Pay Per Click Explained | Flat-rate PPC | Bid-based PPC
PPC Explained


When you hear the term Pay Per Click, what generally comes to mind?  It might be the word “scam”, or “ineffective”, or perhaps “confusing”.  What should come to mind, is “opportunity”.  With a proper understanding of how Pay Per Click works it can be a powerful tool to generate targeted web traffic for your site and/or business.  So what is Pay Per Click, and how can you take advantage of what it has to offer, without wasting your money and squandering your resources?

The simplest explanation for what Pay Per Click does, is it is an internet advertising model, whereby a website (including search engines) display your content, be it a text advertisement, or a banner ad, and when that advertisement is clicked, it directs the user to your website, you pay a small fee to the website owner.  This model creates a potent incentive to your affiliate, or partner sites, to help promote your website.  With search engines such as Google or Yahoo, when a specific keyword is searched which you’ve paid for, it will appear at the top of the search engine results.   These are called sponsored links, and often appear next to the organic search engine results.

There are several Pay Per Click providers that you can research, and take advantage of their services.  Google Adwords, Yahoo! Search Marketing, and Microsoft adCenter are by far the largest providers.  One of the reasons this can be such an attractive model to you and your website, is because if your partner site does not generate any clicks, since the system is a pay for performance model, it costs you nothing.

Generally, there are two different models to determine the cost per click to you, the advertiser.  When considering which Pay Per Click provider to use, it’s important to understand the difference between these two methods, to best understand how to use pay per click to your advantage.  They are Flat-rate PPC and Bid-based PPC.

Flat-rate PPC

With the flat-rate PPC model, the advertiser and the publisher negotiate a fixed cost for each click.  Often times when this model is used, the publisher will have a map of their website, with the cost for each space varying depending on its prominence on the page.  This style is particularly common amongst comparison shopping engines, such as bizrate, nexttag, or slickdeals.

Bid-based PPC

With the bid-based PPC model, the advertiser is allowed to bid, to compete against similar advertisers in a private auction.  Each of the bidding advertisers let’s the publisher know the maximum amount they are willing to pay for a given ad spot or keyword.  The winning advertisers then pay for each click on their advertisement, based on the amount they bid.  The common practice amongst bid-based PPC websites such as Google AdWords, is to charge a small amount (usually one penny) more than the next highest bidder.

As you can see, Pay Per Click can be a massively effective means of directing targeted traffic to your website, and is relatively inexpensive.  While there is the risk of click fraud, most of the major Pay Per Click providers such as Google or Yahoo, have employed several automated systems to prevent abusive clicks by corrupt web developers or competitors out to cost you additional money.  If used properly, you can find new customers with ease using Pay Per Click. It might also be beneficial to find a reputable pay per click company to assist you with your campaigns.

32 Comments on “Pay Per Click Explained

  1. M Hyman

    So where can I find a ligit pay per click site? Everytime I tried to find something, it never worked. I wish I could, I think its a good idea to so this exp. if your a single mother.

  2. Danish Khan

    Great work buddy! Very good article….the first thing that comes in my mind is “PTC sites are scam”, there are around 10000 PTC sites from which only 10 or 12 are legit and it’s very difficult to find them. I got paid by Neobux and Onbux. Yup! You are right. That’s an advertisement banner which helps its owner to own money as well as us when we click it. Can you mention any legit PTC websites which really do pay money?

  3. air abenes

    As an advertiser PPC is really works a very good deal to advertise in a small amount. But for publisher it is really hard to earn it. I also do PPC but not so many program, I rely only on company that I know really pay.

  4. Szeto Ching

    I have joined many PPC websites before but many of them are scams. Now it seems I have more experience to know which PPC are legit. I don’t mind earning slowly, but I mind being cheated.

  5. Misbakhul Munir

    pay per click program is very god to increase our earnign from online business and it is so effetctive. we can manage the money we have. always pick the best sites for helpin us in this program. thank you for sharing

  6. buddha

    I never knew there were two kinds of PPCs – flat rate and bid-based! I have stopped using PPCs but now after reading this article I’ve gained lot more info. Thanks for this informative article:)

  7. Widi_st03

    I have followed some ptc programs, but now it is time no longer active, because they just waste of time, although I’ve never been able to pay.

  8. Josh T Josh

    Pay-per-click has become one of the most sought after way of earning money online. I will grab every oportunity that pay-per-click will give me. For companies out there,this is a great venue to boost your sales.

  9. Miramaducdoc

    Pay per click is becoming my source of income these days .Others say its a scam,they wont believe me even if i have my money showed to them.Now this article will speak for me ,Its more believable than me,i think.

  10. Thomas Lim

    Pay Per Click programs are the one thing that provides opportunities to so many people for some online earnings. It is so easy to do as one just simply has to click on ads for a specified time, and payment will be made. One just has to be so careful not to fall into scam sites that will eventually lead to wasting time. I truly look forward to more legitimate PPC sites in the internet.

