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How to Monetize Your Website

May 8, 2008

Internet Marketing

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.

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50 Comments For This Post

  1. Claudio Corti Says:

    Nice article, and really nice WordPress Theme ;)

  2. Admin Says:

    Thanks Claudio. I am glad you like the article and theme. I hope you will come back and read/comment again soon.

  3. Affiliate Marketing Report Says:

    Great post! Always nice to read this kind of quality information, without the BS and hype ;) Thanks for sharing, Robert

  4. Mohammed Says:

    Some good tips their to monetize a website. Heres another for our many webmasters, how about submitting your site to web directories to get more hits and search engine visits.

    I own a gaming-related website directory at http://www.GamersCommunity.net so if you have a video game site you can submit your site for free!

  5. Zarray Says:

    Nice article, but it doesn’t realy goes deep into the subject

  6. Maxim Says:

    good article. Thanks

  7. SEO India Says:

    Nice info.. :)

  8. corbyboy Says:

    I have always held the belief that monetizing low traffic websites is completely pointless.

    When you are just starting out, promotion and content should be your sole focus. In fact, until you have a decent number of visitors, don’t put any ads on your blog at all.

  9. amine Says:

    hi, very good article and tips i like your work with this niche thanx

  10. Webmasters Marketplace Says:

    Thanks for listing various monetization techniques. :)

  11. Manoj Says:

    I think a well balance of affiliate sales and ads is a must to get more profit out of a website. You mentioned it right. Thanks

  12. ShuwiX Says:

    Nice thread.

    Hope I don’t piss blogger (If yes, just remove my link) here if I post my blogpost about monetizing expired domains:

    http://www.webmasterinter.net/2008/09/expired-domains-with-pagerank-and-backlinks-selling

  13. Shuwix Says:

    What about buying expired domains at aftermarket and selling PR backlinks to people who are too new to understand PR means nothing today if it’s not made by relevant links.
    That’s probably easiest way and very profitable cause You can get plenty of domains daily and sell backlinks until the pagerank vanish which will bring 300+400% profit in one year.

  14. SEO optimization Says:

    Good article. Thanks for the tips. What do you think of PPC? The work you have done on this page contributes to the overall purpose ofSEO optimization.  Crown SEO, Ltd. specializes in SEO optimization with many Google successes for its clients through reading and understanding excellent articles such as this.

  15. Ted Murphy Says:

    I’ve started a new way for a blogger to get paid — direct payment from the audience on a per-minute basis.

  16. Brad Says:

    Thanks for a great post, especially the bit on selling your site.

    http://www.top-share.com

  17. James Says:

    Great article, interesting points on selling your site.

  18. Webmaster Says:

    Thanks a lot for sharing this useful information. Affiliate programs seem to me a good option. :)

  19. Roger Says:

    Great blog!

    I’d also like to warn webmasters that are using affiliate programs to monetize their website to beware of toll-free numbers on their landing pages. I have lost sales in the past by linking to affiliate landing pages that feature a toll-free number. If it’s not too obvious it’ll probably have little effect but landing pages that feature them may be stealing sales.

    Roger

  20. 0bones - Free social web host Says:

    You could also add upsale to the list. For instance, I offer a free hosting service to anyone. Now when they reach the set limits on their account, we tell them they need to upgrade to a paying term in order to continue the website. This can only work in some situations though

  21. free article directory Says:

    Consigli molto utili…articolo molto interessante!

  22. utah webdevelopment Says:

    Out of all the options you listed, Google Adsense is my favorite. Great article, and great blog.

  23. kuemi lee Says:

    I did not get your point on this.

  24. webdesign duisburg Says:

    Thanks Claudio. Great Post!

  25. Sharonda Steinhoff Says:

    I dont usually reply to posts but I will in this case. WoW :)

  26. Alejandro Wilson Says:

    Wow! Thank you! I always wanted to write in my site something like that. Can I take part of your post to my blog?

