There's a lot of ways to complicate making money with Google AdSense, but if you adhere to some basic principles, you will realize a great income from this site monetization model.
The first thing you should realize is that Google as a search engine and also a business. They are in the business of provide their advertisers with quality sites to advertise on, and they also want to provide relevant search results when certain items are being searched for.
Therefore they want to provide their search engines users and advertisers with top-notch and relevant results, and the way they do this is by ranking the best sites according to their alogrithms for ranking websites. If you keep this all-important principle in mind when building sites, you will do well for rankings by giving Google and the other search engines what it wants, and needs; good quality content.
Step 1 is to pick a niche that would be good for AdSense monetization and this is no different from picking any other type of niche. Find a niche where people are spending money and provide relevant good content on your sites. However; with AdSense sites you need to also consider if the niche is an "AdSense-friendly niche", meaning that this particular target audience is prone to clicking on advertisements. Some niches are not conducive to click-happy site visitors.
Step 2 is to provide good quality content on your sites and make sure it is unique content. I have well over a dozen AdSense sites and the ones that get the highest daily impressions are the ones with unique content on them. So make sure you publish unique content on these sites targeting keywords relevant to your site topic and theme.
Step 3 is to increase your traffic so you have enough visitors coming to the site via organic searches. The reason you want a good amount of traffic prior to putting AdSense ad units on your site is to enable you to have enough of a basis for testing your ad placements. Without a decent amount of incoming traffic, you cannot test new ad placements properly.
Step 4 is to test and tweak your AdSense ad placement and colors to see what arrangement results in the highest CTR (Click Through Rates). Testing and tweaking your color and placements takes time but is well worth the effort because a few simple changes can easily double or triple your AdSense income.
Step 5 is to start doing some link building by using a link building service or by obtaining links manually. Link building is a bit of an art form and isn't just a matter of getting as many links as you can to your sites. There are certain ways to do link building that won't hurt your sites, but link building should be done after your sites have aged a little bit.
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