Pay Per Click Arbitrage Explained

By Charles Hopkins Published 01/2/2008 | Internet
Many people have heard about pay per click arbitrage but are unsure of what it actually is and therefore, don't consider using it as part of their Internet marketing arsenal.

PPC arbitrage is a method of buying low-cost clicks for one of your web pages, and once the visitor clicks through, they are presented with a page that, aside from the content on it, contains an XML or text feed of search engine listings. These search engine feeds are usually obtained from second-tier search engines. If the visitor clicks on one of these listings, you receive revenue from that click.

Obviously, for arbitrage to work the revenue obtained from a visitor clicking on a feed link must be greater than the cost of the clicks you are paying for.

If you are wondering whether it is possible to find ways to buy clicks for a few pennies, and have visitors click links on your page that can make you 40 or 50 cents each, it is entirely possible. Just check out the second-tier search pay per click search engines.

Second-tier search engines refer to companies that are a notch below Google, Yahoo!, and MSN in popularity. There are many of these search engines, such as Miva, Enhance, GoClick, and Search123 that can provide clicks on many keywords for just a few pennies each.

Likewise, there are several search engine companies that provide their feeds to webmasters, such as SearchFeed, RevenuePilot, SearchAnyway, and 7Search. When a visitor clicks on a link in one of these feeds you will earn a percentage of the revenue earned from that click. The percentage is usually quite high, from 50% to 65%.

The best keywords to use in pay per click arbitrage are ones from the most competitive markets. This means that you'll find your best success in pay per click arbitrage from niches such as insurance, education, pharmaceuticals, and online gambling.

Visit any of the second-tier search engines and you will see that buying clicks to your site are relatively inexpensive (5 to 15 cents per click), yet those companies which offer their search feeds will pay 50, 75, or even over a dollar for some very competitive keywords.

The key to executing an arbitrage campaign is by having a type of script, called an XML parser, implemented in your website. This type of script reads data from the visitor, such as IP address, and "pulls" in the necessary data from the feed and displays it on your web page.

These types of scripts are hard to find, although a few are available commercially for a very reasonable price. There is also the possibility of having a script written by using a service such as Elance or Rentacoder. A proficient PHP coder should be able to write an XML parser with minimal effort and not charge you an arm and a leg for it.

PPC arbitrage is an area of Internet marketing that is wide open and is one that should be explored further.