How Blogs Make Money
The most important question all professional bloggers will have, is how does a blog make money. The first thing most bloggers add to their blog is Google Adsense. There is a myth going around that they are the best way to monetize sites. Using adsense is OK, but relying totally on adsense alone is not the best way to monetize most blogs. If I were to rely on adsense only, then my revenue would be only a portion of what it is today. Adsense makes me less than 10% of my total income across all my websites, which is why my sites use many different types of ways to generate money. Plus, relying on Adsense alone is risky anyways because you can get banned for suspected click fraud.
Types of advertising for blogs to make money
Below are the types of advertising I have used personally, to maximize income on my blogs. I recommend using many different types at the same time because that is how you make the most money.
Pay Per click Networks - Pay per click networks automatically serve text or image ads. When a visitor clicks on the link you get paid. How much you get paid depends on the advertiser and the niche. Some keyword niches pay better than others. Some pay per click networks allow you to target the keywords manually, while others serve ads automatically targeted based on the text of each page (contextual ads). Google Adsense serves contextual ads and is the best of all the pay per click networks because it serves the most relevant ads and pays the highest per click on average.
Sponsored Posts When I first started blogging, I didn’t do any sponsored posts on purpose. I was afraid of it annoying my visitors, for a few extra bucks. Earning wise, it was the biggest mistake I ever made! Sponsored posts is by far the biggest earner for probably 99% of the bloggers! You might make a few bucks off adsense in one month, but you can earn that in a few minutes on just one sponsored post. And your readership won’t suffer (at least not that much) because you still have to integrate it into your usual non-sponsored content to stay in good standing in these networks.
Take a look at my Sponspored Post Network Reviews to see which ones I have had the best success with. If your blog has medium traffic and/or medium PR, you will have no problem making a few hundred a month from using one or more sponsored post networks at the same time, if you are motivated. You can still make money with a blog that has little traffic or PR, but it is much tougher.
Affiliate Ads I recommend first signing up to Shareasale to find affiliate programs, before any other affiliate network. Shareasale has a lot of good choices for affiliate merchants and they do the best job of providing a lot of tools, information, and security. A lot of the information they show, unlike the other networks, helps you seperate quality affiliates from the unreliable shady ones. A lot of the other networks keep really important information private from affiliates, such as program uptime history, compliance testing dates, auto-deposit, and EPC earning history. These are all very important to know and some affiliates don’t even do compliance testing. Shareasale gives us all that information and that is why I find them the best.
Direct advertising Some bloggers sell 125 X 125 banner ads or text links on their site themselves. Most advertisers pay better for a ad spot for a month than what you would earn from having your affiliate or adsense ad there, but it is up to you how to set the price for the ad spot. This idea of going it alone works best for high traffic sites with a good reputation or in unique niches with little competition. I wouldn’t bother with the hassle of trying to set up your site for selling ads to your visitors because you probably won’t get any offers anyways, unless you have a lot of traffic(tens of thousands).
Text link Brokers Instead of trying to sell text links off your site yourself, I recommend using a text link broker service like Text Link Ads and TNX. The text link brokers handle everything and have a large advertiser base already in their system, so it’s usually pretty easy to get a lot advertisers to find your site and buy some links. Text link ads are a great way to sneak in some extra income without adding much clutter to a site. The more link authority and traffic your sites have, the more you make selling links for SEO purposes.

May 17th, 2008
I dont think text links ads are good option.Pay per click ads are ok. Text link ads can seriously affect SEO.
May 17th, 2008
I strongly disagree. Text link ads are a great way to turn some of your low traffic sites making virtually nothing from pay per click ads, into a small revenue each month. If your site don’t got the traffic to make any money, better take advantage of Text Link Ads and make use of your pagerank at least.
June 19th, 2008
Text links Ads can be a good option when you start a new web or blog but you don’t abuse of it and don’t publicite that you are selling links.
