What Is Ppc Arbitrage?

[gorilla_bob]

hello,

Saw this in a few posts and wanted to understand more about it. What is PPC Arbitrage? how does it work? does it work all the time? can you do it to any domain?

many thanks,

Bob

 

[Adam DickerAdam Dicker is verified member.]

PPC Arbitrage would be buying ads on Google adwords and then sending the traffic to a ppc page.

Example: buying the keyword 'remove spyware' and sending the traffic to worm.com

-=DCG=-

 

[gorilla_bob]

Thanks DCG,

I think I understand that...but I'm still confused on how one would be able to make money. This is what I'm thinking..

Let's say I purchase Adwords for "remove spyware" at $2.00 a click...then when a visitor clicks on my ad i get charged $2 but they go to my site "worm.com"

When the visitor is there, he may or may not click on the ads...if he doesn't i lose out. But i'm thinking that even if he does, then I would only get a percentage from my adsense ppc ads...like for instance 20%...so I'm still confused on how i would be able to make money...since each visitor would have to click several ads on my site just so that I could break even.

Am I missing something here?

- Bob

 

[Gerry]

Here are a couple of articles.

http://frankschilling.typepad.com/my_weblog/2007/03/web_20_sparkle_.html
http://blog.domaintools.com/2007/03/search-engine-arbitrage-pros-and-cons/

If you are unfamiliar with Frank Schilling, he is considered a "guru" by many, perhaps even a god to some, and many take each word he says as gospel.

Personally, I take it all in stride and with a grain of salt. If Frank didn't make his money that way then he doesn't like it.

The gist of Arbitrage is redirecting you Google Adwords to another domain that would pay more than the $2.00 per click but can be ultimately very costly on the front end. Yes, supposedly you can make money, but as the article points out is spending $2mil worth making $2.2Mil?

Just like the stock market and mutual funds, HIGH RISK = HIGH YIELD/HIGH LOSES.

Still some interesting points raised on both sides of the coin and worthwhile reading.

 

[bramzero]

Just wanna give a little info, google adsense has started to disable arbitrage publisher accounts.

http://www.jensense.com/archives/2007/05/google_adsense_16.html