Measuring Your Website Worth Based on Visitors and CPC

Here’s a formula based on what I called the “Spending Model” as opposed to the popular “Earning Model”.

If the value of your website is a function of unique visitors and how much PPC advertisers are paying for each visitor then here’s how you can calculate the worth of your niche website using this formula:

Number unique visitors per month x 12 x average CPC x 3 = $$$

For example, if your site attracted 10,000 unique visitors per month, the average CPC for the niche is 10 cents then your site is worth…

10,000 x 12 x $0.10 x 3 = $36,000

Measuring Your Website Worth Based on AdSense Revenue

Another way to measure how much your site is worth is to use the Earning Model. You simply multiply your past 12 months earning of your website by a factor of 3.

For example, if your AdSense site earned $200 per month then it is worth…

$200 x 12 x 3 = $7,200

As the website owner, you will take whichever is higher to price your website. On the other hand, if you are the buyer then you will use the lower one.

So What is the Fair Market Value of My Website

I would think the fair market value lies between the prices calculated by each of the two methods above.

So What Do You Need To Do To Benefit from Smart Pricing?

Here’s an interesting article by Jonathan Leger – a very informative piece of well researched report.

Smart Pricing has triggered a huge amount of speculation on the part of Adsense publishers. Google is notorious for having very little to say about the way its algorithms work. Their thinking is that the less people know about it, the less chance they are going to be able to cheat the system.

This lack of communication has caused all kinds of speculation about how Smart Pricing works, what it looks for, etc. Nobody knows exactly how it works, but I’ve got hundreds of websites, and track everything. I’ve learned a few things about what Smart Pricing seems to like and what it seems to not like.

What We Know For Sure

The one piece of information that Google has given out about Smart Pricing is that it takes into account how well the visitors from your site who click on the ads convert into customers for the advertiser.

In a perfect system this would be all of the information that Google used. If your clicks converted well, you would be well paid. If they converted badly, you would be paid less per click.

However, AdWords advertisers are not required to reveal their conversion data to Google. Google gives them that ability, but a lot of advertisers do not use it, so Google has to try and “guess” at whether or not your clicks are converting for those advertisers.

What Smart Pricing Seems to Like

Smart pricing definitely loves themed websites. If your websites is devoted to Widgets, and only Widgets, Smart Pricing tends to reward your clicks better. The more narrow your targetting, the better.

However, Smart Pricing does not seem to penalize sites that have a group of related topics. So, for example, if your site is themed around Widgets but has content related to Red Widgets, Blue Widgets, Green Widgets, Building Widgets and Used Widgets, Smart Pricing seems to favor that.

If you have themed topics, it’s appears to be best to seperate them into subdomains or subdirectories. So don’t put your articles on Red and Green widgets where they can be found like so:

http://www.mywidgets.com/redwidgets.html

http://www.mywidgets.com/greenwidgets.html

Put them like this:

http://www.mywidgets.com/redwidgets/

http://www.mywidgets.com/greenwidgets/

Or better still:

http://redwidgets.mywidgets.com/

http://greenwidgets.mywidgets.com/

In line with theming, having a domain name with your keywords in it also appears to be favored by Smart Pricing. So the “mywidgets.com” example used above is a good one. Having a domain like “www.someunrelatedsite.com” seems to draw penalties from Smart Pricing.

So make your domain name match your theme, and split up your content into related topics in different subdirectories or subdomains.

What Smart Pricing Seems To Hate
The opposite of what Smart Pricing likes, it hates. Having too many topics on the same site really seems to draw penalties.

Having a domain name that has nothing to do with the topic of your site seems to draw penalties.

And, as discussed before, if your site does not convert well, you’ll get hit with Smart Pricing penalties. You can avoid a bad conversion rate by only focusing on quality traffic to your site.

Get traffic from Search Engines and links from sites about topics related to yours. Avoid cheap traffic brokers like the plague! They send lousy traffic (most of which is fake “bot-generated” traffic anyway and won’t earn you a dime).

You might be tempted to try it out, but beware: Smart Pricing appears to calculate your “value” once a week or so. That means that if you goof, for the next week you’ll get lousy paying clicks. It’s best to get it right from the get-go and avoid those mistakes.

Is Smart Pricing Fair To Publishers?

That’s an interesting question that I’ve read debated a lot. Some say that it shouldn’t be up to the publisher to convert the traffic, it should be up to the vendor. And if the vendor’s site converts badly in general, the publisher will get penalized. Whether that’s true or not I don’t know– only Google knows.

