After conducting enough research and my own personal experiments, I have come to the conclusion that if you wanted to make money online through Google Adense, you have to follow a Business Model described below. This business model is a key to success no matter either your goals are short term or long term.

This Business Model consists of following four steps.

Step 1:  Selection of a Niche and Keyword Research

Step 2: Domain Name Selection and Website Development

Step 3: Internet Marketing (SEO and SEM)

Step 4: Monetizing Website

Step 5: Monitoring and Improvement

Selection of a Niche and Keyword Research

The first and the most important part of this business model is selection of a Niche. This niche should have enough demand and traffic to meet your income objectives. This estimate can be prepared by finding keywords in that Niche and calculating their PPC rates as well as number of searches per day. It is also very important not to select an already saturated niche as it will take a long time for your website to come up in that competition. The best niche is the one that has more than 10,000 searches per day (top 100 to 150 keywords) and an average PPC rate in between $1 t $2 with less competitive websites being found on those search keywords at google, yahoo and bing.

Domain Name Selection and Website Development

Once a Niche has been selected, it is critical to choose a Domain Name that help visitors to understand its scope (purpose) from its name. Moreover, from SEO point of view, it is important that your main keyword should have been included in the domain name (A domain name which is itself a keyword is known as Nugget Domain). If a single word keyword domain is not available, it would be wise to choose a composite keyword domain (a domain name having more than one keyword in it).

Another important aspect is the type of TLD (Com, Net, Org etc) you should choose for your domain. A .COM is already preferred domain no matter whatever purpose you have from that domain. However I shall give equal importance to .NET and .ORG as well. But be careful not to choose .INFO or .BIZ domains. They are not as search engine friendly as the first three TLDs.

After choosing a domain name, it is the time to start the buildup. As you want to earn money by displaying Google Adsense so you need a website full of contents. If you are good in writing English articles, then prepare it yourself otherwise hire some freelancer to do the job for you. Make sure it must be end user friendly. Try to focus one or two keywords per page/article so that it should be easier to do SEO for it.

Internet Marketing (SEO and SEM)

Once you have got your website up and running, you need to focus on its Marketing i.e. SEO and SEM. SEO stands Search Engine Optimization while SEM stands for Search Engine Marketing. In SEO, there are activities to make your website optimized for search engines to crawl and rank your website or page for desired keyword. These activities are called On-site SEO and Off-site SEO. In On-Site SEO, it is tried to made web page titles, URLs and contents to show desired keyword frequently. Creating an optimized navigation throughout the website is also part of On-Site SEO. While in Off-site SEO, efforts are made to spread links of website or its pages across the Internet. As much websites would be pointing to your website as more benefit you will get from search engines in ranking. A link from other website to your website is counted a vote of confidence. More links mean more confidence and hence search engines will give your website more importance in ranking.

Search Engine Marketing (SEM) is focused on advertising with search engines for PPC campaigns or through affiliate networks. The basic objective of SEM is to bring more and more quality traffic to your website and establish a brand name.
Monetizing Website

Once you got your website visibility in search engines and got some other traffic resources, it is time to monetize the traffic. The best way to monetize rich content website is to display Google Adsense there. Apply for Google Adsense account if you don’t have one. They need your website URL to confirm that you are serious publisher. Once your website is approved, you can put ads on as many websites as you want. However it is important to read their Terms of Service to make sure you are not going to violate any of their term which can result in your account being banned.

There are other PPC networks such as Ads Bright, Clicksor, Bidvertizer etc. But it is a common opition that no one else is as profitable as Google Adsense.

Moreover, you can use some monetizing networks along with your Google Adsense such as Chitika. However they pay quite low as compared to Google Adsense. But you can use it intelligently to actually use it in addition to Google Adsense and not as an alternative.

Monitoring and Improvement

Once you got your website up and some cash dropping by into your account. It is time to monitor sources of your traffic. Track traffic keywords and your website ranking for those keywords. Improving your ranking for such keywords means more traffic which will obviously convert into cash for you ultimately.  Moreover, try to find out more keywords related to your niche and keep adding more pages (targeting these new keywords) from time to time.

Google provides a very handy and useful resource Google Analytics to help you monitor your website traffic. Go and use it for your website. There is no alternative to this not even in paid services.