Adsense and Arbitrage 101 Adsense and Arbitrage covers a wide range of topics, strategies, and online philosphies. There are many angles to making money online utilizing these strategies and we will cover most of them in these lessons. If you are here visiting or a Free member, you obviously will only have access to beginning information that will give you a background of the topics, and open your eyes further than they already are. The 101 series is geared just for that. The 101 series as you probably have already seen, is meant to expand your mind so that you realize the unlimited opportunities to make money on hte internet. Let's start by defining the two terms. Adsense is a phenomenal idea hatched by google. Google is a giant in the internet world, if you did not know. They are what I would call Masters of the Universe Ha Ha.. Google offers some unique advertising opportunities. If you have been on the internet for any length of time, you have probably heard the terminology adwords and adsense. Now, you may not know what they are, but you certainly have heard of them, unless you have been in a cave in the anartica for the last 15 years. We will first talk about adwords.  If you have ever done a google search like we have done below. In the google toolbar, we entered "Internet Marketing". Google then searched it's massive databases of relevant data and returned websites that are fine tuned to relate to the keywords "Internet Marketing". As you can see, Google returned 83,400,000 listings related to "Internet Marketing". Of the listings that were returned, some of them show up because they earned positioning based on relevant content,  time on the web, page rank, number of links from authority sites, and a host of other variables that Google calculates. On the other hand, some of the listings show up, because the owner of the website paid a price to do so. In this instance, the three top ads, highlighted in yellow, and all the ads down the right hand side of the page are all paid advertising. This is accomplished with a tool that Google calls adwords.  A website owner opens a Google adwords account and bids from 10 cents all the way to $100.00 per click. That is if they when a bid for say $2.50 a click, everytime someone clicks on their ad, they get charged $2.50, whether or not that client buys once they get to the site. If the searcher  clicks on an ad, the website owner pays google for that visitor.  So many advertisers are bidding on these different keywords. Where their ad is placed on the search return is based, on their top bid, the relevancy of the ad, the click through rate and again an assortment of other variables make up Google's adword bidding algorythm. So that is what adwords are.... The what is adsense. Adsense is similar but allows website owners to get paid by placing adwords ads of related vendors on their websites, and getting paid when a visitor to their website clicks on an ad. So when a user sets up his adwords account, he can specify whether he wants his ads, to show up only on goole searchs, be displayed on the advertising network of related websites, and he can even specify what sites he wants to be on. This gives the vendor who is paying for his advertising a lot of flexibility and the ability to target his niche market. Why would a website owner want to put ads on his site, and give his vistors to a competitor.  Well, that is a good question.  There are numerous reasons which we will not go into those right now. The one reason I will state at this time, is because the owner of the site gets paid everytime a visitor clicks on an adwords. The process of the website owner who places the ads on his site for Google, is called adsense. So the advertiser pays google lets say $1.00 for every click, Google then  pays you the website owner 35 cents every time someone clicks on the adsence ad on your website. Thus an advertising network is formed and everybody profits. Below is an example of adsense ads. You have seen them before, you probably just did not realize what they were. Adsense ads will always have a title that says "Ads by Google". The site above which is www.GranpaKnowsAll.com is a series of websites I have branded around Grandpa. A knowledgeable, wise old man. LOL. Thats me. The site above is what considered a adsense content site. It is a site that is built for one purpose and one purpose only. That is,  to become an authority site by providing pages and pages of  quality content on a subject. The purpose of creating such a site is to generate income when people click on the adsense ads, and make even more money when they clcik on affiliate links which take them to other websites where we make a commission if they buy, or they may click on a link that takes them to a lead captue page and that lead is then sold to an end buyer. www.GrandpaKnowall.com contains about 1500 pages and presntly covers 5 main topics; Finance Travel Tips Car Tips Computer Tips Shopping Tips The site is a work in process, and will be an immese knowlege base at some point in the future. The cool part is that most of the pages were generated by automatic softwate. These arre the types of things you will learn here at All About Internet Marketing. The above content rich site is called by many name but what it boils down to is that it is geared towards a niche, and it's purpose is to become an authority sites,  with each of it's pages optimized for a differnet keyword. There is nothing new about this concept and process. Targeting niche markets on the internet is a basic concept and is part of any startup Internet marketers repetroire. As an individual aiming to build an online internet business, you have no other better strategy that to market to very specifc and targeted markets. This need to go "niche" is relative to our cluttered and hectic lives. With our busy schedules, we rely on information properly managed to guide us inour endeavors of life. In todays marketplace, no one has the time or the opportunity to be an expert on more than a few topics.  To stay on top of things, we are mandated to look for experts to guid us through the maze of life. This fact , used ot only apply to specialized fields such as medicine, law, and the sciences., but today, even topics as narrow and obscure as 18th century candle making has an expert and that expert will be in demand by the people needing knowledge on that subject. This demand for experts is virutally unlimited. It was this rush for expertise in the last decade that fueled the internet gold rush as everyone and their brother started building content sites. In the past, many of these sites were compiled with less than quality material, duplication, and utter nonsense but as time progressed the garbage started falling to the wayside.