Tuesday , 2 September 2014
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How Does Google Make Money?

There are many of you who are wondering how did Google start out from a garage and make it this big on the Internet and where does their income lie?

In this article, I will try to answer your question.

Today whenever you are trying to search for something, the first thing that comes to mind is ‘Google it’. Google has provided Internet users with loads of valuable products and facilities. The most popular of these are the following.

  • Google Search Engine
  • Gmail
  • Youtube
  • Orkut
  • Google Adsense
  • Google Adwords
  • Blogger
  • Google Maps
  • Google Earth
  • Google News
  • Google Analytics
  • Android (operating system)

Now, here are the possible ways in which Google generates their income.

1. Sponsored Results: These are the results that appear on the right hand corner of our screens after we execute a search on Google. Websites that appear on the Sponsored Results tab have an agreement with Google where they pay Google for showing their website on searches for specific websites. For example, if we are searching for a Samsung mobile phone, we see websites selling Samsung mobile phones in the Sponsored links section. Google earns some money when we click on any of these links. The question is how much money does Google earn from this? Google Adwords allow all potential advertisers to put up their adverts, specifying the keywords. After assessing the advert, Google will quote a price for your advert.

2. Google Adsense: This is an advertising program which was started by Google where every one of Google users can make money online. Website owners and bloggers are the ones who gain the most from this program. It depends on the amount of traffic that your website or blog generates. Advertisers pay Google some amount of money, every time someone clicks on their link as it helps them to increase their various businesses. Google also pays website and blog owners some revenue for every click on their Ad sense which is present on your blog/website. Google keeps part of the revenue that they earn in the process and pay remaining amount to the publishers.

3. Google Image search: Google also shows sponsored results for images under Sponsored Links above the rest of the results. These are also a means to earn a lot of money for Google.

4. Gmail: When we sign in to our mail accounts on Gmail which is probably the most popular at this point in time, we are shown sponsored links on our accounts. And these links are always relevant to the keywords of the mails that we receive.

5. Orkut: Google displays text and banner ads (Google Adsense) on Orkut profiles and pages.

6. Android: Google makes money (and justifies giving away the OS) by licensing the Google Apps that come on most Android phones (but not all). Apps like Gmail, the Android Market, Google Search, and others come in something called GAPPS. The Market is really where Google is interested. Sure, the other GAPPS add value to the phone (hence why carriers license their inclusion on Android-powered phones), but Google is making money with every app sold through the Market. Even free apps make Google money. Developers have to pay to have an account to list their apps under. Even ad-sponsored apps are likely using Google Mobile Ads, so Google’s getting revenue from that source as well.

7: Youtube: Google displays text and banner ads (Google Adsense) on youtube videos and sidebar of YouTube pages.

About Vijayraj Reddy

Vijayraj Reddy is founder and editor-in-chief of popular blog Methods2earn.com where he teaches people how to make money online.

42 comments

  1. Do google really make that much amount all from advertisements and sponsored ads! Sounds great

    Anyway, for a long time I am thinking how open source applications like linux earn money. If you know something let me know

    Nice post, cheers!

  2. Great article! Very useful answer about how Google make money through many type of online business and how they are still number one search engine today.

  3. Hi Vijay,

    As far as I knew google is not a search Engine. But Search Engine is a part of Google.. Google’s main revenue stream comes from advertisements. And how Facebook is also following Google’s Footprints.

    Thanks for Sharing
    -Imran

  4. Nice write up Vijayraj, another way Google makes money is by selling is pro services to business. Google has dedicated services for business.
    Eddie Gear- The Guy With An Attitude recently posted..Best Traffic Generation Tip ContestMy Profile

  5. Shailendra Singh Bais

    Ya, u are right.

    Google began in March 1996 as a research project by Larry Page and Sergey Brin, Ph.D. students at Stanford working on the Stanford Digital Library Project (SDLP). A garrage office to a office at Cal…
    Long journey, it gave new dimensions to searching. 97% of its revenue come from Ads. It also earns from Sites, Products, Base, etc, etc.. Infact, I have decided my first post of blog will be dedicated to Google. Certain things r must for bloggers, reader, mail, Orkut Share,bookmarks, Sign-In Searching, etc.. even, one can earn making Google Apps. I guess… Hey, can u help me. I wanna, make a application which records ur voice and gives out file in .swf format…

  6. Hi Vijayraj,
    I think it’s definitely Google’s sponsored results ads (Adwords) that really put Google in the position they are in today. The other programs including youtube came really later after Google was already making huge money.

