How does Google Adsense Work?

Google Adsense:

Google AdSense is a free, simple way for website publishers of all sizes to earn money by displaying targeted Google ads on their websites. AdSense also lets you provide Google search to your site users, while earning money by displaying Google ads on the search results pages.

Where to show the ads?

You can place the ads anywhere on your webpage and what kind of ads you want to show in web page. Adsense strictly prohibits displaying ads on porn websites.

How do you earn through google adsense?

Google adsense pays you under two circumstances

i) for clicks on ads

ii) for page impression

Clicks on ads should be valid and legitimate and it should not intentionally done. It is a simple task for google to find it out if you try to cheap tricks by clicking yourself. This technique will not work with google for longterm. 

Clicks should be made my valid visitors and it is determined by lot of parameters inside your google adsense account which you see. 

Page impression payments differs depending upon the number of page views and as well as the kind of the ads that is displayed on your website. For example, if you are having 3000 visitors to your website, some might earn 30$ a day and other might earn 10$ a day or less or greater than that. It is unpredictable with google adsense. 

Google makes out payment when the threshold limit is attained (i.e) 100$ and every month your payment is finalized. 

Google had made arrangement to retire the adsense for feeds product and it will continue to run for other products.