  11. joycew

    although Pay Per Click can be a massively effective means of directing targeted traffic to your website, and is relatively inexpensive.but not everyone agree with it.people wanna share information free.but this idear seems good to everyone.

  12. Rhennel Dequina

    Pay per click is a good venue not only to earn but to review a new advertisement or a website. I know we could earn a good income here if we are very patient, and knows the rule of the game and of course have lots of referral. Renting a referral would be a very good alternative if you are not good in getting a referral.

  13. Ram

    Pay Per Click is really a good way to get good traffic of serious users to the website. Website owners do not consider PPC as scam, because genuine traffic is brought through PPC. Both flat-rated and bid based PPC are good options in their own, and both can be accepted in different time.

  14. Batencila Annabelle

    It’s one of the best way here to earn while enjoy using your computer. I’m not a member of any but I heard many news that they use this to earn. Wish it’s all legitimate and can really help. Good article!

  15. Mariahhh

    This is a really informative article. Pay per click is a very good way to increase traffic in your website. I only knew about the flat rate PPC, never heard of Bid-based PPC before. Thanks a lot for the info.

  16. Amber

    Well I heard a lot about the advantages and benefits we can get from PPC program. I might say that we can consider it as a vital part and one of the most effective way to promote your online business. There are numbers of PPC programs offers a great deal just choose your best option for your campaign and earn money from your site with referral and affiliate programs.

  17. Mtrguanlao

    When I was looking for ways to earn online,I’ve seen so many pay per click sites that I could join. I never thought of those as scam as I am not aware of scam sites. But being a member of some pay per click sites now,I could always tell new members that they wont regret it.

  18. Rajeev

    Pay per click is good for advertiser but it too have it’s own limit. Many pay per click program like Google adword had done well in past but they also have suffered from invalids clicks. All these are part and parcle so we have to go with it.
    People must choose wisely according to thier product to go with which advertiser. I say, i will not go with those site that pay for clicking ads all these are bullshit spam and told other not to go as well.

  19. sucelled

    IMO, PPC is quite a good innovation to serve the need of advertisers. especially since if i have it correctly, the cash outlay/investment needed to sustain such means of advertising is less vs. than the more traditional means e.g. print or tv (especially true for companies advertising in and out of the web). regarding scams associated with it, i think this could easily be countered by getting the proper research of which platform/providers you should trust your business with.

  20. Nigildas

    so long i was thinking all ppc sites are waste and they never pay for us, But after reading this post i have a clear idea what actually pay per click sites are. And this is really an opportunity for all aspirants looking forward to make some revenue through the net.

  21. Darshiprakash

    Advertising in ppc sites is the good way to get more visitors and traffic to our site, we must find the good site with lot of members to place our ad which will be useful to get unique visitors

  22. Tara Curmon

    I have not considered advertising with ppc sites for quite some time as I was under the impression that this was a scam and I would certainly loose any investment I made. After reading this article I am again considering ppc to advertise my website and increase my traffic. Thank you for shedding light on this industry, I am thankful for the information as I’m sure many of my fellow page masters are.

  23. Manroks23

    This post will surely spark a light on those who has lost all their faith and hope in PTC business,it also provide us with the simplest strategies to achieve success to a great extend and also making it more understandable……

  24. Anonymous

    It gives a genuine information on advertizing and teaches how to target the traffic . Today many do not trust Pay Per Click. But this articles seems to be useful to understand

  25. kerry

    There are many companies using the pay per click now. I guess the “bidding rank” or “paiding list” is similar as the second style, right? It is a very common promotion way for the suppliers.

  26. emdjay

    I have so many sites that I joined later this year, some of them turned out scam.. there where only 1 left in which I worked for. The only PPC site that’s left and it isn’t scam. Thank you for that information at least I know that PPC is not only works for scam sites but I can also use it for traffic..

  27. Derek Heppler

    I think pay-per-click is a very smart and efficient way for websites to make money, and for advertisers to reach their market. It is also smart to get a ppc company to help you out if you have no knoweledge, otherwise competitors will end up costing you more money for your ads.

  28. Manroks23

    I was actually not aware of these things initially, but this article has given me some good ideas how PPC network works and their differences, its great to know about the strategy of this network and the benefits they obtain, I have a more clear vision towards PPC right now……

  29. Ronnb

    This information is very valuable to me a struggling web site owner .I am really going to research this some more and see if I can really direct traffic to my webside

  30. Pisces19

    It’s a good thing to use this pay per click because it helps a lot in some of our businesses online. Just hope there’ll be a better way to protect us from scams online. Nice article.

  31. Rolybatencila

    Great article!It really helps those who succeed online. Wish I can use this pay per click in some of my online businesses. Thanks!

  32. Ihsan Fitriadi

    I’ve never really pursue the PPC business, because I think it is rather difficult to obtain money online from this program, if they do not spend much time. But the explanation of this article, maybe my mind about binis PPC began to change …. Thank you!


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