Adsense Arbitrage

I remember the very first time I heard this term. It was about 3 years ago and actually at the time the principal was referred to as traffic middleman. Well, we've come a long way since then and Adsense Arbitrage, or whatever you want to call it, has made quite a few people a fair bit of money online. So, what exactly is it? How does it work? Is it still as effective as it was back in the good old days? Well, this article is going to answer those questions and hopefully give you an idea if Adsense Arbitrage is something that you want to get into.

What exactly is Adsense Arbitrage? Well, to put it simply, it is the practice of directing traffic from one pay per click service to a page that displays what are called Adsense ads. Adsense ads are actually other people's pay per click ads that appear on your web page. If visitors click on these ads, you receive a portion of what the ad cost the advertiser. An example of this would be if you had a pay per click account set up at Miva, which is a low cost pay per click site, and ran ads for the purpose of directing traffic to your site where you had ads displayed from Google's pay per click advertisers. Because, in general, Miva's rates are lower than Google's, you will make a profit on each click.

In theory, this sounds pretty simple. Direct traffic from one pay per click service to a page showing competing pay per click ads that pay higher. In practice however, it isn't quite so simple.

The first problem you run into is that when you get people to click on your ads at the one pay per click service, there is no guarantee that once they get to your web site that they are going to click on the ads that are there. Some people will get to your site, look around a bit and simply leave. If you're site is not ideally optimized so that you are fairly sure of getting a decent number of clicks to offset the cost of your pay per click ads, you may actually end up losing money.

The second problem is that with the recent changes in Google pay per click costs, ads that appear on content sites, the ones where you are directing people to, cost less than the ads that appear on search engines. This drastically reduces the difference between the cost of your ads and what you will make from the Adsense ads. This one fact alone has drastically changed the climate of Adsense Arbitrage to the point where it is very difficult to make the kind of money that you used to make just a couple of years ago.

So, the answer to the question, is it as effective as it was years ago, is no. That is why people who used to make $100 a day are now making that in a month, if they're lucky. And the truth of the matter is, I don't see things changing for the better any time soon.

Adsense Arbitrage just isn't what it used to be.

To YOUR Success