While browsing “DIGG” this morning, I found an interesting experiment by Max Pastukhov exploring how “MFA” websites (Made For AdSense) buy pay per click ads in Google, and resell those clicks through Google’s AdSense program.
Essentially, Internet entrepreneurs build simple websites targeting a niche like the insurance industry. The site has no content, it simply incorporates Google’s AdSense program which is the basis for content-based pay per click advertisements on Google. These entrepreneurs then go to Google, and buy “clicks” through Google AdWords that bring people to their website which in turn sends traffic back through the Google AdWords program via Google AdSense.
This may sounds complicated if you’re not familiar with Google AdWords, but needless to say, these entrepreneurs have positioned themselves as middlemen. Call them resellers, or call them arbitrageurs, they are buying traffic from Google and selling that traffic back to Google’s advertisers at a profit.
According to Max, “80% of ads on insurance are MFA (Made for AdSense)” based on a surveying of 40 million search phrases.
This is what they do (and how long it takes them to do what they do):
1. Find an expensive and popular keyword (there are numerous free lists of keywords online and you can use Google AdWords Keyword Tool in order to estimate keyword popularity and price). It took us 1 minute.
2. Register a junk domain like “top4websites.com” or “insurancetop4.com”. We haven’t ordered any domain specifically for this purpose, but used one of our experimental domains (totally unrelated to the main theme of MFA web site).
3. Extract search results from Google or any other search engine. It took us 5 minutes.
4. Create HTML page with these search results. It took us 7 minutes.
5. Insert Google AdSense code in the way that search results aren’t visible without scrolling. It took us 10 minutes.
6. Upload html file to your web site. It took us 2 minutes.
7. Create a new Google AdWords campaign for this keyword by copying any other MFA campaign. It took us 10 minutes.
8. Wait for 15 minutes until you will see first clicks from Google AdWords, wait for another 15 minutes until you will see new clicks on Google AdSense.
According to Max’s experiment, an entrepreneur who builds 333 of these websites will earn $10,000/month in commissions. Granted, although this experiment has a sample size of 1, I think it’s interesting to gain insight into the factors that drive Google AdSense results (either for the better, or for the worst, depending on your perspective).