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I was wondering whether anyone here has tried out an arbitrage method using Adwords and Adsense?

If so, what do you spend per month and what are your returns?


I need to question on your question hehe. What is arbitrage.
Arbitrage is where you run a pay-per-click campaign to generate traffic. Visitors then will - hopefully - click on adsense ads on your site.

You would want to buy cheap keywords that bring giant amounts of traffic, then show ads with a decent return.

Zach, I've been interested in this, too - I'll let you know if I do any tests.
I have seen that done..its advertised on ebay..and I would gladly help someone for any rate they thought fitSmile
deelip Wrote:I need to question on your question hehe. What is arbitrage.

Actually, the best form of click arbitrage isn't to go broad and get low priced high volume traffic. In fact, it's the opposite often times. Real solid arbitrage that will actually generate money for you is to use HIGHLY targeted niche keywords so you get laser targeted visitors clicking through to targeted offers/landing pages promoting your high paying CPA for that niche.

Depending on the niche etc, you can make $20 per action for the user even just entering their email/zip code. Makes paying even $1-2 per click worth it. DEFINITELY worth it with practice so you're getting solid response rates to your ads. If you've targeted everything well and stay on top of managing your ads etc, I've heard of people with 66%+ conversion rates on this type of arbitrage. If you can get those numbers even paying $5 a click is worth it.

How many times would you pay $5 if you knew it would generate $10-20?
Used to be profitable... not any more though. [Image: 08040837089cdf46631a10aca5258e16.gif]
I guess you could do it but I'm sure it would hurt your quality score. Google gets more and more agressive and constantly evolve how their rating system works. They would likely catch on very fast. Look at their terms of service first and then go about it from there. Not the greatest way to make money from Adwords but hey, your stuff.