How to Estimate Website Earnings?
Estimating website revenue involves understanding two main income streams: Display Advertising (like Google AdSense) and Affiliate Marketing.
1. AdSense Revenue Calculation
AdSense revenue depends on three key factors:
- Pageviews: The number of times your pages are viewed.
- CTR (Click-Through Rate): The percentage of visitors who click on ads. Average is around 1-2%.
- CPC (Cost Per Click): The amount you earn per click. This varies by niche and country (e.g., Finance has high CPC, Entertainment has low).
AdSense Earnings = (Pageviews × CTR%) × CPC2. Affiliate Revenue Calculation
Affiliate marketing earnings depend on how well you convert visitors into buyers.
- Conversion Rate: The percentage of visitors who make a purchase through your link. Average is 0.5% - 3%.
- Commission: The amount you earn per sale.
Affiliate Earnings = (Pageviews × Conversion Rate%) × CommissionFactors Affecting Earnings
- Niche: High-paying niches like Finance, Tech, and Health earn more.
- Traffic Source: Organic traffic (Search Engines) usually converts better than social media traffic.
- Geographic Location: Traffic from Tier-1 countries (USA, UK, Canada) pays significantly more.