Recently, I posted my “How bloggers make money MindMap” on Google+. I’ve had a few people ask for clarification around the Advertising section, and what all the options there mean. Here’s a summary:
1. Ad networks
These are services like AdSense and Chitika but also smaller or more local ones like NuffNang (which operates out of Australia and Asia). They can probably fit in some of the other categories as well, as they use different models to deliver their ads.
2. Cost Per Impression (CMP)
This is where you sell space for an ad and get paid based upon how many times it loads. Usually you get paid per 1000 impressions of the ad. The rate varies a lot, depending upon topic. There are lots of very low, “remnant” ad networks out there that pay you a pittance per impression, but if you have a higher value niche you can get better money. I’ve been paid up to $40 per 1000 impressions.
3. Cost Per Acquisition (CPA)
These ads pay out only when someone takes some kind of action after clicking the ad. The action might be a sale but could also be them signing up for a service, leaving an email address, etc.
4. Cost Per Click (CPC)
This is what AdSense used to be: every time someone clicked your ad, you’d get a certain amount. Now AdSense do a combination of CPC and CPM ads—they mix them in.
5. Sponsorships
This is what I do on ProBlogger. I sell ad spots on a month-by-month basis to sponsors for a fixed amount per month.
6. Text links
When you sell a text link on your site, the person buying the link is usually doing it for search engine ranking purposes. As a result, Google frowns on these and you could be risking your own search rankings by doing it. I don’t do this, as I see it as a little too risky, but some bloggers still do. Proceed with caution.
7. Pay per post
Also known as sponsored posts...
