This is a tried and relatively true formula that can be used to determine the profit potential of a keyword or keyword phrase. All this information is available for free on Google by using their Keyword Tool.
Number of searches in a month times the average cost per click equals the monthly income potential to Google for that keyword or phrase.
To calculate your income potential if ranked number one in the search results, multiply the above result times 40 percent of the total monthly traffic(your potential if number one) times 25 percent (your percent of the Google income) times 5 percent (the experiential conversion rate of people who arrive at your site and actually click on an ad).
Here is an example of the actual formula in numbers:
1000 searches a month times $4.00 cost per click equals $4000.00
40 percent of the traffic income equals $1600.00 traffic to your site
25 percent commission from Google equals $400.00
5 percent of readers click on an advertisement equals $20.00 a month in income
$20 does not seem like much but look more closely. This $20 equals $240 a year.
This is for one keyword or phrase. Your articles can contain dozens more.
Your website can draw more traffic if many keyword rich articles are published.
Many keyword phrases pay more than the $4 in the above example, commonly much more in a competitive hot niche.
Experience with the right keywords is $1000 or more per year per blog site. Having several expert blog sites is the key to a larger income.
Originally posted 2011-05-10 11:42:00. Republished by Blog Post Promoter
Tags: AdSense Formula