  7. That was nice overview on how google makes money. Out of the list the only think I couldnt understand is Analytics. How do they make money from Analytics? There is no fee and no ads then how they make money from that.
    You can also add Google Buzz to the list.
    Mukundan Srinivasan recently posted..8 Ways to Get More Blog SubscribersMy Profile

  8. Hi there Vijayraj,
    Great article explaining how Google makes money for itself. You are right Google offers so many services and have quite a unique way for generating income. Have you noticed most of the products they offer do not charge common man but only Businesses. Yes, Google more or less rely on B2B mechanism than B2C for generating income.

    Regards,
    Shiva

  9. Google is giant in the internet field. They earn money in all they do.

  10. Hi Vijay,

    Before reading this post, I only know about adsense, adwords, and affiliate marketing of Google.

    Thank you for this complete list

    ~J
    Jenn recently posted..Is MacBook Pro MC700LL A GoodMy Profile

  11. If Google start transferring adsense earnings to bank account wireless with few charges then also they can get good scopes because no one want to wait for so many days for check payment . They can also allow users to transfer adsense earnings to google checkout function or use those fund to do shopping on google stores .

    Google has invested big funds in many other sectors and all will be booming very high soon like – electric cars etc …
    Atulperx recently posted..70 Best Free Wood Textures for DownloadMy Profile

  12. Hey Vijayraj, nice explaination here. By the way from the Adwords Google make sufficient money. Great stuff !!

  13. Thanks vijayraj,I never knew that It has so many services

  14. kbharath @ Techntricksonline

    Thanks for sharing this info Vijay. you have made the list clear and googles main income is through advertisements.

  15. It’s all advertising revenue – Orkut, Youtube, publisher blogs, search, Android etc are just a number of channels to boost their ad revenue. They are pretty smart right? Instead of building products and selling them, they offer it for free via multiple channels and package ads with them :)
    Ajith Edassery recently posted..100 Ways to Make Money OnlineMy Profile

  16. I think Google Adsense is the best program to earn online. :)
    Anuj recently posted..5 Simple Way To Bring Traffic To A Brand New BlogMy Profile

  17. Oh, I never know that blogger is owned by google (how much fool) haha.
    You’re absolutely right google is all running on their large advertising network.

  18. Google make money by take the percent from Google Adsense & Google Adwords.
    Dave recently posted..Rogers Will Launch Sony Ericsson Xperia Play And ArcMy Profile

  19. Thanks for the info and web site quality. Greetins from Chile.
    Leonardo recently posted..Danna Paola y Eleazar GómezMy Profile

  20. Google now join to many market that make money from there. That are ways.
    Tony recently posted..Onkyo WAVIO Audio Card With Creative’s X-Fi TechnologyMy Profile

  21. google has lots of resources for money….. nice article
    kavita recently posted..Lyrics of Saye Saye Song – I AmMy Profile

  22. Google is king of the world..It is like the only ship sailing in the sea and rest all are following it or trying to climb on it..

  23. Nice article vijay… Google earning most of the money from adwords and advertising campaigns.. Thats great..
    Thiru recently posted..Graffiti Wall – Marvel Art on FacebookMy Profile

  24. Google is Google that’s y!!!

  25. Their Google Adwords covers most of the part,Thanks for the post

  26. some of this article phrases are copied from some website

  27. google earning through really a great way… :)

  28. earn mani for google

  29. google is not a search engine but search engine is port of google becouse that is known us

  30. Nice article, I really couldn’t believe the way Google earns money, I never tried to figure out how they earn money though, I just didn’t think about it. Do you mean that if people stop clicking on Google ads Google will stop earning money or probably may go bankrupt. I never thought those are ads and Google gets paid for that, Google made all of us fool by not revealing as to how they make money, I guess the day Google reveals how they earn money less people will click on their ads. Really stunned by the way Google earns money, I used to wonder how Google gives us everything free and doesn’t charge a penny at all, now the truth has been disclosed.

  31. As far as I knew google is not a search Engine. But Search Engine is a part of Google.. Google’s main revenue stream comes from advertisements. And how Facebook is also following Google’s Footprints.

  32. one should start thinking how to earn money as like Google, or to beat Google, not that earn from Googles’ brainchilds….
    but practically everyone is doing it (including me)
    Karthik recently posted..Anyone (blogger) from Hyderabad?My Profile

  33. It is best that google is making unimaginable streams of income and good news is that it is not facing any loss otherwise we bloggers will have to pay for it as Google Adsense is the top Revenue source of income for most of the bloggers.

  34. I don’t know how to earn money by google. anyone teach me?

  35. I follow method of gud living pls show me d way 4 it.(How 2 mak/earn money)

  36. Shaukat Ali Shah

    Is there anybody who send me detail info about blogg & all the other procedure for online earn money. please contact me at email

  37. google earning is a great way..:))

  38. iwant to work in email. please send me details information as soon as.

  39. its nice way to earn money easily, but its very hard to develop and maintain a website , dedication is necessary to earn through websites