Monetizing the blog.

I have been working on my blog to monetize and make minimum of 10 US$ per day.  I have been modifying layout of my blog to attract more traffic but no luck.  It is well above my head how Google payout  for the adds.  I understood adsense this way

1.  More number visits pays more money

2.  All clicks on ads pays money

But the results did not match. I do not know what formula does google follow to pay.  I tried understanding the formula from adsense website but it was kind complex.  

I am not criticizing Google, but trying to understand it.

I feel the highest paying ads will be displayed on the blogs with the following key words. It is purely my opinion and there is no scientific explanation for it.

1.mortgage

2.makeup

3.porn

4.sex

5.medication

6.autos

etc.

Hope someone understand Google's payout policy and explain's it to all.

Thank you.

Murthy