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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