Thursday, October 12, 2006

Today's Edition of Making Sense of Adsense

My wife, sent this article (http://www.johnchow.com/...google-whores/). To motivate me or anger me? Who's to say.

Anyways, the cool part of this piece are the hard numbers. While the other contender sites only mention how much they net, the first two show off traffic numbers. I could make a million dollars tomorrow, but it might cost me $1.2M to do it. These guys seems to pull it off and here's some of my math:
Lucky Pageviews/mo. Mean Load Bandwidth Viewer Cost Adsense Take Profit Cash per User Cash Per Click
Bastards (users) (KB) (GB) $ $ $

PlentyofFish.com 500000000 7 3500 $ 21,000.00 $ 300,000.00 $279,000.00 $ 0.00060 $ 0.02
Digg.com 200000000 11 2200 $ 13,200.00 $ 250,000.00 $236,800.00 $ 0.00125 $ 0.03

On top of bandwidth there are plenty of other costs : hosting, tech support, et cetera. But these other expenses would be incurred regardless of bandwidth. Bandwidth is the bill that threatened to torpedo YouTube.com. The cash per user is simple math on the Adsense take divided by the pageviews. Cash per click is the same number divided by the usual clickthrough rate: 0.04%.

This proves that if you can get your numbers up, you can make a profit. The precarious part: what happens if your bandwidth gets into five digits on the month before your Adsense hits the six digits.

No comments: