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Wow, the first real post on a blog… Well, first of all I would like to say hello to all the readers and welcome to PayPerClickArbitrage.com. This first post will talk about as you must have anticipated: Pay Per Click arbitrage. I want this post to be a general overview of what PPC arbitrage is and how people are succeding at it.
Pay Per Click arbitrage (Source: Wikipedia)
Online ad services like Yahoo! Search Marketing and Google adwords allow you to purchase online advertisements which cost you an agreed upon cost per click. These are known as PPC (Pay Per Click) ads. Some ad clicks will cost advertisers $0.01 while some can cost well over $10 depending on the keywords that were associated with the ad. Yahoo and Google both have programs which allow web publishers (aka owners of websites) to place ads on their own websites to make money. Some webmasters will make a website associated with a high paying keyword(s) and place PPC ads on it. Then, they will purchase low cost ads on Yahoo and Google for their websites. The end effect is traffic arbitrage. Low cost traffic is redirected towards pages which contain high paying links. Enough money is made from clicks to cover the traffic cost and turn a profit.
This is not arbitrage as defined above. The owner of the website is simply betting that the income from the affiliate marketing organisation is more than the cost of bringing visitors to the site. The website owner must pay the search engine for each visitor to the website but payment from the affliliate only occurs if the visitor actually clicks onto one of the affiliate advertisements. A classic example might be where each visitor to the site costs the site owner 10 cents but an affiliate marketer will pay the website owner 10 dollars if that visitor clicks through to the target website. In this case if more than 1 in 100 visitors click through then the site makes a profit; and conversely if less than 1 in 100 click through then the site maks a loss. The same theory holds true if the affiliate is the same (or another) search engine.
Wow, this is great so how do I start making money from arbitrage?
Well, you will need to come-up with a way of calculating the spreads (difference between the lowest and highest bids) for many different sets of keywords. How do I do that? Well, you can always try a guess but the best way to do it would be to use mathematic. What? I ear you say! Yes, math is your best tool to calculate the average spread of a group of keywords and Standard Deviation is the formula to calculate it.
Standard Deviation (source: wikipedia.org)
In probability and statistics, the standard deviation of a probability distribution, random variable, or population or multiset of values is a measure of the spread of its values. It is defined as the square root of the variance.
The standard deviation is measured in the same units as the values of the population. For a population of distances in meters, the standard deviation is also measured in meters, whereas the variance is measured in square meters.
At least 75% of the values in any population are at most two standard deviations away from the mean (see Chebyshev’s inequality). The actual percentage depends on the distribution; for example, it is approximately 95% if the population has a normal distribution.
The term standard deviation was introduced to statistics by Karl Pearson On the dissection of asymmetrical frequency curves, 1894.
The standard deviation is the root mean square (RMS) deviation of the values from their arithmetic mean. For example, in the population {4, 8}, the mean is 6 and the standard deviation is 2. This may be written: {4, 8} ≈ 6±2. In this case 100% of the values in the population are within one standard deviation of the mean.
Standard deviation is the most common measure of statistical dispersion, measuring how widely spread the values in a data set are. If the data points are all close to the mean, then the standard deviation is close to zero. If many data points are far from the mean, then the standard deviation is far from zero. If all the data values are equal, then the standard deviation is zero.
more information about Standard Deviation Here
So now that we know how to calculate the best performing keywords, how do I apply it to making money? Well you could start by trying to find a bunch of keywords and then calculate the standard deviation but this would take so much time that even after a month, you wouldnt have more than a few performing keywords. This is where software automation comes into place. One of my favorite tool is Keywords Analyzer; it enables you to do all that and much more in a few easy steps.
Keywords Analyzer
You need a competitive advantage in the ever crowding online marketplace. You need good keyword research, and competitive analysis, and the ability to uncover what ads the market clicks on—and a strategy to beat your competition. To do all this manually used to take hours upon hours every week! When people first started getting hip to the fact that the days of low hanging fruit are over with, they started to employ these tactics. But what a pain in the butt it is to do manually. You‘d have to spend hours behind a keyboard, trying to be your business’s spy, seeking out what your competition is doing. Here’s a quick link for more details about KA:
So now we know which keywords to choose from and are ready to roll-out our money making machine… Not yet, we still need a way to create sites and manage all this information. This is where XsitePro comes into the picture.
XSitePro
FrontPage® and DreamWeaver® are both great pieces of software but they were NOT designed with Internet Marketers in mind. XSitePro was, which is why it has rapidly become the web site development tool of choice for Internet Marketers who are serious about running a profitable online business. During every stage of the development process they had the Internet Marketer in mind, which is why the software is packed to the brim with features that are designed especially to make your life easier and to maximize the chance of online success.
Whether you are a complete newbie to Internet Marketing or a long-established online entrepreneur you will find that XSitePro will:
- Cut your development time down massively (what previously took days and weeks will take hours and minutes)
- Allow you to do things that were previously only possible by employing costly programmers and web development staff, which means that you control your web site and not the techies.
- Let you concentrate on building your online business rather than allowing untold hours to be soaked up developing web sites.
- Take away the frustration of web site development so that running your online business becomes a pleasure rather than a chore.
- Put tools at your disposal which will allow you to take your new or existing business to the next level of success.
- Make it easy to keep your web sites up-to-date so that they don’t end up becoming cobwebs (i.e. like the vast majority of Internet Marketing web sites that are rarely if ever updated because it is just too much trouble using conventional tools)
Click here for more information on XSitePro
So now that we have the tools to find profitable keywords, build our sites and make money, how do we proceed? Here’s a quick step by step general tutorial:
- Create account with adsense, Adword, Yahoo Publisher Network, Enhance and Miva
- Gather themed keyword lists with Keywords Analyzer
- Analyze keywords for arbitrage performances using Keywords Analyzer
- Save all your performing keywords into themed lists
- Open Xsitepro and create the template and best paying ads (make sure not to put too many blocks on a page to maximize profits)
- Generate site and upload to server
- Login to Adword, adsense, YPN and Miva to setup your campains
- Voila, your all set! Make sure to monitor your campaing actively to maximize your profits!
I hope this first post will help you in your quest to make money online…
More arbitrage Info:
http://www.wolf-howl.com/sem/adsense-arbitrage-tips-tricks-secrets/
http://uv.bidtool.overture.com/d/USm/search/tools/bidtool/
http://www.jensense.com/archives/2005/10/one_poorly_conv.html
http://www.wolf-howl.com/sem/adsense-arbitrage-automation-and-button-pushing/
http://www.shoemoney.com/2006/04/08/the-1000000-experiment-with-ppc-part-1/
http://seoblackhat.com/2005/10/03/automated-ppc-arbitrage-conspiracy-or-opportunity/
http://forums.searchenginewatch.com/showthread.php?t=1703
http://forums.seochat.com/pay-per-click-37/ppc-arbitrage-60366.html
http://www.bobparsons.com/MayKiting.html
Mike
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