It is the aim of every Webmaster and website publisher that the costs of creating a website be recouped from the website itself. In other words, the website should be able to pay for itself and ultimately generate a profit. While many websites are created simply to provide information to users, many more are conceived with an economic goal in mind. But how do you design a website that converts into sales and turns a profit at the end of the day?

Website monetization, defined as converting your website traffic into revenue, can take many forms:

Contextual Ad Programs

Contextual ad programs, such as Google AdSense, show contextually relevant ads on your website and then split the revenue with you derived from those ads. You simply place some code on your site and the ad program (Google AdSense) does the rest. Google analyzes your page and places relevant text or image ads on your page. So if you web page is about baking, then the ads shown would be about baking. When a visitor to your site clicks on one of these ads, you make money.

Affiliate Programs

Another way to monetize your website is through affiliate programs. Affiliate programs allow you to earn a commission for referring someone to another site who makes a purchase. Affiliate programs are a win win proposition for businesses and affiliates. Business get promotion and sales at no cost to them and affiliates get the opportunity to earn money without the expense of selling products themselves.

Amazon.com was one of the earliest sites to offer an affiliate program and their program remains very popular today. Becoming an affiliate can be extremely lucrative if you know what you are doing.

Direct Ad Sales

For almost as long as there have been websites, there have been ads displayed on those sites. If you’ve got your own website, you can sell your own advertisements and keep 100% of the profit. There are many forms of advertising you can sell on your site. These include, banner ads in various sizes, text links, and paid reviews. Include information on your site about the benefits and costs of advertising on your site as well as your contact information. You can also choose to outsource your advertising to sites such as textlinkads.com. These sites will assess your site’s value and help you set a reasonable price for your ads. They handle all of the hassle of communicating with the advertiser and collecting the money but they also take a cut of your earnings.

Sell Your Site

Another way to monetize your site is by selling it. Once your site is earning money, it becomes an asset and has real value. A typical valuation method for setting a website's price is twelve times a site's monthly profit. So for example, if your site was generating $100 a month in profit, you might expect to sell the site for $1,200. You could of course get more than this amount if you found the right buyer.