Bloggers blogging for a number of reasons, but the idea of making money from their blogs came up as the blog movement has increased in popularity. There could be hundred ways how bloggers earn money from their blogs, but here is the most popular:

1. ) Google Adsense
Google AdSense is undoubtedly the most popular Pay Per Click (PPC) program in the industry today. If you are enrolling in this program, AdSense will display a series of ads on your pages. Every time a visitor of your clicks on these ads, you stand to earn money from it. Just a click and Adsense will pay you. The ads appears on your sites are contextually relevant to the contents of your sites.

2. ) Product Promotion
Businesses use blogs to detail how specific features or product add-ons can increase functionality and save time. Content-rich product promotion will help with search engine placement.

3. ) Affiliate Programs
Affiliate Programs work when an affiliate web site receives income for generating sales, leads, or traffic to a merchant website. Generally, bloggers will mention or endorse specific products and if site visitors purchase the product, bloggers will receive a portion of the sale.

4.) Banner Ads
This could be work on high traffics sites. They can earn money by selling their banner ads.

There are people online today making six figures per month from these ways. Unbelievable but it’s true!!!!

Optimal Ad Positioning

The position of your ads will have a great impact on whether your readers pay attention to your ads, and as a result it will affect your CTR as well.

You want your ads to be in the center and middle of the page to make sure that they get maximum visibility. Of course, you still have to make them look like part of the text, otherwise you'll just turn readers off and they will close the page instead of clicking on a link or an ad.

This tip relates to all advertisements. This is why contextual ads work so well. Contextual ads are links placed directly in the content of your webpages. They usually promote affiliate products, but some work similar to PPC publishing where you're paid per-click.

Contextual ads work so well because they appear as related content. They don't appear as 'blatant ads', so the readers don't turn on their ad-blinders. We'll talk more about this when we discuss other ways to monetize your sites.

There are two ways to place AdSense ads inside content:

One: Place rectangle ads (such as 250 x 250) above the content (below the heading, above the content body) so if you had a page on 'Make Money' it would go something like:

Relevant Ads

What are your readers looking for? If it's a search engine visitor, they are usually there looking for information on a topic -the keywords they typed into the search engine to get there in the first place.

Since they have come to your website looking for more information on that topic, you'd want your ads to be about the same subject so that your visitors pay attention to the ads (because they are relevant to they are searching for) and click on them.

In my experience, don't waste your time with AdSense banner ads - especially if your site is a content-only site. What I mean by this is that your site's primary purpose is to provide content information instead of trying to sell a product or service. Banner ads act as "distractors" instead of aiding in more clicks.

How To Combat Ad Discrimination

How do you circumvent the inherent dislike people have against ads?
By changing them into information (i.e. don't use something that looks like an ad).Quite simply put, your AdSense blocks should be less like ads and be more like the text on your pages. Since your visitors came to your website looking for information on a particular topic, your goal is to ensure that your ads look as much like that information as possible.

Targeted Ads

As AdSense uses keyword matching to deliver ads to your website (they first find out the most important keywords on your website and then deliver ads based on those keywords), it's important that you write keyword-focused pages.
If the ads are not relevant to your site's topic, not only will they be out of place but they will also become 'distractions' - visitors will cast them aside as 'fluff' that is outside the realm of information that they are looking for.
Make sure that each page on your site is focused on a single keyword phrase - use that keyword throughout your article as well as in all the right areas (title tag, header tag).
Restricting the focus of the topic you are writing about also lets you write keyword-rich content in a natural, conversational voice - you're not forcing the keywords in but instead talking about them as you would talk to another person.

Proven Ad Formats

Allowing for positioning, colors and keyword targeting, some ad formats still manage to get a lot more clicks than others.

While AdSense isn't the only way to make money off your website, it is definitely one of the easiest - all you have to do is configure your ad, drop it into your site template and pat yourself on the back - you're done for the day.

Unfortunately though, setting things up, and actually making money from AdSense are two different things. To earn money from AdSense you need:
1. Website Traffic (visitors)
2. Clicks on your ads (high click-through rate)
3. High-paying clicks (top-paying, most profitable keywords)

How Do You Get People To Click On an Ad?

1. Make them pay attention to it – if they aren't looking, they aren't clicking.

2. Have ads that match the reader's needs – search engine visitors are typically looking for information on a particular topic – are you giving them that information? Are your ads?

3. Overcome the “this is an ad – ads are bad” psychological barrier – in our society and on the Internet we are continuously bombarded by ads and there is a subconscious resistance to them – you have to either overcome it or ... as I'll show you, sidestep it.

Attracting Attention

Most people think that the best way to attract attention is to use bright colors and generally make sure that the ads stand out. It's a good idea in theory, but think of what happens in the real world...

The first time you see a bright, garish advertisement, you look at it because it is distracting, not because it is appealing. The second time though, the advertising is less distracting, although you still look at it. By the fifth time around, you are able to ignore the bright ad completely and focus on what you were doing before.

This phenomena is called ad-blindness - our minds shut out the distractions of ads that are not helping them get what they want.

So first you have to figure out what your readers want. Then you have to make sure that your ads match that.