Arbitrage from a Non-Arbitrageur

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. Traditional Arbitrageur’s online use strictly CPC to make money, as a Non-Arbitrageur I would use affiliate marketing instead to maximize revenue.

So how do you get started?
Being an arbitrage is much easier then you think. You don’t need to have a big bank roll to get started. Actually most get started in small scale and grow as they make money.

So step one is to pick a niche. I like my wii so for this example I am going to niche my site on wii games and accessories. I am going to use the high paying affiliate links to make money in that niche.

Selecting a domain and hosting. Every good niche site should have it’s own domain. So for this site I will buy the domain (yes I know it’s not owned) and purchase a great deal on hosting for a blog. The reason I would use a blog is they are easy to manage and there are tons of free themes. I can get a new blog site online in less then 24 hours.

Setting up your blog to get content. People don’t click on your page unless there is some content. To get some content I would use a digest of other wii news related sites that have an RSS and pull the content in with the FeedWordPress plugin. I would also be sure to have the All in One SEO Pack and WordPress Affiliate Pro Plugin installed in my blog.

Getting traffic to my site. This can be the most difficult part of any site. You can buy traffic cheap from several places like Google or now even Facebook. Not all traffic is created equal so be sure to test each in small batches to see the quality of that traffic.

Set it and forget it. So now that your site is ready to go you should literally be able to set it and forget it and let that money trickle in.

Wait where is the money?
Okay so here is some rough math for you to contemplate.

Okay so let’s say we going to spend no more then $5 per day at Facebook and spend $0.01 per click and buy some $0.05 ad words on Google to push traffic to the site. Now that we have 500+ visitors coming to the site at a cost of $5-$10 per day. We are going to sign-up as an affiliate for example at Gameznflix that pays $10 per sign-up. Let’s say we do an average of 1% cost per action (CPA) a day that means we have now made $40 a day or $1,200 a month. Convert that into a year and you just banked $14,400.

These numbers I just made up and I’m not an Arbitrageur. If you are an Arbitrageur what is a realistic CTR?

This post was guest blogged by Gary Jones from BlueFur provides Dedicated Servers in Canada like the one that runs John Chow’s site.