Last week I received an email from one of the readers who asked my advice. He has a dilemma that he wants to share with me. He read so many times about people who are doing millions online. They all mentioned Google AdSense and “big money” in one sentence. His question was very simple: Is it true that people are actually doing millions of dollars online?

He asked my advice whether to put the effort and to develop his own Google AdSense websites network. He wants also to make his one million dollars online. “What are my chances…?” he asked.

Why am I bringing his story in my SEO blog?

Sometimes people choose the wrong reason to initiate their own website. One of those wrong starting point is Google AdSense. My advice is simple: Don’t ever think to launch a website just because you think you can earn few bucks from Google AdSense. In most of the time you will end up with a website that gains a total income of $1000 in a few years. You need to find a good reason to launch a website: a valuable service, a good knowledge to share with others or a good product to sell online.

The internet market is the largest market ever, almost with no boundaries and no limitations. People are truly making millions online, but not with Google AdSense. Most of them are selling products or service. The number of webmasters who earns the big money from Google AdSense is very low comparing to the total number of webmasters who integrated it in their website.

Allow me to base my argument. You don’t need a master degree in order to understand the following explanation. All you need is a good common sense and internet connection ;).

Let’s take a look at Google’s last financial reports. These reports can be found free of charge at Google website (http://investor.google.com/releases/2006Q4.html). Google is a public company. Therefore Google is obligate to publish financial reports quarterly.

In the report you will find a section describing the TAC - Traffic Acquisition Costs.

It’s the portion of revenues shared with Google’s partners. Google saying that she paid total of $916,000,000 to her AdSense partners during that quarter.

How much a single website is earning? It’s very hard to say, mainly because Google TOS is forbid webmasters to share their income with others. In an article that was published at the New York Times we found a clue for this question. It was mentioned there that Google pay ~$10,000 per month to the webmaster of Digital Point (DP), one of the most busy forums on the web. Meaning Google is paying DP ~$30,000 quarterly.

DP website is a busy website, loaded with traffic. How many busy websites like DP on the web? 1,000, 10,000?

Internet analysts estimates that Google has ~250,000 AdSense partners. I played a bit with the numbers. I tried to demonstrate that if I will assume that 7,500 websites earn like DP and the rest much below, you will be able to see that most of the webmasters barely make $500 per month.

At LifeAfterAdsense website you will find a survey that was made among large number of webmasters. They have been asked about the amount of money they earn per month from Google AdSense. The results are pretty much the same as my assumptions.

Don’t get me wrong. I don’t think AdSense is a bad business model to rely on. It definitely can be a very profitable channel. What I am saying is simple; do not launch a website just because you think you can earn the big money from Google AdSense. Don’t spend hours and days doing SEO for a website that has nothing to offer but Ads. In the long run it won’t be a profitable website. In order to earn lots of money from Google AdSense you need to have lots of traffic. Continually traffic will only exist for websites that have something valuable to offer.

I hear many times people asking how they can get links to their website. The old simple way is to purchase an ad space on other websites. If you put behind the ROI (return over investment), though its one of the most expensive ways to get back links, it’s the most effective one. You get the golden link – one way link.

The most common FREE way is links exchange. The process is very simple: Two webmasters are deciding to exchange links. They both put a link to the other website, usually on a dedicated section on the website.

Webmasters learned the potential of link exchange very fast. Each link gave them another vote; more votes helped them to get a higher position at the SERP. Links farms started to spreads around the internet like flowers in the spring.

Google engineers did not seat on the bench while webmasters infecting their SERP. Webmasters started to gain profits from non qualified websites. As soon the webmasters noticed Google actions, they got panic. They were so in panic that some of them actually send emails to those links farms webmasters asking them to remove their website from their links page.

Webmasters now looked for niche websites to exchange links with.

Google enhance its algorithm and reduce the effectiveness of back to back links. Again…webmasters got into panic. They came with what so called three way links exchange. In that process two webmasters meet to exchange links. One of them owns at least more then one website. Let’s take an example: Suppose webmaster W1 own S1 & S2 websites. Webmaster W2 own S3 website. S1 links to S3 while S3 link to S2. This is a classical three ways links exchange.

What do think guys, doesn’t Google can easily recognize it?

Don’t fool yourself. The answer is simple: YES!

If you are Google, and you have the web spread on your table, you can run a simple algorithm that will look for patterns. Patterns are the easiest thing for a computer to find. No matter how time it will take to scan all the information, at the bottom line a pattern would be found. Unlike lexical analysis, patterns behavior is a pure mathematical issue.

So… shouldn’t we exchange links?

I wouldn’t say that. However, I wouldn’t pay much effort on it. There are better free ways to get links to your website. Later on I will show you some of those methods.

Today I would like to write about two important SEO terms: On page optimization and off page optimization.

On page optimization refer to the action that you need to take on your website pages. Many are not aware, but sometime a single change can improved you ranking in big time or alternatively can cause a serious fall to your ranking.

Off page optimization refers to the way other websites link to your website: What anchor text they are using, how many out links they have on their website etc.

