I read an interesting article by Martin Zwilling at Entrepreneur.com about making money on Facebook. I found it intriguing and thought I would share some of what I read.
In order to start making money using Facebook Ads, it helps to understand how online advertising really works.
I must confess, reading and learning this new way of marketing can be overwhelming with all the terminology and acronyms. Therefore, below is a simplified outline of some of the basic information about online advertising.
Hopefully, this will bring value to you and shorten your learning curve! Let’s get started!
1. A site owner gets paid when a visitor clicks on an ad.
This model, called pay per click (PPC), is the one most commonly offered to entrepreneurs. The goal is for your visitor to be redirected to the site or product being advertised.
2. Get paid every time an ad is displayed on your site.
With this model, advertisers pay for the number of times an ad is shown regardless of whether it is clicked on. Technically, this is called pay per view (PPV), pay per impression (PPI) or pay per mille (PPM), which is a thousand impressions.
3. Your visitor must take action on ad before payment.
With this variation, no payment comes to you until your visitor gets redirected to the ad site and performs a desired action there, such as filling out a registration form. This is called pay per action (PPA) or pay per lead (PPL). This model arose a few years ago to mitigate the risks of click fraud.
4. Share of revenue from ad action initiated by your visitors.
This is a variation of the preceding model, called performance-based compensation. It has the best potential to maximize your income, but the results are totally unpredictable.
5. Fixed compensation rate for a specified time period.
This approach is the most predictable way to anticipate revenue from advertisers. You simply negotiate a fixed price per day for displaying the ad on your site, which advertisers see as cost per day (CPD), independent of the ad’s visibility or your visitor response. But rest assured that the advertiser will be measuring results, so a long-term revenue stream is not so predictable.
So if you want to make money using Facebook Ads, your first step is to grow your visitor base. Okay, are you ready to get started?
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