are examples of profitable niches (clicks worth a couple of dollars are not rare), while tech-related, social topics tend to get a smaller CPC. Sometimes as low as a couple of cents per click.

2. Affiliate Marketing

Affiliate marketing is an Internet-based marketing practice where there is a merchant that is willing to let other people (affiliates) sell directly or indirectly its products or services, in exchange for a commission charges. This type of advertising is also called CPA (cost per action).
This commission can be fixed or floating.
Fixed rate means for the definite action you get the fixed commission.
The floating commission means for the various action you get various commission.
For instance you get 50% on all the products you sell from your website. If you sell the product, which costs $100, you will get $50, but when you sell product, which costs $500, you will get $250.

How the affiliate marketing works?

Let me show you this on example.
Let us assume I’m searching for books on search engine optimization. I go to google type in books search engine optimization. I get the list of thousands links. Then I click link X. I find the book, read the review and decided to buy it. I make the order on the website X and get my book. I’m the customer.
If the website X sells the book of someone’s else, it acts as affiliate. The owner get my order, process it and return the commission the website X. If the owner of website X sells his own products, then no commission applies.
Please take a look at the image below how the affiliate marketing works.

You can find affiliates by yourself searching the web of you can use the services of affiliate marketing networks. Of course the affiliate marketing networks get their commission too. It’s up to you how to work, but if you’re newbie to internet marketing I suggest you to use the affiliate marketing networks.

Here is the list of largest networks:

3. Selling your own products

Another good way to make money on your website is to sell your own products.
You can sell:
1) real products
2) info products

In this article will speak about selling info products, because this is much simpler. For example, you write your own book, make a podcast. Then place these material on your website, and you’re willing to sell them. When somebody orders it, then this material is available for customer for download. It’s much easier to deal with info products, then real products, because you do not have a headache about the delivery. Besides that on affiliate marketing there are much bigger commissions on info products then real products.

Selling your own products is very simple:
Step1: create a product
Step2: place it on your website
Step3: process the orders

OR another option, which is more profitable, but more complex: sell your own products not only from your website, but from affiliate website
Step1: create a product
Step2: affiliate partnership
Step3: process all orders

The major difficulty about selling your own products is to create your own product. Not everybody is ready to make this step. It should be really something worth to make wow-effect.