Affiliate marketing arbitrage is when a marketer purchases ppc campaigns with programs such as adwords and makes affiliate sales simply by linking to affiliate offers… As long as the affiliate sales are higher than your ppc costs you are making profit… Sounds simple? Yet it is not as easy as it sounds..
“Another form of Arbitrage is with PPC campaigns and adsense, you may have seen this one as well being posted on websites and i just wanted say I have confirmed that it is against the TOS with Adsense..”
Many Websites Claim Affiliate or PPC arbitrage is a get rich Quick system!
I am always surprised at how many websites claim this and then to be told down the bottom of the sales letter, only $97 dollars and i will send you the secrets. It is a total waste of money if you ask me, why would someone send you the secrets when they can be making money from it themselves… Would n’t they want less people to know this if it worked as well as they said..?
Affiliate Arbitrage is not a Joke?
Arbitrage is not a joke however, many marketers do this form of marketing with affiliate programs and some do have some good success.. However what makes it feel like a joke is how many websites claim instant success.. Trust me this form of marketing is like gambling. Some programs work better than others and some work better at different times…
Okay so let’s look at what could work with this form of marketing.. I would recommend pay per lead sort of affiliate programs first or programs which involve a free sign up but convert into onward commission sales for any services purchased later..
Example of Affiliate Arbitrage at work…
Pay Per Lead Example – Affiliate Arbitrage
Buy low paid ppc keywords ( 1 cent per click if possible) for a Affiliate Program with say a Pay per lead of $7 dollars to $10 or higher. It is a free to sign up platform so conversion is easier.. If say from the first sale it costs $5.00 or 250 clicks to produce one sale. You just made a profit of $2 to $5… Next sale may be less or more or a loss but you get the point… See how it can be like gambling…?
Pay Per Sale, But free to sign up Example – Affiliate Arbitrage
This is with a program that is free to sign up. No commission is paid unless they purchase something or use the service within the program. These are good for sign ups which can convert high, however sales after sign up can still be low… This one is a bit more like an investment as sign ups may purchase later in the affiliate program…
Pay Per Sale But Residual Earning – Affiliate Arbitrage
There is that word I love again, residual affiliate programs… They may be less conversion than others in general, but they hold the biggest earning potential. I mean if you are going to gamble with your money and invest in arbitrage it may as well be invested into ongoing commissions. That way even if it only converts at commission paid price then you still are ahead in future as that customer is yours for life… A good example of a good residual earning program, is needed ongoing services such as hosting or quality advertising networks..
Arbitrage Converts less than on your Blog or Website!
This is an important point, while on your own blog you may convert one in 200 clicks to targeted affiliate programs, with arbitrage it is always less. The main reason is targeting, you see people that view your blog or website are more interested in the program than via a ppc ad because you blog is related. Also because it is referred via a blog or website it has more emotional response, which increases conversion… With arbitrage it could be as high as 400 clicks per sale or higher, so all elements need to be taken into order.
It is a bit like mathematics, finding the right conversion, some may work some may not… If you are thinking of trying this method of marketing, I would recommend writing everything down and looking at the figures for each program you think may have potential before starting with a campaign… Look at it more like an investment… Good luck!