Ola Gene.
The script you put on your website produces Google Adsense ads. In it's very simplistic terms - Adsense is
contextual advertising, that's to say if you write about wheelbarrows, then adverts about wheelbarrows will appear - as long as someone selling wheelbarrows has advertised with Google.
If a visitor to your website clicks on one of the ads, then the adevertiser who placed the ad gets paid by Google - but so does the website where the advert appears - i.e.
your website! :)
Different topics/subjects will get you a higher payment for every time someone clicks on them. (Go here:
Google Adsense Top Paying Keywords for some guidance on subjects, and which
pays out better).
General blogs can rate well in the general Google search engine, but do less well with Adsense because the subject matter is constantly changing. However, blogs on a specific subject can do well. For example
Radio 2 Radio is a hobby blog on ham and amateur radio, but does quite well for itself with Google Adsense.
If you are into Adsense for making money only, then you may well be accused of producing
Made For Adsense websites, i.e. websites where SEO is used specifically to draw traffic to webpages for people to click on links. But if you want to use Adsense as part of your website to gain extra revenue, then you'll be happily accepted into the mainstream
Adsense Communities :)