100,000 per Month From Adsense?

Ramesh asks:
I want to earn 1 lakh per month in Google adsense. What should I do?
Pls tell me so that I can work hard in that way.
one lakh per month from adsense
Answer:
This is an interesting question from Ramesh. Yes it’s possible to earn a lakh per month from Adsense. Let’s see what it takes!

I don’t know what kind of website you have, nor do I know your traffic figures. Let’s assume a few things to proceed.

At present your
CTR = 2%
Page views per visit = 2
CPC = $0.1

Here we go...
Say you have 3000 visitors per day at present, then
Earnings = 3000 x page views per user x CTR x CPC
= 3000 x 2 x .02 x 0.1
= $12
= $360 a month
= Rs 14400 a month [1 USD = Rs 40]

Now, how can we increase this to Rs 100,000 a month?
There are two sets of things that we can work on, one set that can be achieved almost instantaneously and another, which takes time.

Instant Increase
There are a set of things that you can do to increase your earnings instantly. They are
Increasing your CTR
This can almost be achieved instantly by choosing better placements for your ads, the right colours for them and the right format. We have a series of articles on increasing your CTR published every Wednesday. By following those, let’s say you manage to get a CTR of 4%.

Increasing the number of page views per visit
By using effective internal linking and providing catchy headlines, you can increase the page views per user to great extend. Let’s say you manage to make this 4 after a series of modifications on your pages.

Now let’s have a quick calculation based on your new figures.

CTR = 4%
Page views per visit = 4
CPC = $0.1

Here we go.
Let your traffic remain the same. Ie; 3000 visitors per day, then
Earnings = 3000 x page views per user x CTR x CPC
= 3000 x 4 x .04 x 0.1
= $48
= $1440 a month
= Rs 57600 a month [1 USD = Rs 40]


Gradual Increase
Now that you earn Rs 57600 a month for your present traffic, there are a set of things that you can use to make it touch the Rs 1 lakh mark. They are

Search Engine Rankings
You can do a lot of optimization on your pages and get some better rankings. Even the traffic I have mentioned above is not possible to acheive without a good search engine presence.

Traffic
Just think that you if you are able to double your traffic, you will almost double your income too. It could easily touch the 1 lakh mark. But it’s not that easy to simply double your stable existing traffic.

CPC
Find the keywords that are better paying than the one we used ($0.1). There are such keywords in most industries. You can write pages on such keywords, add these pages to your existing site, drive existing traffic to these pages and better monetize. You learn how to use high paying keywords from this article.

Now let’s recalculate with an increased traffic and a better CPC (slightly increased).

CTR = 4%
Page views per visit = 4
CPC = $0.15

Say your new traffic is 3750 per day visitors at present, then
Earnings = 3750 x page views per user x CTR x CPC
= 3750 x 4 x .04 x 0.15
= $90
= $2700 a month
= Rs 108,000 a month [1 USD = Rs 40]

And Yes, you have made it!

While this seems so simple on paper, it may not be that easy.
All the best!

NB: I don’t earn this much! :)

13 comments:

Anonymous said...

Rakesh, nice reply to an ambitious question!

I am personally a winner wid adsense, though wid very lil knowledge abt the intricacies of adsense. Jus came across ur blog, and its so informative and am almost rearranging ma blog like urs... he hehe.. ny wayz,,, ppl need to understand one major thing.. Earning wid adsense is not easy and it may take months or years to make enough money...!

But one gr8 thing is, it always pays, if u work sincerely..!

Rakesh said...

@ Anonymous

Glad to know that you found the answer nice!

I very well agree to you that adsense is not a 'get rich quick' scheme. Many new publishers make the mistake of violating the ToS for short term benifits. It would be great if they focus on long term goals!

And for sure, it pays for your effort.

I feel that you can take your adsense success to the next level, if you understand the intricacies as well! Just a suggestion. :)

Anonymous said...

thanx rakesh..! i just din have adsense in mind at first... i just added things in my blog for killing time.. only when i received my first check i took it seriously...

now, am learnin from ur site... great job dude....!

a question .. wat abt the income tax formalities in india..? has anyone asked this bfore...? i am actually confused abt this...? will it people hav an eye on us?

Rakesh said...

@ Anonymous

The earnings you make from Adsense is taxable in India. If you are a part time blogger (as the case with most of us is), you can show this income under the "Income from other sources" head.

However, if you are a full time professional blogger, you can show the income under the "Income from Business or Profession" head. The good thing with the second options is that you can get deductions on all expenses incured in earning this income.

Hope that clears the dust!

allwyn said...

hey u nowhere mentioned clicks in the answer so does it mean tht if one has 3000 visitors/day and no clicks then too these calculations will work?

Rakesh said...

@ Author,

I have used CTR (click thru rate) in every calculation. CTR is synonymous to clicks.

Read more on CTR here and how to increase your CTR here.

Say, you have 500 visitors and 20 of them clicks. Then, your CTR is (20/500) * 100

ie; 4%

CTR is an integral part of these calculations and these wouldn't work otherwise.

Hope that answers your question.

Anonymous said...

* tell me wht if no1 clicks even when i have 3000 visitors daily so how much can i make in a day ..(just assume this situation)....thnks!

* and buddy when i view ur site on IE d ads are not visible only but in mozilla its fine.

Rakesh said...

@ Allwyn

If no one clicks, the revenue would be very low, no where near this! You should simply get those clicks [without violating ToS] to earn something good!

In this case Google may serve you the CPM based ads. But then, that won't pay you anywhere near the clicks.

And thanks for pointing out the bug with ads on IE. I had a look at it and found it ok on my end. Does anyone else see this problem? Anyways, thanks again...

Anonymous said...

and wht do u feel d odds r tht ppl click on these ads ...i mean i noe they do but can der be any way to predict d clicks on per day or per so many people basis ?

Rakesh said...

@ Allwyn

CTR (and thereby the number of clicks) can significantly vary from site to site and vertical to vertical.

A CTR of 1% may be considered as good enough for a huge site while for a smaller site, it would be way lower than the usual trend.

I suggest you this article on what CTR is good?

Anonymous said...

interesting post.. i am currently earning rs 5 lakhs a month from google adsense.. dedicated work and patience is the key to sucess!! good luck to all

Yasir said...

Rakesh
This is my first visit to your blog and you don't belive I have almost 5 tabs opened in my browser, every tab with a different article at your blog and I am reading all posts one by one. Very great work by you. I really really appriciate it. I have recently got a adsense account and just started working on it but it is quite difficult for me to earn something. I am looking for some guidence.

Rakesh said...

@ Yasir - Thank you. Glad that you found it useful.