There are three main methods of pricing advertising:
CPM (cost per thousand views). This is the traditional way television, radio, magazine, and newspaper advertising is sold. A few higher value sites can sell ads this way on the Internet, but it's not easy. CPC (cost per click) or PPC (pay per click). In this pay-for-performance model, the advertiser pays only if a potential customer cares enough about the ad to click on it. By far the largest amount of Internet advertising is sold via this model. CPA (cost per action) is either pay-per-lead or pay-per-sale. Affiliate marketing (which we'll explore in another article in this series) runs on this model.
Now let's look at the 8 steps to ad revenue generation.
