Google Adsense is a simple online business model where you allow advertisers to show their relevant advertisements (in short ads) on your website. When your visitors click on their ads, you earn a fee.

This pay-per-click model gives a good passive income which can grow to very big sizeable earnings if done correctly. However, in order to be successful in building up this passive income, you must get 5 secret components done correctly.

#1 Choose the Right Keywords and Market

This is the most critical step. You need to choose a hot market for your content website. This ensures you will get loads of traffic to your webpages so that your ads have a chance to be viewed and clicked on.

With the right market, you will have a better chance of finding profitable keywords that you can build the website around. Google serves ads based on the keywords that it find on your website. If your website is focused on a hot market and have the right keywords, your earning could go up to $0.50, $1 or even $10 per clicks.

However for those high-paying ads, the competition in the search engine placement will be high too. Unless you are an expert in Search-Engine Optimization (SEO), you should try to build webpages with the 2nd, 3rd or even 5th most profitable keywords. Don't overlook this strategy. It might even generate more traffic to your website then if you only focus on the most profitable keywords.

#2 Generating content pages in optimized manner

After identifying your keywords and market, you need to upload articles that contains those keywords onto your website. You could write this articles, get a ghostwriter to write them or even use relevant articles from Article Directory (note: you need to ensure that the resource box are not removed).

With the articles in place, you should also include your keywords in your webpage meta-tags such as your website Headline, Descriptions and Keyword tags.

#3 Choosing the right layout and correct placement of ads

Always try to place your ads above the fold of your website. In doing so, your visitors can see the ads immediately without having to scroll. Make it easy for them!

There are hotspot on your webpage that you should place your ads for maximum chance of being clicked on. Generally speaking, the space on the left and top of your webpage are the hotspots. You can get more suggestions on the heat map from Google at http://www.google.com/support/adsense/bin/static.py?page=tips.html#17954.

#4 Driving Traffic To Your Adsense Sites

Having the best keywords and best layout would be useless unless you are able to drive traffic to the website. By doing step 2 and 3 correctly above, you have already done most of the job. Now you only need to do the following steps:

* Submit your website to all the search engines such as Google, Yahoo and MSN
* Add your links in your signature on forums
* Add your link to your email
* Exchange links with other similar-theme sites
* Join traffic-exchange sites such as InstantBuzz
* At advance stage, you can consider to buy traffic to your website using other cheaper pay-per-click services. But use this technique only if you have high-paying ads on your website and you are sure that your click-through-rate on those ads are high.

#5 Tracking Your Traffic

Look through your logs regularly and track your click-through rate from Google. From your logs, you will be able to identify which keywords and webpage are getting more traffic. You can then either fine-tuned those lower-traffic webpages or replace your Google Adsense ads on your high-traffic webpage with links to either your own products or your own affiliate links. By using this strategy, you will increase your earnings greatly.