This is a must read for all beginners as understanding the adsense Business Model is a prerequisite for any serious AdSense work. I get this information from adsense4money
AdSense revenue is based on a very simple formula :
Revenue = Traffic x Click Through Rate x Average Revenue per click
Revenue
This is your motive join with adsense, get a lot of money from adsense to your pocket.
Traffic
In this context, traffic is the number of times a google ad is displayed on your website for the considered period of time. How many visitors come to the site and read every article in your web.
CTR is how many clicks you get out of 1 (one) page impression. CTR indicates how well the ads are doing.
Average Revenue per click
As the phrase indicates, this is the amount of money Google pays you (in average) for every click.
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