Forum Moderators: martinibuster
My questions are:
Does it work out monetarily for you? How well?
Is it "dangerous" as this article I was reading stated? Meaning you could lose money if you do not do it right.
Is it against G's TOS in any way?
Please tell your success or failures with this system and any tips or tricks that will help others as well. Thank you.
It's going to be more difficult, but not impossible, to make money off of adverts that people may have already seen (given your traffic will be coming from similar/same keywords on the same network).
Having said that, if you are very good with ad copy you can gain a financial advantage over others by paying less per click with AdWords, if this financial advantage is used to make a little on arbitrage then you have yourself a little earner. However, if you are that good then there may be better ways to take advantage of the lower bids you are earning.
I use these sites to sell container loads of my niche construction products therefore, for me, I have two bites of the cherry.
One little AdSense bite and one much, much larger and more profitable chunk!
Do I make money from the arbitrage, no, do I make money from my product advertising, emphatically yes.
My ROI with this experiment was about 250%, although I didn't get enough clicks to produce substantial income.
In principle, I could work further in this direction to increase my income, but the only problem was that I felt such an aversion to this project that i had to stop it (I'am always trying to wipe out MFA advertizers from the legitimate site I own). But in general it looks like arbitrage profits are possible.
It works for me. I sell apples and I also advertize other people's apples on my web site, so I get two bites from the same apple.
ArtistMike, so Arbitrage has two different meanings? For instance, you sell apples and advertise apples so you earn money from both things. I also sell apples and earn from apple ads.
Then there is the Arbitrage where you are an advertiser for keywords and also a publisher for same keywords, so you get people to your site through your adwords but you making money when they click on your ads. Am I correct?
Depends a lot why you do the arbitage. I started it to promote a website that also has some adsense on it.
I've lost $40 in 4 months with my arbitage! Although it would have been closer to $200 had I not been grabbing money back with the adsense. I look at it as having my advertising 80% discounted.
The funny thing is you can tell Google how much you are prepared to spend each month, and they'll not bill more than that.
Who is to say what your discount might be. If you are prepared to forget any prospect of repeat visitors you might even turn a profit.
Damn, thought I was the only person on the forum selling apples.
Nope, however I am the only one with cherries declared so far:-)
YMMV
ArtistMike, so Arbitrage has two different meanings? For instance, you sell apples and advertise apples so you earn money from both things. I also sell apples and earn from apple ads.
Then there is the Arbitrage where you are an advertiser for keywords and also a publisher for same keywords, so you get people to your site through your adwords but you making money when they click on your ads. Am I correct?
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Yep. I sell apples (makes me money), I advertize apples (I spend money), I show ads about apples (makes me money).
Pay for cherries with pennies and sell exotic mangoes for $$ . That is the way to arbitrage.
;-)
I am not going to give out secrets in this forum. Just suffices to say :learn from MFA's.. They know all about the subject under discussion. I for one, study their behaviour closely and get valuable tips .. :-)
Use other engines and you will be successful. And noone will accuse you of being a MFA. Isnt it? :)
Arbitrage is really good if you have proper tools and ways to do it. Its like you are living on brim. The day you dont check your stats and dont compare it with what you have spent, you will start loosing.
Do is right, and You cud be earning 14 times you are investing as I do.
Thanks
KeywordCountry
In general, after surfing and researching this for quite a long time, I've come to the conclusion that its profitable but in a very unmeaningful way. We're not talking thousands or even hundreds--but just a few dollars for AdSense.
At the end of the day, the advertiser's ROI is all that matters--and G shouldn't (and probably doesn't have the time) to care so long as the advertisers ROI is still within a reasonable range. Its when the advertisers start pulling their ads or blocking all network sites, that G needs to step in and lay its fist down.
When you're large enough to negotiate a percentage of payout, then you know exactly what you're making on the publishing side.
At that point in time, it's just a matter of doing the math ($per click, CTR, $per click out - of course, tracked at the keyword level).
To think of scale, think about having an API from both sides. Real time data of how much each keyword is costing, how much each keyword is making - and then adjust bids/keyword automatically through an API.
Here's an interesting thread about quality score and arbitrage (lots of good info in there): [webmasterworld.com...]