Making money online and traffic, Interrelated?

Amarnath Prabhakar November 24, 2008 0

This is a bright question, should we be worried about traffic at all when our motive is to make money online? You bet.

We know there are two major types of advertisement options which are the cost per click (CPC) and the cost per impression (CPM). There is ofcourse another, Cost per action (CPA) and we will keep this model for advertisement out of this calculation.

Everytime a visitor visits a blog or a website the likeliness of the visitor clicking on an advertisement is very rare. Per historical data we know that the number of ads clicked are with probability of 1%. 

Which means that when there are 100 visitors there is a chance, (just a chance) that an ad is clicked. Looking at the other advertisement option which is CPM, major advertising mediators like adsense, chitika, adbrite, etc., pay webmasters about $0.01 for 200 pageviews. This is not a fixed amount and depends a lot on the value of the website itself.

The value of the website is determined by

- the number of external links

- the search engine ranking

- the traffic it generates

Now, if you are able to receive 200 pageviews then you would get $0.01 and if you are to grow your traffic 10 times per day then you would get 10 cents paid just on the number of visitors and the number of page views that these visitors make. This is without even considering the number of clicks on Cost per click advertising model.

Traffic is a quintessential factor in your blogging life whether you are blogging to make money online or to gain recognition to your writing/work. What ever be the motive behind you writing a blog, traffic is very important to fulfil the needs of yours. 

Once you can achieve greater traffic then you can get more revenue from various other advertising models and advertisers. The advertisers will be a lot more confident in freezing the ROI which will ease striking deals with advertisers.

Many third party ad services consider traffic as a measurement before they set a price for advertising slots on your blog. So, instead of wanting to be convinced about the importance of traffic for a blog through posts like the one you just read, ensure that you are already in the path of gaining more traffic. More the traffic better the potential to make more money online through blogs.

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