Once you have optimized your blog and started getting hundreds (or even thousands) of visitors daily, you may think of monetizing your blog. As you know that money follows fame, you just need to show the CORRECT path to it, so as to monetize with maximum potential and to get a continuous flow of money.
One of the easiest way of making money is of course advertising. Although direct selling of ads on your blog is the most convenient way of advertising, but generally it is not advised to new bloggers, as it can take several months and attempts to get a single advertiser (and of course you'll initially earn less than your expectations after all negotiations), due to which bloggers may even start losing interest in blogging.
So other than direct advertising usually the choice of majority of bloggers is either Google Adsense or Bidvertiser or any other similar service where you are supposed to place some javascript files on your blog and hence, banner ads will be shown on your blog. And a certain amount of commission is paid to you by the service provider.
May be 5 years back this would have worked for you, but now these banners have gone really bad [Banner Blindness]. With most of the new bloggers reporting a very low CTR (clicks per 1000 page-impressions), only experienced bloggers are able to make money by this method with correct placing and blending of the ads with their content, and of course with millions of page views per month. Moreover with tools like Adsense-blockers, many visitors do not even allow your ads to be displayed in their browsers.
So the better way to advertise is In-Text Advertising, (DO NOT confuse it with TEXT-LINK ads). In text link ads, you have to hyperlink any text to the sponsor (with HTML of course), BUT in case of IN-TEXT ads, a small javascript file is placed in your blog template. This javascript file creates VIRTUAL hyperlinks in your blog for specific keywords, already present in the post.
When visitors notice these VIRTUAL hyperlinks and click on the ads, you'll get paid for those clicks.
You have many advantages by using this system over banner ads:
1. Readers will notice the ads while they are reading the post (so more chances of the ads being clicked)
2. As these are VIRTUAL hyperlinks, which is due to the javascript file and NOT due to direct HTML coding, so you will NOT be penalized by Google and so there's NO risk to your blog's PageRank.
3. You can yourself decide the color of the links, number of links per page, and whether they should be underlined with a single line or double lines.
You can use the services from these websites:
Kontera
Infolinks
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