July 6th, 2008
I kind of agree that text link ads just aren’t really worth it. I imagine that if the site is making less than ~$100 a month, then using the text link ads will at least make some money. But for any site that is making a decent amount, i don’t know if I would want to throw the wrench into my SEO for a short term gain
How much do you think it is possible to make with text link ads for a new site? $50-$100 / month?
July 7th, 2008
I get stable money flow from Adsense although it’s not alot. Thanks fro the alternatives options for me!
July 8th, 2008
@ Hosting A Poker Tournament
No you won’t make that kind of money on a new site unless its lucky enough through hard work to get a high pagerank. Text link ad revenue outpaces adsense though, thats for sure.
July 16th, 2008
How do you integrate pay per post reviews on your small traffic blogs, do you do one a day, one a week?
How do you personally do it. Let me know.
July 16th, 2008
Great post Paul. I never thought of a couple of those, thanks!
July 18th, 2008
Very interesting article. I’m from Russia!) Hellow from Moscow for you!
In my country text links ads are good option. I agree!
July 18th, 2008
Great post. Very good ideas and motivation
July 22nd, 2008
Wow you are the first to cover every single way a person could make money on a blog. Thanks.
July 23rd, 2008
i am trying only google adsense and one affliate program with little success so far.. may try the others you mentioned just now…thanks
July 30th, 2008
There’s some great tips in here - I’m only using Adsense myself, but I’ve been considering some of the other options you mention. I’ve just been trying the Kontera text link ads and so far in the first week I’ve made the dizzy sum of $0.02! I think that one depends on your content! Thanks, Dan.
August 1st, 2008
I only use adsense, though the payment is higher than ader PTC sites, it is stable and they really pay you, anywayz thanks for these alternatives.
August 1st, 2008
Text links ads are the best way to lose your PR. Just install the code and wait for the next update.
I lost my PR in my other blog this way.
August 2nd, 2008
Well PR is only important to link sellers anyways, so if your not selling links why are you so scared of getting penalized? Let me put it into perspective, sites that get PR penalized don’t drop in their SERP rankings and also many sites get PR penalized for no reason(they haven’t done any link selling). So you can sit around and obey the “Google Gods”, but if your PR gets zapped for some reason, even though you didn’t do any link selling, than you wasted all that time for nothing when you could have made money selling links.
August 11th, 2008
good article
August 28th, 2008
I am google adsense publisher…..but only create cent in a day, help….any idea to increase earning…? thanks
August 28th, 2008
great posting and nice source to create money online…, hai…do you have compare ppc in major searchengine like google, yahoo and msn? thanks
September 15th, 2008
I use all methods except, sponsored posts and text link ads for obvious reasons.
If I use text link generation service, that generates link on the fly while the web page is being rendered in visitor’s browser, there is possibility that the generated link is totally irrelevant from post topic or blog niche. This can annoy the reader who visits the link and may hurt the hard earned reputation of you and your blog.
If I sell text links via some broker, they clearly appear as paid links in the content. Normally, they give 5-6 links in a 70-100 words paragraph and ask to put at the bottom of post. Again not recommended by me.
Now comes sponsored post. My blog is on blogger platform. Once I did a sponsored post from payperpost, in 48 hours I lost my PR. I removed that post and in next update I managed to get it back.
Hey Paul, if possible, please include E-Mail followup of comments
September 27th, 2008
if u have quality content with good traffic and Pr then its very easy to earn bucks from the blog otherwise its bit difficult …
October 2nd, 2008
Hi
I don’t know i am to cynical, but it seems to me that most of the people that make money from blogging are those talking about making money from blogging.
Otherwise it is a good article
November 12th, 2008
The first thing most bloggers add to their blog is Google Adsense.
November 22nd, 2008
The problem with Paid Links and Sponsred posts is that you can easily make Google Gods angry and they’ll flag down your site.
I get majority of my traffic from Search Engines by targetting keywords and I don’t want to make google antsy by these approaches.
Beviga.