Newcomers who make their first steps in arbitrage, mistakenly believe that this way of earning – one of the easiest in the Web. However, if you study the question in more detail, you realize that without the proper knowledge you can forget about success, and instead of profits you have to incur serious losses.
How to make money from traffic arbitrage
The concept of traffic arbitrage refers to a type of Internet business, the meaning of which is to buy and resell traffic at a higher price. In other words, we buy traffic where it costs a penny, and then sell it to where they pay markedly more.
Let’s explain with a simple example. We bought 1 thousand clicks to our site, for example, for $10. Of those thousand visitors 800 clicked on the referral link to partner sites, and 6 even made purchases. The amount of income we received was $ 60 dollars. Performing simple calculations, we can conclude that the net earnings on arbitrage will be $ 50 minus $ 10 invested in traffic. It looks simple enough, but in fact there are some subtleties.
As of today, arbitrage can be divided into 2 types:
- Direct purchase of traffic to affiliate network sites (purchased traffic is poured into affiliate networks directly);
- Buying traffic on your own sources (traffic is poured on email subscriptions, PUSH-notifications subscriptions, telegram channels, publics, etc., and then – made advertising mailings or posts, which pay back the investment in the source of traffic);
What is traffic arbitrage – in simple words
The basic components of arbitrage are the answers to the three most important questions:
- Where to get traffic (i.e. its source);
- How to control and analyze traffic;
- Where to drain it with maximum conversions.
Let’s talk in more detail about each of the steps mentioned.
Buying traffic.
There are several sources of traffic, namely:
- Free source. This includes bulletin boards, thematic forums, etc. The search for such sources – a very troublesome and time-consuming task, but if you treat it responsibly, to get the desired result is quite real. Free traffic is of the most interest for newbies, who have no money to buy clicks.
- Own Internet resource – a popular source of traffic, which will suit the owners of thematic sites similar to the sites-partners of the subject.
- Contextual advertising systems are a financially accessible source of quality traffic. The most popular CCAs are Yandex.Direct and Google Adsense. Optimal topics for this type of traffic are banks and loans, online education, etc.
- Traffic from social networks is a source that has been extremely popular lately. You can work with it both directly and through special services.
Next come banner networks, which are rightly considered expensive and not as effective as one would like, the source of visits, traffic exchanges (cheap, but little use), teaser networks (low-quality traffic).
You can read more about traffic sources in our previous article – Traffic Sources for Arbitrage
Traffic Control
Above we have already talked about the existence of direct arbitrage and arbitrage with the use of the lending. The second type is rightfully considered more effective. Using a landing page allows you to increase the number of actions performed by the user, it also provides the ability to analyze the data in detail.
All traffic exchangers and teaser systems allow you to screen out ineffective sites to increase conversions, but how do you determine which site is ineffective? To do this, Google Analytics or Yandex.Metrika is bolted to the banding.
Goals are set up and key conversions from the landing page to the affiliate are tracked. The ratio of the percentage of conversions to the total number of visits from a particular site determines its effectiveness, audience activity and other indicators on which you can draw conclusions about the effectiveness of the traffic source or advertisement.
The second traffic control tool is a tracker, it allows you to get more data about your visitors, it will determine the version of the operating system, browser, type of connection and group all this information into a visual report. Based on this data within the tracker, you can create special rules for traffic. For example, the tracker can detect a visitor from a mobile device and direct him to the mobile version of the site.
As a tracker we can advise AdsBridge – It has a free trial version for 14 days or 50,000 clicks on your link, which will be enough for a small advertising campaign and study the work of this tool.
Where to pour traffic
Affiliate programs that are suitable for directing traffic to them, there are a huge number of today. The user only needs to choose an affiliate program that suits the theme of his site or traffic, register for it and get links to the landing pages where the traffic will go in his personal cabinet.
The biggest and well-deserved demand among arbitrageurs are CPA affiliates that pay for performing a specific action. These actions are called offers, which are put forward by advertisers. In the offerers you can be paid for registration on a site, downloading and installation of the game, the application for purchase of the goods or other actions effective for the advertiser.
Experts of this industry advise “not to put eggs in one basket”, and pour traffic to different affiliate companies, because each of them – its own advantages, and the combination of all available ways to work with traffic will maximize profits.
Traffic Arbitrage – Training
We regularly conduct online training on traffic arbitrage and not only, we have been doing it absolutely free for 6 years. If you are interested in this topic and you want to learn what is arbitrage traffic on the Internet, how to make money on arbitrage traffic, and most importantly – how to learn arbitrage from scratch, then Go to the training pagewhere we post free lessons and make announcements about upcoming events.