Arbitrage from a Non-Arbitrageur

The best way to know if this system works, is to actually test. And this is something I'm going to do.. Infact I came over an ebook on arbitrage, this article above has really drawn up my curiosity this time!
Once the blog setup.. I will monitor the traffic..etc
In due time, I will conclude about my observations on my blog..

- Wakish -

Most of my experience with arbitrage is just in actual product- the old Buy Low, Sell High with physical products. I haven't done too much in the way of arbitrage with website traffic/ads. Again I prefer to convert buyers of products- only this way its products I don't personally handle.

I know a lot of people on a lot of sites and forums that do MFA and use PPC arbitrage at low margins and are happy making $1 a day in Adsense over ppc costs. However, I prefer selling things for $50-100 and up that convert highly targeted traffic ( or things I could buy for say $50 and sell for $100 with little expense) rather than accumulating pennies.

That said, 'arbitraging" to affiliates might be a little better than how most do with CPC. I know of people who make real money on fairly low CPA programs with all paid traffic. In this sense a lot of Affiliate Marketing could be considered arbitrage- though i'm not sure I'd call it that. And I certainly dont see converting natural traffic into earnings as arbitrage.

kool advice. thanks for the affiliate program. i plan on using it.

Set up a quick site with scraped, 0% original content, then embark on a campaign to convert AdWords traffic into AdSense clicks and affiliate commissions. Congratulations, you have written an excellent tutorial on how to set up an MFA site, with zero good intentions of creating something that provides genuine value to the visitor.

Excelent post!
And please, Mr. Jones, what about this...
Why not to buy 10000 clicks for $0.01 per click?

Use excelent copywriting techniques, choose best affiliate programs in the industry, reach 3% conversion rate and $100 affiliate commission - it means $10.000 profit every day, $300.000 profit per month, $3.600.000 for year! And listen, if you just set it and forget it, how many websites like this can you own? 100? 1000? WOW! :-)

Do you think, it is stupid idea? Yes, it is. Same like your whole article. :-)

Why do you mislead people who are looking for quality information how to make living on the Net? Do you know, that some new people here can use your "idea" and will spend time and money on it? Did you even realize, what loss and flustration it can bring to their lives?

AND please, WHY you as Non - Arbitrageur are writing an article about Arbitrage???

So please, next time, if you will have another excellent idea, please, try it first and then share with us your results.

This post is good as far as helping beginners THINK about ways to make money online. However, it is another perfect example of why there is NO SUCH THING as a simple, step by step method to making real money online. If a method really is that simple, and is laid out step by step for a large number of people to see, then that method becomes unprofitable (you may be able to eek out a couple bucks a month in some cases). However, if you can INNOVATE and put your own twist or own ideas into the method, and yes that means actually THINK and put in EFFORT, you may be able to take what is laid out in this post and make some money afterall.

Highly unrealistic and impractical post. You will NEVER EVER get 500 visitors a day for $10. I hope no newbies fall for it.

Arbitrage used to work well before the google smart pricing kicked it.
I used to have a wedding related website that made about $200/day profit for about 2 years.
I would bring in about 2k visitors in with spending about $60/day on adwords, then have them look at some pictures, read related articles and click on my adsense ads.
Now getting cheap traffic is much harder. Adwords is bringing me traffic in at 20 cents/click. The messed up part is that they say my site is not relevant to the keyword that I am placing the ad for, but at the same time, I am ranked #3 on google's natural search ranking for that specific keyword.

Nice very nice .... A million thanks for the details... thanks

Great plugins i use most of them and can tell that they reall yhelp in getting higher listing in search engines.

On my reckoning if you get around 2% you are lucky. You can not just set it up and forget it either. A lot of work is needed to be done which will eat into your time which can be made better use of.

A million thanks for the details. I think University of John Chow should be established. It must have internet, blogging syllabuses etc...

What do you think? :twisted:

This isn't arbitrage, it's affiliate marketing, plain and simple. The first two sentences define it correctly "Arbitrage is a form of taking advantage of a price differential between two or more markets. An example online is buying traffic at one price and then converting that traffic to a higher click value." It involves like-kind buying and selling, not buying PPC traffic to sell affiliate products.

Why would a hosting company wite about these spam sites and not even know an about CTR? Quick search on Google would have told you.

Anyone following that little plan will fail, thats for sure - copying other peoples wii content is just wrong too. Suprised John let you post that!

$14k a year from one wii site, um no. If you make 10% of that you're doing super well. Set up another 100 of them all performing well and then maybe.

Shoudl have just stuck with John ads for the $10 deal, is a more blatent advert, but better than a half assed post.

Interesting concept, I am setting up a test to see how this works.

I know of companies that have literally made fortunes off of arbitrage like you talk of. It can be very profitable, you just have to find the right niche.

This is not arbitrage at all and seeing how your post title is "Arbitrage from a Non-Arbitrageur" I hope noone really listens to it.

