$3 Keyword paying 50cents?

Adeel asks:
Few days ago I found a keyword paying more than 1 us dollar per click (if clicked by visitor it should have given 3 dollars) but it’s giving me half a dollar when clicked by visitors. The blog is new and has only 4 posts till now. Can you tell me why it’s not paying me maximum?

Answer:
The $3 that was shown against a keyword is what advertisers are willing to pay for that keyword and not what you will get when someone click on an ad (related to that keyword)

Advertisers will be bidding for the first position for a particular keyword. When the number of advertisers bidding for a keyword increase, the bid values increase too, pushing it (the keyword) into the high paying league.

When an advertiser pays $3, you should be aware that a portion of it will go to Google and only what is remaining is paid to you. As for now, Google hasn’t published the percent that they take.

Again, there is something called smart pricing that comes into picture in this case. This depends on how useful (to the advertiser) the leads you send to the advertisers’ sites are. If you can send more visitors who buy (or does something that an advertiser wants) to their site, they will be willing to pay more for each of your visitors. This will highly increase you earnings.
Stay tuned while we come up with an article on smart pricing!