The difference between Google Adsense and Google Adwords:
 

  These two terms are totally different from eachother and usually misunderstood or misused by beginners. Let`s explain the difference:

Google Adwords is the ad marketing tool used by advertisers.
Google Adsense is the income generating tool used by website owners to publish Google ads on their websites.

Google Adsense 101

  As we explained the difference between Google Adsense and Adwords, the application process for these programs are different.
  The application for Google Adwords is very easy and anybody who provides the personal and billing information can start using Google Adwords in 10 minutes. Google Adwords application does not require a website address and approval.
On the other hand Google Adsense application needs to be reviewed and approved by Google and requires a website address.
  The second step after approval is to place the code on your website. Google will assign you a publisher id which starts with pub-.... . In the Google adsense setup section you can choose the ad type that you want to use on your website, such as image, text or video ads. After choosing other features such as text color etc. Google will provide you a javascript code which includes your publisher id. Copy and paste this code to the pages that you want to publish Google ads on your website. Google allows maximum 3 ad blocks on one web page. I would recommend to place ads on all pages except contact, about us, disclaimer,privacy terms, terms of use pages.
  Now you are ready to make money with Google Adsense. The adsense income will depend on the traffic and the topic of your website. Income will depend on the topic of your website too because Google determines a different value for each click, for example financial terms such as mortgage, loan, credit card etc. are the most expensive terms because the competition is very high and advertisers are willing to pay more.