Can someone explain how google Adsense works? Cost, productivity, success rates?

[Israel]

I am starting a small online social network for outdoor enthusiasts. I don't know ANYTHING about how google Adsense works and i'm in charge of the financial side of our small business idea. It seems like it doesn't cost anything to use it so that is not my concern but i would like to know basically how much money we would be making a month off of it with our new website. Thanks!

[Jake]

Brief basics:

You pick the ad unit configuration and placement, Google populates them with ads that best match the content of your site, ad publishers can hand pick the sites as well. Adsense has a relatively high $100 min paying, you should assume it will take tens of thousands of visitors to earn that, the actually earnings vary depending on the subject matter of site. In the U.S. they pay by check or bank deposit. Accounts routinely get shut down if evidence of click fraud is found. There is no sign up fee.

[Social]

I make between $100 and $200 a month. A small niche with not alot of competition helps out. Try to have all your ads above the fold so people can see without scrolling down. Also having a site focused on one topic as opposed to a site that talks about anythign and everything will make you earn more money.