Other’s say Smart Pricing was needed to help advertisers maintain a good ROI (return on investment). They say that “bad” traffic that doesn’t convert well should not cost as much as “good” traffic that does.

Regardless of what anybody thinks about it, or whether it works or not, Google has implemented Smart Pricing. So you’ve got to know how to work with it to maximize your earnings. Following the advice outlined above from the start will help you to keep your click values high.

When you make your living online, you realize the need for multiple streams of income.

One of the easiest and most lucrative ways to generate a secondary income, which also happens to be passive, is via Google’s Adsense program.

I’m sure you’ve read the claims of a few individuals generating five figure monthly incomes from Adsense. For many of you, I’m sure you are wondering why you aren’t making this same income yourself.

Well, wonder no more. If you follow my simple six step system, you will be well on your way to healthy Adsense profits within three months.

Are you ready? It’s now time to pay attention.

Step 1 – Preparation.

The key to making money with Adsense is all about numbers. BIG numbers!

Sure, there are a few people making serious money with less than ten sites, but these are the exception.

Your goal will be twenty-four sites in three months. That’s just TWO sites per week!

In order to accomplish this, I recommend one of the many available page generation tools available today. My personal recommendation is Content Desk. You can learn more about it in this in a special 8 page special report: http://www.topkeywordlists.com/downloads.php?a=dl&fid=9

Step 2 – Determine Your Markets.

In order to maximize Adsense income with only twenty-four sites, you must know which markets are paying well.

To break this down even further, you need to know which keywords within those markets are paying the most.

Don’t worry; you will never need to research this yourself. Check out this fantastic resource that provides research for 25 different markets to its members each week: http://www.topkeywordlists.com/?afID=1&adc=3

Step 3 – Register you domains.

Once you’ve identified and chosen your markets, you must register domains appropriate to those markets. For example, if your market is ‘Cabbage Patch Dolls’, a domain such as http://www.cabbage-patch-doll.com/ would be appropriate.

You can find great deals on domains at http://www.yourcheapdomains.com.

Step 4 – Create your site.

Using your favorite page generation software and keyword list, it’s time to develop your site. There are several key points to bear in mind when you develop these specifically for Adsense.

1. Format – Always use the large 336×280 large rectangle.
2. Border – Match the same color as your background.
3. Background color – Border – Match the same color as your background.
4. Link = “0000CC”
5. Color_url = “999999″
6. Color_text = “333333″
7. Position – Far left or center and just above the page fold (Top 25% of site)

Make sure you are hosting with a quality host. I recommend http://www.nicheminisitehosting.com.

Step 5 – Verify and track your site

Visit your site and make sure all links work and that the sites appear to your satisfaction. You should also check out the ads Google is displaying. Are they targeted to your primary high paying keyword? If not, recreate your site using your high paying keyword in a higher density throughout your site. Using Content Desk, you will know the exact keyword density of each article on every page.

Make sure you track your Adsense format, position, and traffic with a tracking system specifically designed for Adsense. http://www.AdsenseTracker.com is the perfect tool for the job. Once you know your stats, you can adjust for maximum clickthroughs and higher revenues.

Step 6 – Get your site listed in the search engines.

This is simple… no tricks involved. Simply rent links to your site. A PR7 or PR8 link rented from http://www.text-link-ads.com will do the trick.

While I’ve simplified the process here, you are now armed with enough information and resources to make some serious money with Adsense.

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This article has been authored by Keith Baxter, the founder of http://www.topkeywordlists.com.
If you want to maximize your Adsense income and learn how to drive massive amounts of traffic to your website from the search engines, visit the site now. Only 203 spots are available at the special low introductory rate.
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Well, that was the feedback I got from one of friend who use http://singaporegoodfood.com instead of http://www.singaporegoodfood.com.

So using alternative ad is no longer an option but a must if you have a relatively new website and using not so competitive keywords.

So I use AffiliateSensor ads as alternative to my Adsense ads.

To use this service, you will need to do 2 things:

1. register for a free Clickbank account

2. register for a free AffiliateSensor account.

The ads format provides by AffiliateEdge is silimilar to those of Adsense and Adsonar. So you can simply select one of the standard formats, the category of ads e.g. recipes and build the scripts for the ads. Click the radio button “Show AdSense PSA-replacement code” and you will get an URL for use as alternate ads in Adsense. It looks something like this:

http://www.affiliatesensor.com/aspsa.php?id=2430

This is how the control panel looks like: