We’re back again with the It’s Not Witchcraft Series! Here, we fight that natural Ghanaian urge to call mind-boggling technology witchcraft. Although it can seem like voodoo magic sometimes. Instead, we explain how the technology works in a way that doesn’t require a science degree to understand.
Today, we are going to look at how some services allow people to earn people money online. Specifically, we’re going to look at how websites earn money. How exactly do clicks translate into cash?
You Guessed It! Ads
The most obvious source of income for websites is ad revenue. When you visit websites, you’ll usually find ads scattered their across their web pages. The way that ads on websites work is that as you get traffic for your website (as people visit the site), some of those people on the website will click on the ads. When they do, you make a little bit of cash for every click.
You know Google has a service for everything. So yes, Google has a service for ads called AdSense. And this service personalizes the ads that each person on your website sees. Basically, each ad is tailored to the person who sees it.
The trouble with ads as a source of revenue for a website is that you need a huge amount of visitors before you can earn good money from your website. You might need—and here’s just an estimate—about 50 million visitors over the course of a month in order to earn good ad money. That is a lot of traffic.
Websites Also Make Money Through Sponsorships
Next, websites also make money through sponsorships. Sponsorships happen when the owners of a website connect with businesses, in order to market products and services for them.
This usually means that a company will pay to be able to run an ad to the people on a websites mailing list. Making money from sponsorships requires laying a lot of ground work. You need to be able to pitch your influence to your potential sponsor.
Your audience size, the demographics of your readers and other factors determine how much you will be looking to make from sponsorships.
Some Websites Sell Physical Products
So here, you want to think along the lines of Amazon and Jumia. Selling through a website does create some problems though. For instance, you have to figure out the logistics for how products actually reach customers.
You have to market your website as well. And then to top it all off, there’s the little issue of making a product that is good enough and has enough appeal to make people buy.
Finally, Websites Also Make Money Through Affiliates
You might not have known what it was called, but you’re probably familiar with affiliate ads. These ads appear more as organic content. For example, you read something titled “My Favourite Sneakers To Wear.” And then at the end of such an article, there might be a link to where you can get a pair of those sneakers.
Every affiliate of a business usually gets a unique link for that business’ page. That’s how businesses are able to keep track of which affiliate made a successful referral.
For affiliate links, every time that a purchase is made, the owner of the link that was used gets a commission on the purchase.
Websites can make money in a variety of ways. However, there is one thing that is always a necessity, and that’s traffic.
Source: Growth Lab