The internet opened a door of limitless possibilities for people in different parts of the world. You can make a significant amount of money from the internet if you know where to look. One of the many reliable ways to generate money online is through traffic arbitrage. It is a simple and cost-effective business that you can run from the comfort of your home. First of all, let us define traffic arbitrage. Traffic arbitrage is a method of generating profit that involves redirecting visitors across websites. The earning potential is incredible if you know how to do it right. All you have to do is redirect traffic from a website with high volume to a website with more targeted clients. This targeted audience is usually lured with advertisements on the high traffic website. As a profit, you will get the difference between the original cost of the ad and the cost on the website you directed the traffic to. It’s just like arbitrage trading but instead of selling assets, you’ll be selling traffic through advertisements.
Types Of Revenue Generation for Traffic Arbitrage
1. Cost Per Sale Advertising
This is one of the most common methods of earning money through traffic arbitrage. It is also called cost per conversion because the arbitrage specialist will only get paid when a client purchases a product or service through their advertisement. The only disadvantage of this form of advertising is that you’ll not make money if the visitor doesn’t pay for something. Your earning is based strictly on commission. If 1000 people view your ads and one 10 purchase through your link, you’ll only get a commission for just 10. You can maximize your cost per sale earnings by ensuring that your ads are displayed to the most targeted audience. The more high-quality traffic you get from these reliable sources, the higher your chances.
2. Pay Per Click Advertising
If you’ve ever heard of Google Adsense, then you’ve probably heard of Pay Per Click advertising. It is an internet advertising model that pays publishers for allowing advertisers to drive traffic to their products or services. It’s similar to the cost per sale but you’ll get paid each time someone clicks on your advertisements whether they make purchases or not. While pay per click ads was typically seen on search engines like Google and Bing in the past, social networking sites now offer Pay Per Click advertising to their publishers. There are two types of pay per click advertising. One involves a bidding system while the other one doesn’t. With the bidding system, the advertisers will bid on relevant keywords and pay the arbitrage specialist whenever ads are clicked following a search of these relevant keywords. The cost per click, in this case, varies depending on the keywords. For the other type of PPC ad, the payment per click is fixed. You can get between $0.01 to $0.25 per click depending on the advertiser.
3. Cost Per Mile
In advertising, the cost per mile is also referred to as the cost per thousand. Rather than paying the arbitrage specialist per views or clicks, they are paid per thousand impressions. It is one of the least profitable methods of generating income from arbitrage traffic. You can get the CPM by dividing the total cost for the ad placement by the number of impressions, usually in a thousand. If the views cannot be counted, the CPM will be based on estimated views which will still be 1000. Advertisers love this funding method because it helps them save money and determine the relative cost of an advertising campaign through a particular channel. It doesn’t matter if it is radio, magazine, television, newspaper or online advertising. Most people use CPM with other methods like cost per acquisition and percentage of the sale.
4. Pay Per Action
In affiliate marketing, Pay Per Action has to do with rewarding an affiliate each time a client takes a certain action. If an advertiser is trying to market a book and an arbitrage specialist is promoting a link to download that book, the arbitrage specialist will get paid each time a client downloads the book through that link. Your payment isn’t based on any financial move by the audience, it is simply based on their action. So, it is one of the most profitable methods of generating money through arbitrage profit. We used a download link as an example but the action can be anything at all. An advertiser might be trying to increase blog subscriptions, email subscriptions, or even social media followers. These actions don’t usually require money. This is why it is called pay per action.
How to Succeed in Traffic Arbitrage
- Build a Mailing List
Indeed, you don’t need to create a website to make money from traffic arbitrage but this doesn’t mean that you don’t need a reliable mailing list. The power of a good email list cannot be overemphasized. It is the perfect lead magnet that will allow you to maximize your profit. Research has shown that only 1 to 3% of the people who receive your offers will convert. This isn’t a high percentage so you can understand why reaching a targeted audience is important. With a dedicated mailing list, you can convert up to 10 times more visitors.
- Join a CPA Network
Being a lone wolf is great but you can maximize your earnings by joining a reputable CPA network. These CPA networks act as intermediaries between arbitrage specialists and advertisers. They will help you get targeted traffic, regulate your work, count traffic, and ensure that both parties meet their end of the bargain. The advertisers will not be able to reap you off and you will be obligated to fulfill your promise.
- Generate a Sales Funnel
Sales funnels aren’t exclusive to owners of products and services. Affiliate markets and arbitrage specialists can generate sales funnels as well. The sales funnel is a client-focused marketing model that Illustrates their journey from when they come across the product and services for the first time to when they finally make a purchase. If your goal is to propel the action, then the sales funnel stops when the client clicks the link, downloads the video or like the official social media pages. Master all the points in the sales funnel and make sure that you guide the clients through the entire process.
- Focus on One Niche
While most arbitrage specialists aren’t selective about which products or services they deal with, you should focus on a particular niche. Focusing on one niche and maybe a few related niches will make your job as an arbitrage specialist easier. Some people try to match traffic across niches to increase their earnings. This might work sometimes but not all the time. With a great strategy and a good CPA network, you can make money from a single affiliate arbitrage marketing niche.
- Set Realistic Expectations
Most people think traffic arbitrage is a get rich quick scheme but the truth is that it’s not. It takes time and effort to make a name for yourself in the space. Beginner arbitrage specialists make between $150 to $200 monthly. Advanced specialists can make up to $2000 or more monthly. So, if you’re just starting, don’t expect to earn the same amount as an experienced specialist that has been in the game for years. Without unrealistic expectations, there will be no disappointment.
Traffic arbitrage is a flexible method of generating profit online without owning a website or product. All you have to do is match targeted traffic to products and services. Depending on the type of marketing and the level of traffic you get, you can make a lot of money from traffic arbitrage. Thanks to the numerous CPA networks online, you don’t need to do everything manually. Some of the best CPA networks online are Toro Advertising, Max Bounty, Crak Revenue, Clickbooth, CPA Lead, CPAMatica, and Admitad. Each one has a set of unique terms and conditions but the overall goal is the same.