AdSense allows you to serve text-based Google AdWords on your web site or blog and receive a share of the pay-per-click payment.

What are Adwords?

Adwords are text only advertisements that Google sells to people who want to advertise their website on the Google search results page. Adwords appear at the top and right of a Google search results page.

Adwords ads are set up so they only appear when someone enters certain keywords into the Google search. For example if you had a website selling Gold Watches you would set up your Adword ad to appear when someone entered 'Gold Watch' into the search box.

When a user clicks on one of these ads they are taken to the advertisers website and the Google automatically receives a fee from the advertiser.

The cost to advertise depends on how competitive the keywords you have chosen to advertise on. If you want to appear at the top of the list to a very competitive keyword area the cost-per-click(CPC) price may be over 10$.

Back to AdSense.

Adsense is where these Adword ads are put on your Website. Which ads appear depends on what Google 'thinks' the webpage the ads are being displayed is about.

Therefore if your a webpage is about gold watches ads will be displayed for gold watches.

If it thinks the webpage is about cars it will display ads relating to cars.

To decide what your webpage is about Google will look at things on the webpage like headings, the density of keywords and also places importance of the file name of the page. So if you wanted the gold watches ads to appear on your page you would call the page gold-watches.html.

When a visitor to your site clicks on one of your ads you will get a percentage of the CPC (Cost per Click). Google keeps the percentage secret but it is generally thought to be around the 60% mark.

If that is 60% of a $10+ ad you can see how having Adsense on your website can become very profitable.

Paul Middleton is a successful Internet entrepreneur. He shares some of his secrets on his website where he shows how anyone can make money online. Included are details of how to make money with Google AdSense.