Parked.com Update on Arbitrage

**gawnd** · 02-13-2008, 06:28 PM

Isn't advertising inherently arbitrage? What was Fox doing when it was advertising its programming during the Superbowl? Buying traffic that it knew it could in turn resell at higher rates to its advertiser.

Arbitrage in and of itself is not the problem, its the click fraud shops in asia. Just try buying some Looksmart traffic and you'll see what I mean. Your budget will get eaten up on ad delivery 10x that of Google for mainstream terms and at a steep discount - analytics even look good to the average webmaster, but the truth comes through in conversions which are 0. And Looksmart is considered 2nd tier - I can't even imagine the kind of crap these other "networks" generate and throw at legitimate advertisers.

**Seraphim** · 02-13-2008, 06:37 PM

Arbitrage is only for domainers like Frank Schilling, etc. You have to have a premium account to do it. When I was making 10k a day, Google got pissed off.

**flybuzz** · 02-13-2008, 08:18 PM

well, let us know when yahoo changes its mind and allow arbitrage again. They should have let microsoft took over instead.

**carlton** · 02-13-2008, 08:22 PM

Originally Posted by Seraphim

... When I was making 10k a day

10k ... really?

**CyrusL** · 02-13-2008, 08:47 PM

Originally Posted by Seraphim

Arbitrage is only for domainers like Frank Schilling, etc. You have to have a premium account to do it.

I've had no problems running both small and large scale arbi both fresh and tenured advertising accounts. I haven't gone direct to Google's domain feed though.

**MacyT.** · 02-13-2008, 10:00 PM

Originally Posted by gawnd

Isn't advertising inherently arbitrage? What was Fox doing when it was advertising its programming during the Superbowl? Buying traffic that it knew it could in turn resell at higher rates to its advertiser.

There is a big difference. Fox creates, finances and owns (or at least licenses) the programming its advertising. We have no relationship to the product which is being advertised on our parked page - besides for benefiting financially when someone clicks on that product or company's ad. Advertisers pay Fox those high rates for the privilege of it's viewers eyeballs - eyeballs that were already there. Arbitrage is directing eyeballs to advertisements - without there being anything else there. Hence, to them it's there is not enough value provided to warrant the higher rates advertisers were being forced to pay.

It's nowhere near the same thing and its why it has gone away.

**Jacksplat** · 02-13-2008, 10:58 PM

Originally Posted by CaleyD

Banning arbitrage is, IMO, nothing more than restricting free trade. Since when did it become "wrong" to buy something cheap at one place and sell it for a profit elsewhere?

I have 1300 or so parked domains (without arbitrage) nothing pisses me off more than finding my historically well paying domains inundated with low paying arbitrage sites stealing my $$$. I have some dictionary domains with natural traffic which would have previously paid 25 cents to 1.50 per click.... and now some will pay at best 11 cents, even some at 5 cents. Looking at the majority of the domains effected in parking I'll manually type in the urls in the ads only to find some ad filled site either parked or made into a low grade ppc site. Not just a few sites in the ads, but almost every one on parked page/s.

At the end of the day arbitrage cheapens the value of using ppc as an advertiser, lowering the amount they're willing to pay.

I support banning arbitrage, and avoided trying it even though I knew it was easy money.

**tonyfloyd** · 02-14-2008, 01:04 PM

ding ding ding....Final bell tolls...Game is over....or is it??...

**hydroboi** · 02-14-2008, 04:24 PM

Game over Dawg time to start developing =)

**domain54326** · 02-14-2008, 04:32 PM

how are stats today?

**Blue and Gold** · 02-14-2008, 04:35 PM

Mine were great until about 12:45 EST then none. May be because I turned everything off huh. Boy MSN is going to miss me.

**crazydomainer** · 02-14-2008, 07:06 PM

Mine was great until about 2:00 ET when I turned off my google account. Google alone just lost over 80K a year with just my account. I appreciate parked.com for allowing this for so long. Many thanks to Donny and his team. Crossing my fingers that maybe someday arbi will return.

**Acro** · 02-14-2008, 07:08 PM

So the bottom line is, PPC will increase?

**Blue and Gold** · 02-14-2008, 07:21 PM

Logically would it not decrease.

Could someone PLEASE either post an affiliate website here or PM me one so that I can know what we are looking at.

**Freddy81** · 02-14-2008, 10:39 PM

We have stopped our arbi business too. Not so much revenue as some of you guys, but here's the average February day:

Avg. daily gross revenue = $2 196
Avg. daily net revenue = $1 138
% Income = 193%
Avg. daily adwords spend = $1 058

I hope the storm will calm down one day and we can return to the business.

**tonyfloyd** · 02-14-2008, 10:47 PM

wow...bravo Freddy...

**DomainsInc** · 02-14-2008, 10:49 PM

I never realized how "easy" it was to make so much money via this method. Makes me wish I would of gotten in on it while I could.

**afloat.com** · 02-14-2008, 10:52 PM

I wonder what the percentage of yahoo's ppc traffic was coming from arbitrage?

**tonyfloyd** · 02-14-2008, 10:53 PM

isn't as "easy" as u thought.........

**DomainsInc** · 02-14-2008, 11:00 PM

Originally Posted by tonyfloyd

isn't as "easy" as u thought.........

Well thats why i put easy in quotes. Not to say that anyone could do it but with almost 10 years experience in pushing affiliate programs I'm sure I could of made a go at it.