What is PPC Arbitrage?
Arbitrage is defined as “Attempting to profit by exploiting price differences of identical or similar financial instruments.” Traditionally, arbitrage was used in the financial industry as a trading strategy. Basically, it simply means to profit from market opportunities.
A market opportunity could be as simple as finding a good deal on dell 500 GB hard drives, and then turning around and selling them on Ebay.
The two most profitable types of online arbitrage are:
- PPC Arbitrage - Setting up a website with nothing but ads then buying PPC traffic to send to the site with the ads.
If you pay Google 0.15 cents per click, and you make an average of 0.30 cents per click, you now have a profitable arbitrage opportunity.
- PPC to Affiliate Arbitrage - Buying PPC ads and sending the visitors to a targeted landing page for an affiliate offer.
In essence, any business profits from an arbitrage opportunity. Since the internet is relatively new and most marketing opportunities are still untapped, there represents huge opportunities for gain. In fact, it’s rumored some affiliates have built their entire business using search engine arbitrage.
February 19th, 2008 at 1:52 pm
[...] blogged about arbitrage in the past, but I’ve decided to re-open the issue of the mass amounts of arbitrage sites on the Google [...]
February 22nd, 2008 at 9:53 am
Hi Joshua,
I’m here from Shoemoney.com - you sound quite interesting, have backpacked across the world.. doing something different with your life!
I was curious as to what arbitrage meant, and i’m very appreciative of this clear and concise video. Thank you very much. I expect I will be around some more in the future, after subscribing to your RSS feed.
It is some good video software too!
March 4th, 2008 at 8:41 pm
Great post! Don’t forget to mention that incubeta founded by Vinny Vingam was founded purely on direct linking ppc arbitrage, in fact that’s there major business model to this day under clicks2customers.com.