What Is Traffic Arbitrage and How to Benefit from the Start?
Traffic arbitrage is a popular and quite profitable way of online earnings. Similar to any other sector, it requires a structured approach and fulfillment of certain rules. Well, what does arbitrage mean? How to earn on it rather than fail?
What is traffic arbitrage? How to earn on 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.
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.
What are the advantages of arbitrage?
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.
At the same time, this type of earnings has some disadvantages: unsteady income, severe competition.
Basic arbitrage terms and notions
A new activity always begins with training accompanied by key terms. They will help you to understand precious texts describing arbitrage experience and efficient methods of earnings.
Arbitrage specialist (publisher) – a person that acquires and resells traffic.
Offer – an ad offer specifying clear requirements for affiliate program pay-offs.
Traffic – an online user flow.
CPA networks – affiliate networks paying a reward when users perform certain actions.
Traffic redirection – directing the user flow from one online resource to another.
Free traffic sources
Traffic generation can be either paid or free of charge. To realize how an earning scheme is built, how to attract users as efficiently as possible, and where to start, you should work with free traffic.
Free sources include:
creation of useful content, search engine optimization;
inclusion of your website in ratings and specialized lists;
guest blogging or publication of articles on other resources if so agreed;
content sharing with the consent of the author on your blog;
social media activity (posts in specialized groups, comments).
Some of the above-mentioned techniques are efficient only if you have your own website. A strong personal YouTube channel is also one of the fruitful and freemium tools. Arbitrage is good for the fact that it does not necessarily require your own resource and time for its growth.
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:
Its conversion (actions or website visits).
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;
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.
Offer is aimed at promoting certain services or goods on the Internet. Traffic source, target audience selection, and earnings depend on the offer chosen by publishers.
Each advertising offer consists of:
a product (services, goods);
a condition leading to the reward;
a pay-off sum for arbitrage experts.
Some offers are more expensive and others are cheaper. In the first case, you will have to invest substantially with the possibility to get eventually large revenues. In the second case, a percent or a fixed reward is relatively small, but such an offer does not require enormous investments (it is appropriate to newcomers).
Publishers can earn on the following core areas: games, apps, travels, dating, beauty, nutra (healthy goods), e-commerce, gambling, and stock trading. Based on the selected offer theme, you should determine the target audience in order to generate traffic profitably.
User context for traffic
User context means basic tasks and goals leading consumers to the Web. It is an important audience characteristic allowing to predict whether traffic arbitrage will be productive in a specific case.
There is hot traffic with contextual advertising: for instance, links offered at the request ‘order a pizza’. Users will most likely click on the appearing specialized link.
Cold traffic implies users that do not look for a product or service intentionally. Ads are shown to them as if accidentally with a primary goal of drawing their attention to new goods.
The understanding of audience context provides arbitrage specialists with an advantage: they can seamlessly build a strategy and elaborate special features of the ad message.
The main goal of publishers is to compensate for all the expenses for traffic acquisition and, in an ideal scenario, to gain good profit. How to achieve such a result? First off, you should define a proper combination of an offer and an advertising platform where traffic will be redirected.
To receive profit, you should not just randomly give ads to any audience but clearly realize who you should attract and why. Therefore, instead of huge volumes, it is better to start with experimental ones without high expenditures. It will allow to understand and determine which combinations of offers and platforms are efficient and which are not.