How to Make Money from Pay Per Click

1. Decide on an advertiser. Google Adsense is probably the most common method of earning money from pay per click but there are others through Yahoo as well as Chitka, Microsoft Ad Center, Kontera and Infolinks. Rates vary by provider. Ads are placed through a snippet of code on your webpage. The code uses the words on your page to display ads automatically. Ad selection and relation to those keywords vary by advertiser. The closer the ads are to the content of the webpage, the higher the clickthrough ratio.
2. Choose a niche that earns a reasonable amount per click. Go to Google Adsense Keyword Traffic Estimator tool. Search for keyword phrases that relate to your niche. You can find out what phrases have the higher pay rate. For example, 'dog food' pays about $3 per click, while 'get rid of credit card debt' pays double that and 'budget golf' pays less than $1. Many people on the Internet are searching for the solution to a problem such as getting rid of credit card debt, losing weight, quitting smoking and getting rid of acne. Profitable pay per click niches address those problems by providing content related to getting rid of the problem. When the visitor wants more information, the hope is they'll click on an ad.

3. Set up a blog or website using your keyword phrase as the domain of the site. If you don't want to get involved with your own hosted site, use a free blog such as blogger.com or sites that share revenue, such as Hubspot.com or Busika.com. Be warned that some sites only use Google Adsense, you won't have a choice of advertiser. Post to your blog or website using various keyword phrases as the title of the blog posts. Include the keyword phrase once in every paragraph of about 100 words.
4. Drive traffic to your blog or website. Target the traffic, so the visitors who come already have an interest in finding the solution to their problem. Visit and participate in forums and discussion boards with a link to your blog in your signature. Write articles related to your blog and post them online with a link to your blog. Someone reading the article will be enticed to visit your blog and then click on a link.