How Google Makes MoneyHave you ever really thought about how Google makes money? With billions and billions of dollars in revenue reported each year, it's no secret that the search engine business is profitable. And when it comes to search engines, Google is still King of the Mountain.
What makes this such a profitable industry? For one thing, most of the operations are done by computers and software. While high-profile employees like Matt Cutts prove that there is at least one human or two in the back room, much of the day to day work is done by computers.
How does this compare to other industries? Many products or services require machinery or processes that add expenses impacting the bottom line. Additionally, there is advertising, packaging and marketing involved that likewise affect profits, which don't apply to our case in point. That's not to say Google doesn't have expenses, but in comparison to other industries, its profit margins are higher than most.
At present, Google is the leader of search technology. It blows away every other engine on the planet and offers added services like Gmail, Google Documents, Google Voice and a plethora of other options to worldwide users for free (or very cheap). Yet how Google makes money is simple: it provides advertising services to companies all over the world.
Quality Of Results vs. Advertizing EarningsWebmasters who don't care to wait for (or rely upon) free search engine traffic, purchase Google Adwords and pay for traffic, click-by-click. In turn, webmasters who allow those ads to be shown on their site are paid for referring traffic to advertisers. When clicks are fraudulent or don't result in action, advertisers blame poor search results and won't spend money on Adwords. That hurts Google's bank accounts. So quality of search results is of prime importance.
To sum it up, here we have the company who controls what is visible in search results on one hand, and the company controlling the number one way to get traffic without using search . . . on . . . the . . . same hand. Hey now. Wait a second! Could that be how Google makes money on the side, by controlling search results and forcing people to purchase more Adwords? It can't be, could it?
Of course not. It only looks possible.
However, as this ever-expanding corporation increases in size, it will find itself falling under more and more scrutiny by users as well as its customers for questions like this. In fact, it’s already under investigation for anti-trust allegations. So while neutrality may be one of its Founding principles, public perception will eventually become just as, if not more important to its enduring success.
What YOU Need To Know About Google’s Quality GuidelinesHow Google makes money is not just Google’s concern, either. It is also the concern of every webmaster in the world who expects to rely on organic traffic from the search engine. It behooves every site owner to learn and follow the quality guidelines published on Google’s website. These guidelines are instructions to webmasters on what content is desirable, what to do, as well as what not to do to avoid ranking penalties.
Recently, though, these guidelines are proving less reliable as false-positives emerge through algorithmic changes and obvious low-quality sites (false-negatives) dominate search engine results pages. Meanwhile black hats get away with major manipuation (for one appalling account, visit the Site Build It Scam Home Page to read about the destructive force behind Google’s neutrality stance).
Despite the fact that Google doesn’t follow its own rules, webmasters should follow Google’s quality guidelines closely and only publish high-quality, original content. Barring algorithmic false-positives, high quality content is safe and stable. For now. Using the proper keywords attracts high quality, targeted traffic that clicks on advertisers’ ads, converting to sales and making advertisers happy.
Giving Google what it wants helps Google to grow its advertising base, which is how Google makes money. http://site-build-it-scam.com