Google's Adsense program provides the perfect way to generate an ongoing passive stream of income for the savvy internet entrepreneur.

It is free to join and easy to set up.

I hear you ask, if it's so easy why isn't everyone making piles of money by slapping Adsense code into the pages of their websites.

Well there are a number of factors that contribute to a webmaster's success with Adsense not least of all having a contextual website.

If you base your quest to make $500 dollars a day with Adsense on the following, you stand a good chance of sustained success.

1. Don't build a site for Adsense

Apart from being against adsense's TOS, site's created purely to carry adsense ads don't work in the long term.

They will in all likelihood get banned by Google, won't make money as well as making it difficult for you to open another Adsense account.

2. Build a Site with Content

Sounds obvious doesn't it, but sites that are interesting and packed with compelling content are more likely to be revisited and related ads are more likely to be clicked upon.

Be sure to use your own original content - sites that duplicate content get penalized by Google.

Remember that rubbish sites generate rubbish income.

3. Choose Your Site's Topic Carefully

Whilst your site should be based on your business interests or your hobby to keep your motivation levels high, just keep in mind that certain topics will attract higher value Adsense clicks than others.

For example a website on the mating habits of the north sea clam probably won't attract any advertisers and therefore no Google Ads to display, let alone traffic.

Making money online and web hosting are topics that will never be short of advertisers, however the competition is higher and therefore more difficult to attract website traffic.

4. Niche Market

Your best bet is to target a niche market that does not have the competition in terms of fellow webmasters but still has a certain amount of interest.

Therefore if your website is cameras, targeting "digital cameras" would be a very competitive term, whilst targeting "underwater digital cameras for scuba divers" would be less competitive and will attract targeted traffic as well as related Adsense ads.

It is important that you understand that the text and keywords you use and the placement thereof will influence the type of ads that are served up by Google.

5. Type of Ads and Placement

The placement of your ads on your web page has a direct influence on your CTR (Click Thru Rate) - the higher the CTR the more clicks your ads are generating and the more money you are making.

To this end, take special note of the heat map provided by Google that shows the best positions for your ads on your web pages.

Also decide carefully on the type of ads and the colors that you choose - the type that blend in well with the look, feel and flow of your site will probably be best in silently persuading your visitors to click on them.

6. Traffic Statistics

Finally analyze your adsense traffic stats as they're packed with useful information - Google provides such a tool for this purpose with your Adsense account.

To make money with adsense you need to know what your stats are telling you and what you need to know.

The amount of traffic your site generates will obviously influence your adsense income but that is a whole separate subject just on its own.

The point is that for 2 sites generating the same amount of traffic, the site that is optimized for adsense, as above, will earn for more in adsense income than the site that isn't.

To find out more about how you can make $500 a day with adsense visit:

http://www.internetbusiness.co.za/adsense-decoded.htm