Internet Business Daily

Just like everyone else, I had to try my hand at PPC arbitraging. Basically what PPC arbitraging is, is people buying cheap traffic from a service like google adwords and sending them to a page with much higher paying CPC, CPA, or even CPM ads. There are many different implementations of arbitraging. I will explain exactly how I did it but if you want to know other ways, the best thing to do is read webmaster forums.

The first time I heard about PPC arbitraging was from John Chow’s article on how Google is punishing arbitragers. This is not a good first impression. For those who don’t know, let me explain exactly how arbitraging works. An arbitrager will choose a niche market, such as keyboards or dog grooming. The next step is to sign up for an advertising service and get high paying ads. I chose to use the CPA (cost per acquisition) model. This means every time someone enters a piece of information, I get paid. I chose to use Azoogle to give me ads.

So here is how it works. I used adwords to buy cheap traffic (max 10 cents each click), and sent them to a full page ad (example: kingdomcomelyrics.com) that pays $15 per acquisition. Here is what the adwords ad looks like:

This would generate as much traffic as I am willing to pay for. I set the max CPC (cost per click) to 10 cents and a $5 per day spending limit. At this rate, you can figure that about 75 clicks is going to be $5. So now you have very cheap traffic to your ad page. Out of these 75 people, if just one of them enters their information into the ad, you already tripled what you spent. It is not as easy as it sounds however, I have only had minimal success. To maximize success, people have told me much research is required. You have to be able to find a niche market that no one else is using. Deciding keywords to use with adwords, and which ad will best suit this traffic is the hardest part of it all. Here is what the arbitrage page looks like:

Let’s look at some numbers. Most ads wont be paying you $15 CPA, it was only because a user had to enter their cell phone number and confirm it that it was worth so much. Let’s say that instead of $15 CPA for a confirmed number, a company will pay you $1.50 for an unconfirmed email address. So we will pay $5 for 75 clicks at about 5 or 10 cents per click. Only 4 people need to enter their email address, which doesn’t actually need to be valid for you to make money.

This is just one way of doing arbitraging. Another popular way is to setup scrapper sites. A scrapper site is a webpage full of ads, with automatically generated content. Then people put adsense ads on the page and buy cheap traffic and send it to higher paying ads. There are many more ways of doing this and I suggest you do much research before trying it.