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The Complete Idiot's Guide® To WordPress by Susan Gunelius

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Types of Ad Payment Models

When it comes to online advertising, advertisers pay publishers in a variety of ways. Payment typically depends on clicks, impressions, or actions (more on these in a little bit). Alternately, an advertiser might agree to pay you a flat fee to publish an ad for a predetermined length of time.
 
It’s important to understand that the amount of money you can make from blog advertising depends on two primary variables: traffic and placement. The more traffic your blog gets, the more advertisers are willing to pay for ad space on your blog, and the more money you can make from clicks, impressions, and actions. Furthermore, advertisers usually pay more for ads placed in positions where the most people will see them.

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