What is traffic arbitrage?
Traffic arbitrage is the redirection of users from one resource to another. People engaged in this activity earn on the difference between traffic purchases and sales. In layman’s terms, arbitrage specialists acquire a certain amount of traffic on one resource and resell it at a higher price to others. As a result, this difference is their earnings.
What does online traffic arbitrage mean? How does it differ from the rest of the online profit types? It belongs to the common earning niche as affiliate marketing and CPA networks, but they are not the same.
Affiliate programs allow to gain income by selling third-party goods (a fee is charged when users make a purchase), while CPA marketing allows to earn by performing specific actions (lead, request). Arbitrage is a part of these methods, as affiliate marketing operations need traffic.
Arbitrage experts obtain revenues according to the following pattern:
-Advertisers require clients who will visit their websites and buy some services or goods;
-Partners buy traffic (a definite number of users) and redirect it to advertisers at the specified price;
-If users conduct required actions, arbitrage specialists receive a financial reward.
The formula is pretty simple, but there are a lot of must-know nuances of efficient and profitable operations in this field. What matters in arbitrage is where to purchase traffic and which one to select in order to avoid losses.
Benefits of Traffic Arbitrage
Entrepreneurs look for traffic and cooperate with arbitrage specialists because of business benefits: enterprises advance, sales grow, while solid partners redirect high-quality traffic under fair conditions and on a permanent basis.
This kind of activity involves a range of advantages for arbitrage experts as well. Not only does traffic generation allow increasing profit, but it also helps to become financially independent and build your operational schedule on your own.
The best adventages are:
-Everyone can begin to redirect traffic;
-The start does not need big investments
-There are well-defined rules and terms;
-A job is not bound to the place and time.
Traffic acquisition methods for arbitrage
Registering in the affiliate program, arbitrage experts choose an offer, place creatives on the target resource, and get money for redirected traffic (in case of its conversion).
This earning approach can have a single disadvantage: an inaccurate forecast of traffic conversion, i.e. the amount of users following the link to the required resource. To obtain revenues without wasting your money, you should thoroughly elaborate a strategy and allocate your own budget.
You can earn with any affiliate program using the common pattern:
-Offer selection.
-Traffic acquisition.
-Its conversion (actions or website visits).
-Gaining profit.
How to earn on traffic reselling and obtain maximum profit? The best option is to examine where to buy traffic and at what price, as well as what target audience advertisers need.
There are the following paid sources:
-Google and Bing contextual advertising services;
-Targeted advertising on social media;
-obtrusive advertising like clickunder, namely automatic tabs;
-paid advertising on YouTube and other video services;
-teaser networks.
Paid traffic differs from the free one in a range of benefits, including a scalability option. For example, if the acquired flow proves to be efficient, it can be easily increased.
One more significant advantage is that arbitrage specialists will see the result of traffic purchase pretty fast in comparison with the result of the free method. It also helps to correct your operational schemes and multiply profit in the future.