Saturday, May 26, 2007

My first experiement with traffic arbitrage

Well I have finally taken to plunge into trying my hand at traffic arbitrage. Chances are if you have found this page you already know what traffic arbitrage is.


If not here is the .02 definition:

It is buying traffic for one price and selling it for another. I am using contextual advertising on other sites to drive traffic to an affiliate program.

From dictionary.com

ar·bi·trage [ahr-bi-trahzh for 1, 3; ahr-bi-trij for 2] Pronunciation Key - Show IPA Pronunciation noun, verb, -traged, -trag·ing. –noun
1.Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.


Here is exactly what I did:

I purchased $90 dollars in advertising to drive traffic to an affiliate program that pays $28 per sign up for a $1.87 product sale.

I will have to generate 4 sales to be in profit on this gambit.

I should generate 250 clicks and with only a 2% conversion I will be in profit.

My ad should be approved in two days. I will post a follow up after the first 24 hours it is live.

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