management by matrices

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Google's Adsense Income - Is there a conspiracy?

Google Adsense follows a policy of making payouts only when a user's earnings reach $100. Now, assume that Adsense (like everything else) follows a 80-20 rule i.e 20% of users make 80% of the revenue.

In other words, 80% of Adsense users would be making close to nothing. Assume that the average earnings of these users is about $50. Assume that Adsense has 10 million users.

Adsense users = 10 Million
80% of that = 8 Million
Average earnings of these 8 Million = $50
Total unpaid earnings = $400 Million (!!!)

Lets do some conservative math now
Adsense has 5 million users : $200 Million in unpaid revenues
Adsense has 1 million users: $40 Million unpaid
Adsense has only 500000 users: $20 Million unpaid
These are still large enough numbers to make us want to question what is going on.

Thus, Google could potentially be holding about $400 Million in cash that they probably never will payout because 80% of its users (like me) will never get enough hits to make $100 any time in the near future. Is this a deliberate strategy? Wonder if Google's earnings statements reflect these numbers, but I'm too lazy to check that out!

The least Google should do is to at least payout interest income to these users in addition to what they have already earned.

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  1. Neo


    good analysis.
    never thought of this.


    6:13 PM
  2. Tech at Hand


    I think that is what we called life. They have the power to that..Unlike other which has only 50$ ... But it was a very good analysis my friend.

    12:21 PM