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Kaustubh Katdare
Kaustubh Katdare • Oct 27, 2015

Common Questions About Earning Money From Website Answered

An aspiring entrepreneur wants to start a website and has sent following questionnaire. I thought we'd discuss the questions here for the benefit of larger audience. Go through the answers and if you want more information, post them below.

1. Cost to start the website:
  • If we hire full time employees i.e. programmers and designer.
  • If we outsource the project to web development company.
  • According to you what is the best way to build this kind of website?
Answer: The cost of development totally depends on the scale at which you are planning to launch. In general, it's advisable to start small to keep all the costs low. The cost would also depend upon the 'kind' of website being planned.

A basic content based website can be started using free services or CMS like WordPress, Joomla, Drupal or using scripts that offer specific functionality. You can of course outsource all of it and get a basic website done for under Rs. 1 lakh (~$2k). That said, remember that all of this can even be done for free, if you know what tools to use.

2. What is CPC, CTR, CPM?

Answer: The CPC is 'cost per click'; which is the amount advertiser is willing to pay for a visitor clicking on the advertisement displayed on your website.

CTR : The 'Click Through Ratio'. It's the measure of how many clicks an advertisement gets and calculated as ( 'clicks' / 'impressions' ) x 100. Impressions is the count of how many times an advertisement is shown.

CPM: 'Cost Per 1000 Impressions'. One of the most popular way of making money is to charge the advertisers for every 1000 impressions an advertisement generates.

3. On what basis ad revenue is calculated: Number of visitors or Number of page views?

Answer: The revenue is influenced by multiple factors: count of visitors, pageviews, location of the visitor, actions taken by visitor etc. Typically, when using Adsense; number of clicks and number of pageviews matter.

4. What is the criterion to partner with Google AdSense?

Answer: Official Google Adsense page should provide all the details. Typically, you need to have your own website that complies with Google's content guidelines, you should be at least 18 years old, have a website active for more than 6 months etc. Read details on: Eligibility to participate in AdSense - AdSense Help

5. How to maximise ad revenue?

Answer: This is a vast topic. Focus on making your website popular and ad revenue will take care of itself.

6. How to increase website traffic?

Answer: Have something unique to offer to visitor that no one else offers. Make something people want to use and people will visit your website. Again, this is a huge topic to explore.


7. How to be on the top list on search engines?

Answer: Quick way is to buy advertisements on Google for specific keywords that you wish to rank for. Organic way is much difficult. You will have to start exploring the topic of SEO (Search Engine Optimization) to get your website rank at the top.

8. Maintenance cost of website.

Answer: You will either have to maintain the website yourself or get someone to do that for you. The question itself isn't very clear. Asking specific question about website maintenance would certainly help.

9. How much revenue can we expect for:
  • 1 Lakh visitors/page views per month
  • 4 Lakh visitors/page views per month
  • 10 Lakh visitors/page views per month
Answer: It's impossible to predict or even give a 'realistic' revenue figure. It all depends upon what your website offers. If you have primarily north American / European audience, you can expect to make several thousands of dollars every month. For Indian audience in a 'sports' niche; my wild guess with Adsense would be about $200 - $600 per month. Again, it's a wild guess.

I hope this answers your questions. Feel free to ask for clarification or additional questions below.

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