What is AdSense?

Google's AdSense program provides you with an opportunity to make money by placing ads on the pages of your website. Google reviews the ads of thousands of advertisers, and then selects the best ads to display next to your content. You make money when your website visitors click on the ads.

How Does AdSense Work?

The revenue for AdSense comes from Google's AdWords program. AdWords provides business owners with a cost effective campaign for driving targeted traffic to their product/service website. Business owners that participate in the Adwords program place bids for keywords. The more they pay, the more effective the ads will be. When visitors click on your ads, Google shares a portion of the AdWords revenue with you. The more Google makes, the more you make.

How Much Can You Earn with AdSense?

Many people produce a full-time income with websites supported by AdSense ads. Some top earners like Joel Comm make a reported income of $24,000 per month in AdSense revenue. Your potential is only limited by your creativity and your passion for success.

What Will I Have to Do to Earn $40,000 a Year in Passive Income?

Step 1 - Begin with a plan. The components of your plan should include the identification of your target market, your solution (product/service) and your traffic (how you will get people to your website).

Step 2 - Build a website. Learn as much as you can about effective AdSense ad placement before your commit to a design. It will make all the difference.

Step 3 - Add content. Try to add new content everyday. Text-based content that shows your expertise is great. Better yet, try to find ways to include freebies - something worth having that they can print or download from their computer.

Step 4 - Test ad placement. Every website is different, so it doesn't hurt to double check the effectiveness of your ads. You can monitor the click-though-rates (CTR) with AdSense channels. Changing the position of your ads may double or triple your income.

Step 5 - Market your website. Do something everyday that will let people know that you are out there, and you have something valuable to offer. In the world of websites, this means building in-bound links. The more links you have pointing at your website, the more points of entry people have to find you.

With a successful plan and a strong determination to build your business you can make your dream a reality. It may take few years to build the kind of traffic you will need to replace your present income, but it can happen. Just commit to succeed.