Posts Tagged ‘Arbitrage.’
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There seems to be a lot of questions and confusion about Adsense arbitrage. It has been made out to be a ‘bad thing’ and people have become weary to adopt the technique as an online business. There are also those who say that sending traffic to affiliate links is much more profitable than Adsense arbitrage to know more go to www.guardadsense.com. Lastly there are those who believe that Adsense arbitrage is easy money just waiting to be picked up. What is Adsense Arbitrage?
Adsense Arbitrage is buying traffic (PPC) from search engines at a low cost and selling the traffic to an advertiser at higher price.
Here is how you go about achieving this:
You identify keywords in a niche market with a low cost per-click. You direct the visitor to your landing page where your ads are. The visitor clicks on your ads which pay more than the ones you bought hence your profit is the difference between the two.
Is Adsense arbitrage a bad thing?
Firstly Adsense arbitrage is a legal way of making money online; there is nothing black hat about the concept. The problem occurred with the misuse of Adsense arbitrage, and just like the word alchemy (which for all realistic purposes means nothing more than chemistry, and was the term used for chemistry in the early middle ages) now has an occult or wizardry connotation to it. The bad name came about with the advent of the made for Adsense websites. As their popularity as a form of online income increased, sales of ready made Adsense websites went through the roof and the quality of many of these sites were bad, to say the least. Content on many of the pages was nothing more that a few words, if that much.
The focus was on getting people to click the ads on the page, without giving them any other alternative. With the focus squarely on the click there was no thought for the adwords advertiser, all he should do is fork out money for the Adsense website owner’s pocket.
The net result of this is that the first warning you read in most information ebooks on adwords is not to advertise on the Google content network. Why is this? It became totally untargeted traffic which was of no use and worth zero profit for the advertiser. So away went loads of cash from the content network.
Is this still the case?
In broad terms no, there is still some of it around but after Google’s slap and changing the way in which it gave quality score to landing pages from adword ads it was clear that this practice has gone out the window, and if you still want to do it be ready to hand over some serious cash for every click.
To quote Google directly from their page:
‘Quality Score is the basis for measuring the quality and relevance of your ads and determining your minimum CPC bid for Google and the search network. This score is determined by your keyword’s click through rate (CTR) on Google, and the relevance of your ad text, keyword, and landing page.’
This means everything has to be relevant and Google will check it. End of story.
Sending traffic to affiliate links, sales pages, does bring in sales. But in many cases the sales made on the first visit to a page are very low. So if you are sending traffic directly to your sales page without getting email details for follow up your ROI will be very low. Unless you get a subscription or offer a quality bonus for buying through your link it does not make a lot of financial sense. This is why Adsense arbitrage is a good option to follow if you are not well acquainted with writing squeeze pages or creating bonus products for your affiliate products for more details you can login to www.instant-adsense-dollars.com.
For those who think making money with Adsense arbitrage is easy, think again. Yes it is a constant inflow of cash, but you are paying for that cash, and if you are paying more for your click that what you are getting paid you will have some serious cash flow problems to cope with.
A good knowledge of Adsense, adwords and the right business model is essential for your success with Adsense arbitrage.
www.adsense-dollar-factory.com
www.adsense-income-exposed.com
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A lot of people get all worked up about Google Advertising arbitrage. Arbitrage is simply buying something in a market and selling it in a market at a higher price. Traditionally, arbitrage is completed with financial instruments like currencies or futures contracts. Often this involves buying currency in one area of the world and selling it for a small percentage gain in another part of the world. If you can buy $100 worth of a currency in London for $100 and instantly sell it in Hong Kong for $100.75, you would be wise to buy and sell as much as you could while the arbitrage opportunity existed. I was visiting my sister-in-law one day at a large Asian bank about ten years ago. While I was there several young traders came out of the foreign exchange office celebrating the fact that they had netted a million dollar profit in one day for the first time. Arbitrage is part of business.Google arbitrage is nothing new, it’s just advertising arbitrage. We all know that radio stations, TV stations, newspapers, and magazines all earn their revenue from advertising sales. We also see newspapers advertising on TV. radio stations advertising on bus stops, magazines advertising on TV, etc. These media channels are buying advertising so that they can sell more advertising in other words they are doing advertising arbitrage.With Google arbitrage, traffic is purchased as Google Adwords traffic and then sold as Google Adsense traffic at a higher eCPM. Google has no problem with this as long as you abide by the Terms of Service (TOS) of both Adwords and Adsense. To abide Adwords TOS you need high quality landing page content and ads that are representitive. Typically, the quality of your ads and content will not get you banned but minimum bids can rise to $5 or even $10 per click. To abide by Adsense TOS you need to have good content, need to avoid fraudulent clicks, can’t encourage visitors to click on your ads, and a number of other things most of know out of common sense.The ultimate arguement in this discussion comes from Google. Google has always pushed Adsense users to use all of Google’s tools including Adwords. The Adsense log out screen has a link to Adwords. You will note that Google encourages Adsense users to “Drive traffic to your site with Google Adwords. Google is encouraging arbitrage.Made for Adsense (MFA) pages are often discussed. These are pages that more appropriately should be called content free sites as many high quality sites were made with advertising in mind including the Google search page. Content free pages would include many of the pages you see that have “What you need when you need it” (WYNWYNI) as a motto that show nothing but several blocks of Adsense ads and links to more WYNWYNI pages. These content free pages are what people inappropriately call MFA as both good and bad sites can be made for Adsense.I agree that Google should weed out the WYNWYNI pages. I disagree that arbitrage should ever be discouraged as arbitrage is a healthy natural part of business and arbitrage is what forces markets to be efficient.
Tom Barr is a southern California based web developer and site owner of properties including www.salarymap.com.
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