How does Google Adsense pays us?

I have learned from this website, http://freesitetraffic.org, that the formula on how to monetize a site was: traffic x conversion x price = earnings. Traffic refers to the number of page views. Conversion is the number of clicks and Price refers to the CPC. I register my site at Google adsense but I as read the terms and condition, I have learned that they only pay for the number of people who click on ads. Is my source website giving a fake information?