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Basically, here’s how pay per click arbitrage works:
1) You set up a website with several articles as well as a prominently displayed Google Adsense ad. As you probably know, Google shares the advertising revenue with webmasters if someone clicks on the ad from your website. The amount that Google pays you is largely dependent on the category and number of advertisers. For example, an ad related to Mesothelioma, may pay $50+ per click!
2) Next, you drive visitors to your website by advertising on second tier ppc search engines such as 7search.com, searchfeed.com, goclick.com, or adbrite.com. You upload keywords related to your website to these ppc search engines. Hopefully, you are paying only .05 - .10 cents per click.
3) Now, it’s simply a number game. Let’s assume for every 100 people that visit your Mesothelioma site, 1% click your ad and you make $50. It costs you .05×100= $5 to drive those 100 visitors to your site. That meaans you are making a profit of $95 for every 100 visitors.
Of course, you may only get paid $10/click if you have a category such as “business loans.” However, if you can drive 500 visitors to your site at .05 cents per click, that means you are spending $25, but Google will pay you $50 for those 5 clicks assuming a 1% conversion rate.
I'm Josh, author of ScrappyBusiness.com.
I've traveling for the past 3 years all around the world, using 3rd world internet connections to run my Affiliate Marketing business.
"Even so, I have noticed one thing, at least, that is good. It is good for people to eat well, drink a good glass of wine, and enjoy their work--whatever they do under the sun--for however long God lets them live.
And it is a good thing to receive wealth from God and the good health to enjoy it. To enjoy your work and accept your lot in life--that is indeed a gift from God.
People who do this rarely look with sorrow on the past, for God has given them reasons for joy.
-Ecclesiastes 5:18
November 25th, 2006 at 10:31 pm
Josh,
How does arbitrage work? Explain please!
November 25th, 2006 at 11:21 pm
Hi Brian :)
Basically, here’s how pay per click arbitrage works:
1) You set up a website with several articles as well as a prominently displayed Google Adsense ad. As you probably know, Google shares the advertising revenue with webmasters if someone clicks on the ad from your website. The amount that Google pays you is largely dependent on the category and number of advertisers. For example, an ad related to Mesothelioma, may pay $50+ per click!
2) Next, you drive visitors to your website by advertising on second tier ppc search engines such as 7search.com, searchfeed.com, goclick.com, or adbrite.com. You upload keywords related to your website to these ppc search engines. Hopefully, you are paying only .05 - .10 cents per click.
3) Now, it’s simply a number game. Let’s assume for every 100 people that visit your Mesothelioma site, 1% click your ad and you make $50. It costs you .05×100= $5 to drive those 100 visitors to your site. That meaans you are making a profit of $95 for every 100 visitors.
Of course, you may only get paid $10/click if you have a category such as “business loans.” However, if you can drive 500 visitors to your site at .05 cents per click, that means you are spending $25, but Google will pay you $50 for those 5 clicks assuming a 1% conversion rate.
Welcome to the world of search arbitrage :)