I'm going to try and explain in a nutshell how Google Adwords works. More detailed information is provided on the Google website and I strongly urge you to go to their site after reading this article.
Google has made many businesses/publishers rich through its stronghold on the advertising market. Yahoo, MSN and others have similar advertising models but none have reached the audience Google has. With that being said, how does the average person (without a product) make money through Google's Adwords business model?
The answer is, look at the Adwords content of those that are getting in the top ten of the search engines.
Adwords ads are created using keywords people type in search engines to find products, services, or information.
For instance: if you where looking for golf clubs, you may type that exact word combination in a search engine. The more specific you are chances are you will receive more tailored results.
The Ads that are returned on the right are paid ads that link to a website that offers products or information on your request.
Adwords ads are paid ads, meaning that when someone clicks on it Google charges you. So it is wise to ensure you are targeting people who want to purchase if not you will blow your advertising budget.
Adwords also allows you to market other people products. You pay Google for the click and if said individual makes a purchase the seller shares the profits with you (Affiliate marketing).
Instead of tirelessly searching for products and services the Adwords Keyword tool shows you what words or phrases are frequently searched on and how many websites (competitors) cater to that word or phrase (Performance statistics).
Most marketers use this technique to build their websites and marketing campaigns. It is to the Advertisers' advantage to chose keywords and phrases that have a high average search volume.
"Cost Per click" or CPC is the amount paid to Google each time a user clicks on an ad from your campaign. Since we just spoke on how much you will be paying Google for their pay per click services lets talk more about how you get paid.
If you don't have your own product or service to offer:
The most complex part can be choosing an Affiliate with a landing page that has a proven high conversion rate (visitor becomes a buyer). You can also use your Adwords account to send potential customers to your landing page that motivates people to buy (motivational triggers).
You can find a host of Affiliate networks on the Internet, my personal favorite is ClickBank. Click Bank has a tool that will show you how well a website converts its views to buyers.
Although you can make a nice amount of money in a short period of time with Adwords it is not a "get rich fast" program.
If you are looking for a for fast cash be prepared to fail at Adwords. What Adwords provides is another vehicle for someone with dreams of working at home an avenue to do so.