Arbitrage in Internet Marketing

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Arbitrage in Internet Marketing

Posted on February 2, 2010, 1:25 pm, by sanson, under PPC.

from wikipedia (http://en.wikipedia.org/wiki/Arbitrage):

In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit.

However arbitrage can be applied to different business models.

For example in Internet Marketing you may want to buy cheap traffic to send visitors to a page that contains ADS from different sources and you’d be pocketing the difference.

Very simple, very effective, very profitable. Be careful with terms and conditions, for example I know Adsense does not allow arbitrage.

Here’s some tools you can use for:

Competitive intelligence:
Some of the best keyword tool available today are: SpyFu, Ispionage, and Wordstream. These tools aggregate data from Google and can tell you:– > what ADS your competitors are using
– > how much they pay for those keywords
– > how long they have been online, etc, etc.

It’s a goldmine of information. Why reinventing the wheel when all this is available to you?
Getting traffic:
Since you already know what keywords and what ADS are working, it’s time to build some campaigns. Some of the tools that can help you generate thousands of ADS/campaigns/landing pages in minutes are: Wordstream, Speed PPC, and LP Gen.
Managing your campaigns:
Now that you have all these campaigns, and potentially, thousands of ADS running, managing them (if you are using excel or similar) would be a nightmare. Luckily there are tools out there making your life easier. For example: Clickable, Acquisio and Click Sweeper (the last 2 are for big accounts).