Adsense is the revenue-earning portion of Googles advertising program that allows webmasters to display ads of Google advertisers on their web pages. The webmaster (you) would earn money every time someone clicks on an ad.

To monetize your website with Adsense, you would sign up for an Adsense account, at which point you could begin placing Google ads on your site. The ads displayed will be relative to the existing content on your pages.

Although the earnings per click is usually very small, usually less than 50 cents, Google Adsense is an appealing option to webmasters because revenue is only a click away and its much easier to acquire clicks than it is to produce a sale.

Google Adsense is how you can monetize your site when people are not spending money in your market.

Webmasters who use Adsense as a revenue source, rely heavily on free search engine traffic as a source for Adsense clicks. This approach requires a lot of search engine optimized pages to earn the recognition of the search engines.

Which monetization is best for you? As a rule of thumb, which ever approach sounds more appealing to you is probably the right one for you. Although you are not limited to any one, its best to start with one and explore others later.