Running ads on your site is one of the most common ways of generating revenue online. There are a lot of reasons why so many people and companies want to sell ad space, but unfortunately, many people also find that they end up not making nearly as much as they thought they would. Consider the pros and cons before deciding to use ads as all or part of your business model.
Pros include the following:
- You don't need to carry an inventory of products. You don't need to worry about having products, shipping, dealing with damaged products, returns, etc. That will save a lot of time, money, and effort.
- If you can build an audience and create a loyal following, selling advertising on your site can bring you considerable revenue and enable you to generate enviable profit margins.
- If you decide to make a career out of selling ads on your site, you're basically setting yourself up to run your own media agency, not too dissimilar from a magazine or newspaper. It's pretty cool, and provides a lot of room for strategic and creative thinking.
- You need to keep your site updated regularly. Whether your site is news-oriented, video-based, a social network, a blog, or something else entirely, be prepared to create new content on a regular basis to keep users engaged.
- Selling ads works only if you can build either a very large audience or a very targeted audience, which can take time and a lot of effort.
- In many cases, you'll be at the mercy of the advertisers, and you'll have to rely on their accounting and their payment terms. That means you may sometimes end up getting paid less than you expect, and have to wait 60 to 90 days to receive it.