What Is Traffic Arbitrage and How Can You Earn on That?
Traffic arbitrage is a promising and accessible way to earn money by redirecting visitors from one website to another one. What are the peculiarities of this work and what needs to be done to make the biggest profit possible?
What is traffic arbitrage?
The arbitrage specialist redirects traffic – finds potential customers on a certain website, places an advertisement there, and lures them to another website. The net income is the difference between the ad cost on one resource and the reward paid by the other resource.
Traffic arbitrage is a simple way to make money on the Internet, available even to newbies. It allows people willing to try out this kind of business to start earning funds quite quickly and without heavy investments.
Advantages of arbitrage:
- a possibility to make a profit without the need to create a website;
- the start is possible with a small budget;
- easily understandable operation schemes;
- flexible working hours;
- arbitrage services are in-demand.
Like any other business, arbitrage requires a planned approach and the maximum of insight into processes. In the long run, a diligent newbie can earn $150 and more per month, and the income of an experienced arbitrage specialist equals to multi-digit numbers.
Main terms and notions in arbitrage
One of the important conditions for successful arbitrage is the ability to learn and regularly update your knowledge. To start your way in traffic redirection and making money from affiliate programs, you need to learn the basic terms and notions of this field.
Arbitrage specialist – the person that finds traffic for a certain resource and gets a reward for the brought users.
Advertiser – the end recipient of traffic, seller of goods or services, online resource that needs new users, buyers, customers. For example, an Internet store or online casino can act as an advertiser.
Affiliate program (referral) – a form of collaboration between advertiser and arbitrage specialist. The latter advertises and promotes services and gets money for the brought customers.
Offer – an offering from the advertiser. The offer specifies requirements to the traffic brought by the arbitrage specialist, defines the advertising tools and the amount of the reward.
CPA network – an intermediary between advertisers and arbitrage specialists. CPA networks count traffic, regulate the work of the affiliate program, bear responsibility for financial arrangements between parties.
Affiliate programs – a format of business partnership between arbitrage specialists and advertisers, in the process of which traffic is attracted to websites and rewards are guaranteed in return.
Affiliate programs and their peculiarities
Arbitrage services and affiliates that provide them are in constant demand in the Internet marketing industry. Using this kind of collaboration, advertisers (Internet stores, gambling sites, game pages) attract a great number of new customers. The work is done according to a certain scheme.
- Aiming to attract new customers, the advertiser publishes an affiliate program or places an offer in CPA networks.
- The arbitrage specialist uses advertising materials to bring new users to the advertiser and earns money on that.
The sum depends on the type of offer and its conditions. The most widespread type of affiliate programs now are the ones that pay for the actions of visitors. For example, a person clicks on the link, goes to the website, registers, and the arbitrage specialist gets the preset percentage.
What do arbitrage specialists get money for?
The choice of the offer and advertising platform influences not only the efficiency of arbitrage but also the income of the arbitrage specialist. There are several monetization models and anyone can choose the most suitable option.
Pay per click, PPC. The reward is paid each time the user clicks the referral link. Not the most popular type of affiliate program but a rather simple one. On average, a click costs from $0.01 to $0.25. In case you work with such an offer, the most convenient way to attract traffic is to use clickbait texts and eye-catching banner ads.
Pay per action, PPA. The affiliate gets a reward if a customer makes a certain action on the advertiser website, for example, registers or downloads some product. It is a rather profitable and not the most difficult type of the affiliate program, as you do not have to dispose users to make a purchase and spend money.
Cost per mille, CPM. The least profitable arbitrage option, when the reward is paid for ad views. The cost is set for 1,000 impressions.
Cost per sale, CPS. A profitable type of offer in terms of the price. In case the advertiser’s conditions are met, the affiliate gets a percentage of the revenue. For example, a customer follows the link of the arbitrage specialist and goes to the Internet store, where he or she makes a purchase. In this case, the arbitrage specialist gets the commission. In a variety of this model, customers are attached to affiliates on a regular basis and commission is paid from all purchases of the customer.
Standalone offers combine the pay per click and cost per sale models. Besides, one can earn money for the brought arbitrage specialists: their performance efficiency and income influence the commission rate (which is paid by the affiliate program).
Why CPA networks are convenient for arbitrage specialists
Partnership with CPA networks is carried out according to the following scheme: the advertiser turns to the network to publish the offer (advertisement), arbitrage specialists register with the network and can choose the most interesting offers to work with.
Thanks to affiliate services, arbitrage specialists get the following benefits:
- statistics tracking tools;
- possibility to sort out offers;
- readymade landing pages;
- monitoring of fulfilled actions;
- control of payouts;
- development of platforms intended for placing templates of landing pages and teaser ads.
Besides, it is very important to have the possibility to switch between advertising offerings in order to choose the most optimal and profitable one in practice. The main conditions of successful traffic arbitrage in CPA networks are a well-elaborated strategy chosen by the arbitrage specialist, ability and skill in choosing offers, efficient use of customer acquisition techniques.
One should take into account that not all affiliate programs work with newbie arbitrage specialists, especially if they have no website. Besides, before you start the collaboration, you have to read the conditions, and feedbacks of other users attentively (about the timeliness of payouts, quality of technical support).
Traffic acquisition techniques for arbitrage
Arbitrage specialists can buy traffic at advertising exchanges for certain sums in order to make a profit for reselling this traffic, but there are also methods to get it free of charge. In this case, you will have to invest time and effort in the search for traffic by generating a huge amount of content.
Personal website. You can attract new customers using high quality, interesting content that has to be updated regularly (articles, infographics, videos).
Guest blogging. Placement of interesting and meaningful articles on third-party resources by agreement (with the reference to the author and his website).
Social networks. Not only the development of themed groups and attracting people there but also active participation in discussions with non-intrusive advertising of your resource and content is important here.
You can also get free traffic using newsletters (not spam), your own YouTube channel, and participating in discussions on third-party blogs.
Paid traffic and its advantages
If the desired audience is clearly defined and traffic is well paid, the webmaster may find it reasonable to buy traffic. There are several ways to do it:
- through teaser networks (low-budget option);
- social networks (promotion and buying of posts);
- contextual advertising intended for targeted users (one of the most expensive ways);
- banner networks.
Main advantages of paid traffic acquisition are high speed and efficiency. For the maximum of returns, one needs to define the target audience, the platform for ad placement, and models of reselling traffic.
The core idea of traffic arbitrage is to redirect the user flow from one website to another one. The person that provides the end resource with visitors gets a certain payment for that. Traffic arbitrage allows earning both small and big sums. To work successfully and achieve a high level of revenues, one needs a systematic approach and accurate calculations. Upon a proper approach, invested effort, time, and money pay back.