Although you will find that most of your work will be around the off pages optimization, make sure to give the right attention to the on page optimization as well. Don’t get wrong, although the off page optimization considered as the easy part, it’s mostly because it is under the webmaster full control. You still have to keep track on your websites changes and make sure all of your pages are well optimized. Just be careful not to make your web pages too “perfect”. Make sure your web pages looks natural and not purely SEO oriented. My rule of thumb is simple: If the users like it the search engine will like it too.

There are lots of off page parameters that you need to track. Better to check them occasionally. Doing so will give you a good understating about your SEO efforts outcome. It will also give you a great way to predict your ranking position in the next “Google dance”.

Let me show you how I manage that kind of task effectively. I am using SEO Elite in order to get all the information about those who link to my website. All I have to do is to type the name of the domain and to choose the search engines that I would like to get the information from.

The outcome report and very detailed. I have all the domains that link to my website. I get each page and its page rank. SEO Elite summaries for me in a special section of the report how many links I have from each PR. For each back links I get to see the age of its website, its IP and whether the back link is still active. The last one is very important. SEO Elite not just get the information from the search engines SERP but also verified that it is still valid. As you can see, within few clicks I get detailed information that helps me to track after my SEO progress. Next I will show you how I get links to my website. How do I know which website has an added value for my SEO efforts.

Few days ago I demonstrated how we can use the “allinanchor” and “allintitle” Google operator. Let’s now have a look how “allinanchor” & “allintitle” operators can give us more powerful ways to track at the SEO progress of our website and to have a better understating about the niche market and its potential competitors

This time I will show you how I am using SEO Elite to get a detailed report for the “allinanchor” operator results. Please note the following process can be done also for the “allintitle” results. Using both of the reports together will give you the ability to get some interesting conclusions.

SEO Elite has several project types that every SEO guy can use. It doesnt matter if you are a newbie with SEO or an expert. At this time I will use project number 3: “Analyze AllInAnchor, AllInTitle or AllInText”. SEO Elite will generate a complete report for a given keywords. You can choose between AllInAnchor, AllInTitle or AllInText operators for every keywords you like. I would like to generate a “allinanchor” report for the “SEO Tools” as my keywords.

Let’s take a look at the SEO Elite report. The report contains one section. This section is divides into two windows. The left window is natural results from Google for the search phrase: SEO Tools. The right window contains the results using the search engine function allinanchor, i.e., allinachor: SEO Tools. On each row, next to each website you will find its page rank (PR).

SEO Elite help make things easily visible. If you will click the PR column’s row on the right side the website will be highlighted. On the left side window you see where the site ranks for the natural search.

So what is the big deal !?

Well…. Taking a close look on the report can tell us the following:

If a website has a high ranking in the right window (contains the results using the search engine function allinanchor), we can assume that this website has lots of back links using that anchor. Most likely that this website is been optimized for this keywords. If at the same time the website also ranked high in the left side (natural results), it will be wise to do a full research about this website SEO affords. Later I will explain why.

However, if at the same time the website doesn’t appear at all in the left side, we can assume that the webmaster is doing some SEO for this keywords but yet did not to take a good position in the natural results. You should diffidently consider that kind of website to your direct active competitor.

In some cases you will find on the right side websites that has lots of back links but still do not show on the natural results. This could be because of the SandBox affect that I mentioned in a previous article.

It’s a good example for a simple task that can be done in an effective way, this time using the SEO Elite software. Generating this report on a regular basis can give you a good estimation about the trends in the SERP in your niche market. More than that, it’s a great way to try to predict the changes in the natural results before they actually take place.

Ok guys…. As you can see SEO Tools website is been listed by Google.

It can’t be found, yet, not by Yahoo nor MSN. When you will start your way with SEO you will find that you are been required to repeatedly do some of the SEO tasks on a daily basis. Some of those tasks can take lots of time. I don’t know about you but my time is not cheap. Therefore I am doing the best not to do things manually where there is a reasonable tool for my needs.

You will find lots of SEO softwares in the market. Remember, those software are just tools that helps to enhance your work. None of those softwares (as much that I can tell) can actually guarantee any ranking. You should know which of the SEO tasks you need help with and then look for the right software that best meet your needs.

During my day to day actions I am using more then one software. Although there is a lot of overlap between them, I still use both of them. Some of the reasons are historical. It’s also a matter of old habits. I would recommend to all of you to try different type of SEO software and then to choose the one that you most like. At the bottom line you will need at least one good SEO software, or you will find yourself spending lots of time repeating some tasks that could be easily done more effectively.

I will start with two SEO softwares that I like the most: SEO Elite & Web CEO. Both of them have their pros and cons (this is why I am using them both ;) ). Both of them have a trial version that you can download and try.

I am not going to write a review about none of these softwares. However, I do going to show you how I am using those softwares in my day to day SEO actions, optimizing this website.

In the next article I will start to show you how to benefit from those SEO Tools, I will show you how to use them for some of the task that we did so far “manually”. I will also reveal the first report about SEO Tools website as it can be produced using these SEO tools.

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