Basically Google.com and yahoo search engines are free of cost and provide you a platform to search your relevant websites through their own search engines. These search engines have different algorithms where they check website’s worth, Page rank, Out bound links, alexa, referral traffic and paid traffic, In bound links, natural traffic, pages search every day and much more. Once your website is capable of these, you can now apply for free Google adsens or yahoo ads. After making an account, you would be provided with a script and you will place it on your website, once your account has been approved, ads would automatically be shown on your website. Each ad working on your website has a different rate which is only known to that company whose ads is being placed suppose, you have Google Adsense, once ad is being displayed on your website, you never know, if someone click on that, how much Google will earn and what would be given to me. Well, Google Adwords is here to help you more.
Advertisers pay through Google Adwords depending upon your directions, Google Adsense provides a free platform to webmasters who wish to earn and Google play a role of middle man here.
You Pay at Adwords>Google gets your money> Place your ads in Adsense>Webmasters place ads on their websites> Google Pay to webmasters depending upon their CTR> Rest of the money is earned by Google.
First of all people are unaware of the rate and click rate offered to them, suppose if you choose word insurance through adwords you have to pay $47 approximately for click, but when ads is displayed on any Adsense account holder he/she is totally unaware of the amount that Google has paid to him/her even though that person click through your website. Google Adwords is the major source of income for Google company.