  27. Admin Says:

    Thanks Alejandro. Sure, you can use the info from my post. Just be sure to include a link back to my site/post.

  28. Liam Says:

    I think low traffic sites can still monetize if some thought is put into how they wish to monetize.

    With ranges from direct sales, affiliate sales, PPC, CPM, microtransactions, donations, etc……there is always something out there that will fit neatly with your website and its target audience.

    Also, use of such monetization methods are important. For instance, if you have PPC ads on the top and bottom of your site, you may get a few clicks as people pass over them…….but this situation could be improved if……(a bit of shameless promotion now)…….you used an API like that found at tag-box.com, you would generate a focal point for your users to pool to. Couple that with your PPC code in the API header and you could start paying back the cost of your website in no time! :-D

  29. Waseem Says:

    i reached this informative link by search engine. nice post

  30. Admin Says:

    Thanks Waseem. I appreciate it. I hope you will come back and read some more.

  31. Irfan Says:

    Great information,i will always looking these like information,nice dear,its amazing

  32. Torrent Traffic Says:

    Great post for sure, I agree 100%. It seems however, that there are different times to sell sites some might be a lot more profitable and others may not. I’m actually in the process of selling another site.

    Cheers
    Eric

  33. Devin Says:

    Bonjour! nice stuff you have up there, check out my blog too

  34. mr. traffic Says:

    Traffic exchange is an example of a way to get noticed also. Not sure how many people use them but they still work.

  35. search engine optimization company Says:

    it is the best step by step way of monetizing your website…this article will be very useful for all the programmers in the world…. if you follow this rule…your website will be very successful…

  36. Article and Link Directory Says:

    Great article, i use some of these on both of my sites a great way to bring in money.

  37. Admin Says:

    Thanks for the comment. Glad you liked the article. I hope you will return and explore the rest of the blog.

  38. PHP Scripts Says:

    For my part, I think that the best way to attract visitors to your website to increase his value is by giving free stuff or free tools.

  39. Banner Design Says:

    The biggest issue in monetizing the websites is having strong and targeted traffic which would in the long term assist the portals gaining visibility shares across the net.

    When you have a site being visited by many people on a regular basis, you would have a lot of solutions and ideas in mind for generating cash from it.

  40. Buy/Sell Ad Space Says:

    It’s also possible to auction off ad spots on your site at Bidswamp.com

  41. Admin Says:

    Great tip. Thanks for joining the conversation. I’ll check out the site you mentioned. Thanks again.

  42. Read Articles Says:

    Great article! Monetizing your site by making space available for advertisers is always a good way to earn money with a site. I need to work on that a bit more myself.

    Thanks for the info.

    -Becca-

  43. Webmastersbb Says:

    Thanks for the sweet tips, loooking more from you bro. Thanks

  44. Hot Deals Says:

    Good writing, got some ideas from you, thank for sharing!

  45. SEO Long Island Says:

    I have to agree 100% with the author of this article. Monetizing a website is almost every webmasters primary goal. I recommend not monetizing immediately as I have found that the search engines favor new sites who are ad free.

    I usually add contextual ads after 6 months of operation – I did this here http://www.jdmag.com

    As a Long Island SEO Company I have a lot of experiences with how Google and other engines index sites. This fact I mentioned above stands true for many of my clients so I can speak with confidence on this topic!

  46. johoo Says:

    Great, thank you admin for this. ;)

  47. Rasco Says:

    I think that for websites with good traffic it will be good choise to use ad networks which pays for displays of ads in CPM model like poponclick.com or others, it depends offcourse of preffered type of ad.

  48. David Says:

    i love your blog,really nice

  49. Help Desk Says:

    Thanks for posting this. I have another question, does google adsense work in sub-domains? For example sites under freewebs or webs or weebly.

  50. Webmaster Says:

    I find only google adsense is worth it!

1 Trackbacks For This Post

  1. How to monetize your website Says:

    [...] How to monetize your website 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. How to Monetize Your Website | Webmaster Blog [...]

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