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Source of Google Adsense Income

Beginners ask a common question, “How and why would Google Adsense pay me? From where do they get the money?” Before describing the whole process I want to give an example with which you are familiar.
When you watch a TV program, you must notice advertisement. If you watch a 60 min TV program, there may be 15 min commercial break. You can see different product’s advertisement. It’s for the popularity of that product. TV channels show that advertisement, because those companies give them money to show ads. Adsense is similar type of program.

Adsense provide ads to publisher/Adsense users like you and me. But, who gave those ads to Google? AdWords is Google’s another program which is the main source of revenue. It allows advertisers to advertise their website, blogs or any other web properties and reach new customers and grow their business. These advertisements appear on relevant Google search results pages and Adsense publisher network sites. AdWords charges advertiser when someone clicks an ad. Advertiser have to create an account, insert their advertisement, pick the maximum amount you are willing to pay per click on your ad and then submit their credit card. Their advertisement will then go live once the credit card is approved. Every time someone clicks on the ad, Google bills their account. Every couple of weeks or when bill reaches a certain amount, Google will actually charge their credit card. So, advertisers can’t cheat and they must pay money.

Adsense users like us use those ads on our sites/blogs. When someone clicks on one of the ads on our site, we get a percentage of the bid price Google is charging that advertiser