Let’s start with the obvious: buying advertising. We’ve already talked about
AdWords/AdSense arbitrage but exactly the same principle applies to buying
your traffic from other sources too.
For example, the minimum price for advertising at Overture is ten cents per
click and you must spend at least $20 each month. If you can see that the
ads being served on your site are generating less than ten cents per click
then you’re never going to make a profit.
Exactly the same is true of any other pay-per-click advertising campaign.
One of the advantages of following your AdSense stats is that you can
estimate how much the clicks on your ads are worth. That can tell you how
much you can afford to pay for clicks from other sites when you buy
advertising.
It might well pay to advertise, but before you buy make sure it pays a profit.
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