AdSense Revenue Business Model

What do you think about this business model to generate a lot of traffic and CTR?

Word 'Insurance' received, according to Google AdWords, nineteen thousands clicks per day for a minimum price of click $0.05. Hence, for $950/day a website can receive 19K and more unique visitors per day.

According to http://www.keyword-list.com/ the average price for word "Insurance" was $9.54. If a Google pays you a half of this price to you as an advertizer, you can earn on the difference between what you spend and what you earn + paying taxes.

What do you think? Is it doable model?

 

It's doable but I think it depends on your CTR.

Also, those keyword lists aren't reliable in my opinion.

But give it a try and let us know how it worked for you.

 

Nice idea, just interested as to how you plan on ranking for the keyword "insurance"?

 

It obvisouly isn't going to work. AdWords traffic prediction isn't even close to real value.

The are three pages of ads for that KW. So your $0.05 will never get anything.

If it would work Google would REALLY be eating itself. You'll have to add ranking in the mix. If it would work like that 1000s would have been doing it already.

 

I agree that Google traffic prediction tool is not quite reliable. However, it proved to work more accurate comparing to Overture and Digital Point. Also, if I plan to show ads on search content network, there is a definite possibility to have 19K visitors per day for $0.05/click

 

I don't know about Insurance, but that site that quote that price has some absurd prices listed. I have some sites that rank in the google ton ten for some of the listed words and it doesn't pay but a fraction of what they are showing. I'm sure Insurance is a high paying keyword, but you would have to be an authority site to get top pricing and I'll bet the average click isn't anywhere close to what they are showing. I've found those type of lists to very inaccurate on a lot of words.

That being said, the "model" isn't anything new and can certainly net you a profit if managed correctly. If your conversion rate is 1% - 10%, at only 5 cents, you could be "paying" .50 to $5.00 for every click you get. I've found that 5 cent traffic tends to have a much lower click rate than natural traffic.

You can give it a try with a smaller test and see if the numbers work out. If you spend $950 a day, you are going to have over $30,000 invested before you see a cent from google.

 

Just a suggestion:

you buy traffic for keyword XXX (not popular, low CPC), you optimize your site for keyword YYY (very popular, high CPC) within the same theme.

then it might work, still depending on your CTR ofcourse

example: buy "route 66" ; get Adsense to show "Motor Insurance" or "Car insurance" ads. Content: write about the dangers of motorcycling

 

and to add to mjewels comment: start out with a $5 budget. if you get $6 revenue from google, increase budget by small steps.

 

$6 revenue for $5 budget is not good. It should return at least $15. Otherwise, the model is not attractive.

 

erm?

well if 6 for 5 works , and $6000 for $5000 works .....

 

Keep in mind that you still have to pay taxes...
...at least 25%

 

I'd be happy to pay $250 taxes daily...

 

Plus with all the traffic you'll be getting you can surely use it for something else (like promote another site, which in turn might give another $xxx)

 

Don't be naive. With $6000 daily income, you will pay $1500+ taxes, not $250.

 

No, you can take out your business expenses, so the $5000 you spent doesn't count.

 

Hmmm... I've been in business for 3 years and didn't take out such expenses, because I couldn't prove that such. Enlighten me

 

Depends on the expense but if you spend 5K promoting your site via Adwords and make 6K from Adsense then your profit is 1K so you should only pay tax on that. Keep receipts for everything that could be considered a business expense.

 

You are taxed on your net profit, not gross receipts...at least that's how it works in the US. Just document your expenses and itemize them on your return. I think its IRS schedule C for "small business reporting"

 

You're joking right?

You have credit card receipts for your purchases do you not? Those would be proof of your expenses.

I write off tens of thousands of dollars every year, that includes part of my mortgage, my heating and hydro bills, adwords, monies paid to contractors for websites and the such, hosting, computer equipment, books, etc...

If you've been in business for three years and have never had a professional do your taxes then you're doing it wrong.

 

You're obviously the naive one here.