Google’s AdSense program lets you sell advertising space for other people’s ads on your website and not just any ads that Google chooses, but ads that are relevant to your site’s content pages. The service is free, and you earn money every time someone clicks on an ad.
AdSense lets you put text, image or video ads on your website. But where do the ads come from? They come from another Google’s program named AdWords which is if we put it simply, a bidding tool for keywords. Companies who want to advertise with Google, bid for keywords they want to be listed under. So the outcome is that different keywords gives you different CPC (Click Per Cost). The cost per click would be anything between 5 cents to $20 a click. The statistics page in the Google AdSense site provides information on the number of impressions, clicks and payout.
Google has started referral system wherein a person having a Google AdSense account can put a banner and if a person clicks and joins Google AdSense and after the publisher earns his first $100 (within 90 days), the referrer would be paid $100 for the referral.
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