Most people understand at least the basic concept of PPC advertising but arbitrage is a little bit different. It’s not one of the most popular topics of discussion either, but that’s mainly due to the fact that most people don’t understand it. Plus, it’s a little bit scary. But you can make some darn good money online with pay per click arbitrage once you understand what it is.
Before you can understand what pay per click arbitrage is, you need to understand arbitrage. Basically, arbitrage is simply buying something at a low cost from one party and selling it, at a higher price, to another party. In the case of pay per click arbitrage it means buying clicks from one source and using that traffic to generate higher paying clicks. The difference between what you pay for the traffic and what you make from the clicks that traffic generates is your profit.
One of the reasons you don’t see many discussions on this topic is because it generally involves using Google Adsense and arbitrage violates their TOS. It’s not nice to buy traffic and send them to click on your Adsense ads. So it’s a little risky. But if you do it right you can make a lot of money.
Before you get started you’ll need to do some hefty research. You want to look for keywords that you can buy on the cheap at Adwords, like for around 5 or 10 cents. Then go to Adwords and buy you clicks.
Now, you’ll want to find another advertising service where you can get relevant ads with higher paying clicks and set up a website to hold those ads.
What you’re going to be doing is paying a low price for your Adsense clicks and sending that traffic to your website where they can click on your higher paying ads.
Now, if you do this in reverse, sending traffic from another source to click on your Adsense ads, that’s where you’ll run into trouble with Google. That’s why it’s important to do your research. Get the lower priced clicks at Google and send the traffic to another advertiser.
In order to get a better click through rate so you can recoup your investment and make a profit, you’re going to have to have tightly targeted content on your website. You’re going to be sending traffic from your sponsored ads and when they arrive on the page they’re going to be expecting to find relevant information. Otherwise, they’re just going to click away. And chances are they’ll do it before they notice your ads.
You’re also going to have to find relevant keywords from both advertisers. For example, if you buy the keyword ‘skittles candy’ from Adwords then you’ll want to have relevant, higher paying ads on your website. If your visitors are looking for Skittles, they’re not going to click on an ad for Snickers bars.
Working with Google Adwords is tricky in the beginning. You want to find keywords that have a high number of searches but those are usually the most expensive. Obviously, if you can find them with little competition, you’ll get them at a much better price.
What’s the difference between pay per click arbitrage and affiliate marketing, then? It sounds like you’re doing the exact same thing – you’re paying for ads to drive traffic to your website and you want them to click on your higher paying ads when they get there.
It’s really the same method. But the difference is that not many affiliate offers have a pay-per-click pay-off. Generally, you’ll need to get the reader to complete some type of action – submitting their email address or taking a survey, etc. That takes a little more polish and effort on your part. If you can find a good affiliate offer that only requires the reader to click through and you get paid, then check to see how much you’ll make per click.
You should understand that making money online with pay per click arbitrage isn’t for the weak of heart. Nor can you be one of those lazy, disorganized marketers who never checks stats. When you start paying for Adwords you have to stay on top of everything – your clicks, your cost per click, your click throughs on your ad – everything. And split testing is crucial. But once you get the hang of it, it’s addictive! If you’re looking for something a little more challenging and rewarding, do your research and give it a try.