Dictionary.com defines Arbitrage as: Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.
Essentially this is one of the many methods many use when first starting out to generate some reliable cash influx while learning the ropes. Its relatively easy and generally depending on your budget low-risk. What you are doing is buying traffic which is targeted mind you to the niche you are bringing it to and watching the beauty of your paypal account or Adsense account grow. Their are many different types of arbitrage which you can take advantage of. Some I will not go into as it is far beyond this post to disect and explain them all. What I will do is cover a couple of the easiest for begginers to get into quickly and see a return.
Adsense Arbitrage – Essentially how this type operates is that you have a site and domain which are related to some niche. You fill the site with some content that is at least ok in quality. Everything around this content should be a click able money earning ad, be it adsense, or any other kind of cash earning potential item. You will research and setup an adwords campaign and drive traffic to the site where since they are their because of the niche they are highly likely to click one of the paid ads. This works very well with text link type adsense ads. Their are lots of tips and tricks available on the net and blogosphere that take this type into ultra deep coverage. You can in fact just about live off of this if you are willing to take the risk on the ppc game.
Affiliate Sales Arbitrage – For me this is sending targeted traffic to a sales or squeeze page which warms up your viewer to let loose their pocket strings. This traffic could be targeted or not. Often you will better with ppc targeted traffic, but sometimes depending on the content you can bring in all different kinds of traffic and have it driven directly to your squeeze page. Results will vary on a plethora of variables, but essentially if you learn a few of the tricks about not losing your shirt with ppc you can make alot of money using these methods. I would highly recommend you put up two or three sites with different niches and run a limited campaign to get your feet wet. Once you feel that your ready send in the traffic and honest, watch your account get fat!
These two very different methods have the capability to earn you a five or six figure income. As with all make money online schemes these are sensitive to how well the targeted traffic you and bringing to your site or ads is and how appealing the landing pages and how well written the sales pages are. You could invest minimally with top content and traffic and easily return 10x on your investment. Just starting out it is more realistic to expect to almost double your money. Keep in mind the thresholds and time of month payments for the systems you are using. For me I would recommend buying domains and using adwords or adbrite to drive targeted traffic to Market Leverage full page affiliate ad’s or blog like sites which syndicated content and adsense. This is a time intensive process, but what you will learn while mastering it will ready you for the next step most aspiring marketers take.
Try finding some affiliate offers to promote, even try your hand at a sales/landing/squeeze page and then either use ppc methods such as adwords or buying traffic wholesale via a service such as adbrite and send them to these pages. Try to target the traffic as much as you can afford, PPC will probably yield better laser directed results whereas the adbrite method is more or less the shotgun blast approach. Start small and spend as little as possible. It is very easy to lose your shirt in these games so read up as much as you can on the particular type of arbitrage which you would like to start exploiting.
Have you ever used arbitrage to make money? How did you do? Any suggestions for a first timer?



Very interesting topic, I don’t think I’ve ever heard the term, though I’m familiar with the concept. I think the adsense method is one of the esiest to get started with.
Though, I personally haven’t used any ppc campaigns as of yet, I plan to in the near future….I got some free credits with my hosting! lol
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I don’t suggest Adsense Arbitrage in huge amounts with high CTR. Most probably you will get banned by Google while you are blindly enjoying your arbitrage victory for some time.
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