The art of Arbitrage is buying low and selling high, but a 1% CTR is WAYYYYY Too low. I do CPC arbitrage and hit 30-40% CTR on my keywords. paying 2-5 cents per click and making 0.50-1.00 per click in adsense. I had wrote the ebook www.earnwitharbitrage.com but have recently sold the rights to it. I detail exactly how to make money in the book.

Ar...arb....arrbit....arbitrageur.. Arbitrageur!
You can make it so simple but I is it really that easy? :neutral:

With a blog so huge, of course someone is going to take that Wii domain. If this post had a backlink, he would have visitors quick :)

Anyways, this is a great post Gary.

-Mike

This is not for me thank you very much. Are you into in John or are you preaching what you don't practice? :wink:

Sounds like the Google Cash method for blogs.

It's just a basic PPC strategy. You gotta be a little more creative to make money in PPC these days. Research and tracking and split testing and ............

1) You are telling people to scrape content from other sites to fill your site. that is plain wrong.

2) Arbitrage on Wii? How can you make any money on it if people can not buy it? No one has them!

3) You can't write very well.

Thanks for plugin list! :smile:

i mean, in the west but not in the orient.

mmmm.. well it might be gone in the west but in the orient.. let me try this one..:) like how uber did prior to his launching.. :mrgreen:

Does anyone know if Adword arbitrage is considered a violation of Google TOS?

Hmm...I thought Google Adsense frowned on this practice...maybe I'm wrong

It wasn't shoemoney that took adv. of facebook, it was Uber Affiliate... he just guest posted it on shoemoney.

I know arbitrageurs making 6 figures a month with much of their income coming from buying clicks in the 1 to 3 cent range.. it can still be done, you just need to know how to do it.

Get traffic, buy traffic, get traffic. How it sounds so easy :oops:

Triple post, sorry, but I have a question.

Gary, is BlueFur accepting webmasters who want to set up arbitrage sites? It's usually not very long before someone complains to the site host about the poor quality of those sites, the stolen content, etc..etc... If BlueFur is accepting such sites and will ignore complaints, you've got a long list of ready customers I think.

Specifics:
- 1 cent clicks from facebook? not since 8 hours into the first day the program launched, actually shoemoney helped close that down by abusing it to an extreme degree. Kudos to facebook for shutting him down in record time.

- 5 cent clicks on adwords? perhaps for the top 1% of the elite top quality sites but not for any insta created arbitrage sites.

- 500 visitors a day? Try 5 to 10 and none of them will come back.

I'm not bashing Gary but the recipe described has been long gone for years. Webmasters have covered all of the grounds, there are no secrets, and advertisers got wise and cut into those massive profit ideas a long time ago. You can still make money with arbitrage, but you'll earn it and it won't be massive amounts or easy and when labeled as an arbitrageur you may not get out of the black lists for years even on your quality sites.

Now thats a perfect recipe for ruining the internet for everyone.

When the percentage of arbitrage sites on the web goes up, the amount of advertising dollars available to spread around don't go up to match it, instead they go down or head to only proven, non spam promoting webmasters.

Quality affiliate programs are about to get harder to get into, arbitrage is just one of the reasons why. You've been warned.

Great post Gary becareful with traffic quality with higher quality traffic you will get paid out more, try to aim for 50-200% ROI or it's just a waste of time!

Affiliate arbitrage can sometimes reach phenomenal CTR's, but this is throuh a LOT of testing and a LOT of clever thinking; i.e. finding original keywords and tricky ways to attract interest.

If anyone's interested in learning about some of the bigger concepts of arbitrage, check out http://www.uberaffiliate.com . Paul has some GREAT insights and gives the reader an inside look at his 'super affiliate' gameplans. Why he's giving out so much information, I don't know, but it's all worth a read. Even a non-arbitrager like myself has picked up a few things.

I use to make pretty good money (over 10k a month) with arbitrage, but 3 times I received the MIGHTY Google SLAP and my income went to next to nothing. Each time I was able to build it back up again, except this last time (about a month ago) it does not seem to be working too well. I have decided to pursue other avenues now.

Interesting article, but what are the legalities in regards to using other sites RSS feeds as content? That hurts other sites too because of duplicate content on Google right? Isn't this something a lot of the bigger bloggers hate because their content is getting stolen?

I'm with Marvin - Arbitrage sounds EXACTLY like affiliate marketing.

What's the difference?

Is Arbitrage when you use a CPC offer on your site? So you are paying (for example) $0.05 in Adwords per click, but receiving $0.15 from your CPC offer per click, thus earning a sliver of money?

Seems to me that this is just affiliate marketing with insanely smaller margins, more risk, etc.

Someone, please, clue me in.

Gary explained the concepts well. No reason to bash the guy. I agree that traffic is the hardest part here. Buying would be the best option but the CPC is a bit unrealistic.

This wasn't a post about arbitrage...it was more like a post to get you to buy a website and hosting from bluefur, by convincing you how to make a quick buck, obviously it worked, WiiFunWorld.com was boughten :grin: