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what exactly does "cpc" mean and why is it so important?

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I keep reading about "cpc" being important, but other than cost per click, I'm not sure why this is important.

If I find a domain whos keyword is say £5 cpc, what does that mean?
 
The theory is that if you have a domain which is highly relevant for a topic which has a CPC of £5... you will be able to make some significant ad revenues if you utilise Adsense on the website.

This is of course assuming you can drive traffic to the site which you create.
 
ah, adsense is where you add adverts to your site isn't it?

so going back to my example cpc of £5, does this mean that everyone who clicks on an ad on my site makes me £5?

No, that can't be right?
 
Cost per click (CPC) is the amount of money an advertiser pays. so in theory yes, every time a user clicks on one of these ads you will get a % of the £5,
What topic/niche is it if you dont mind me asking?
Thanks

Note the use of IN THEORY ! you dont always get the amount
 
Cost per click (CPC) is the amount of money an advertiser pays. so in theory yes, every time a user clicks on one of these ads you will get a % of the £5,
What topic/niche is it if you dont mind me asking?
Thanks

Note the use of IN THEORY ! you dont always get the amount

ok, im gonna be really thick here, but whats to stop me getting a load of people to simply click on the ads on my site?
Course, I wouldnt do that, I'm just curious as to this system
 
is there still big groups out there that all give eachother a click a day?
few years ago now i heard of a massive group with thousands of members that gave eachother a click a day
 
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