In a nutshell:
Adwords are advertisement for your business. They are definitely worth looking into if you are wanting to utilize SEM (Search Engine Marketing). As with almost all good advertising, it comes with a price. You definitely want to get your website established, and get your market research done before delving in to a powerful tool like Ad Words.
Adsense is an account that you setup and get code to put into your website to display little ads (from those people who use Adwords) of related content on your site, and then you get a little money for it each time someone clicks on your Google ads. But Beware: Do Not Click On Your Own Links. Google will know. Visit this post at darkbluesun.com for even more information about Adsense: Making Cents of Adsense
Webmaster Tools include:
Site configuration
Submit sitemaps, verify a crawler has access to search and index your site, and other settings here.
Your site on the web
Top search queries (what did someone have to type in to bring up your site in a search), Links to your site (which sites are linking to you), Keywords (the ones found most on your page) , Internal links (which sites are you linking to from your pages)
Diagnostics
Crawl errors (which you want to get fixed so google will visit you.), Crawl stats (the last time a Googlebot visited you), give HTML suggestions if your site code needs to be reexamined.
Labs allow you to fetch site info as a Googlebot and give malware details
Other search engine's Webmaster Tools:
You will also need to create accounts and submit your website to use these tools.Bing Webmaster Tools(Similar to Google's webmaster tools minus a few features.)
Yahoo Site Tools (Yahoo is definitely the most thorough search engine when it comes to finding all of the sites that link back to you.)
Google Analytics measures how much traffic your website gets. And traffic monitoring conveniently leads me to my next tool.
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