Traffic arbitrage means attracting customers in exchange for a percentage of the sales, and in some cases, even fixed payments.
Promoting a product or service (the second is a way more popular option, to be perfectly honest) is done in different ways: through the own websites, social networks or other online resources. We will talk about channels in more detail below, so we will not focus on them for now.
Anyways, that one characteristic feature of this very type of activity is a completely independent financing of its own costs. That is why the work of an arbitrageur or webmaster (in traffic arbitrage they are called this way) is accompanied by both high risk and the possibility of unlimited income.
Read on and we will tell you about the basics of this business. However, please note that we cannot cover everything – the format is too limited, yet you can fill the missing information on the topic of traffic arbitration here – just in case!
How traffic arbitrage works: stages and steps
The process of traffic arbitrage can be divided into several main stages.
- The first step is to identify reliable and high-quality sources of traffic at a competitive price.
- The next stage is to optimize and set up ad campaigns. These are created and fine-tuned to attract targeted traffic to the advertiser’s site.
- The third stage is not a standalone phase; rather, it is an ongoing analysis and audit that must be continuously reproduced. It is essential to conduct a thorough optimization of the campaigns to ensure positive progress.
Parties involved in traffic arbitrage
The following parties are engaged in traffic arbitrage:
- A webmaster – an individual or entity that promotes offers with the objective of earning a reward.
- An advertiser – a person or entity that creates an offer and compensates the webmaster for the targeted action.
- The CPA network (also known as an affiliate network or just an affiliate program) serves as a platform for offers, acting as an intermediary between advertisers and webmasters.
So, where does the traffic actually come from?
Traffic doesn’t just appear out of thin air, right? If that’s the case, where does it come from? Well, there are a few sources and channels that are particularly popular. Let’s dive a little deeper.
Personal site (or even sites, perhaps)
Great for those who have already run a website on a topic that’s a good fit for affiliate agreements.
Everything is pretty straightforward here: one can just add a post, link, or teaser to redirect traffic.
It’s quick and easy. But impossible without a prepared and dissected base.
Markets
Maybe the cheapest and easiest way to find traffic. The main problem with the inflow of people from these places is their low overall interest. There will be a wave of transitions, sure thing, but after the end of payment it will subside, and only a small part will bring the desired result.
On the other hand, it is still savage cheap.
Banner ads
A method of getting traffic that’s been the subject of some debate. One the plus side, a lot of people see this kind of ad. On the minus side, because there are plenty of low-quality banners out there (not to mention the ones that lead to phishing sites), people are less confident to click on them.
At the same time, the prices stayed really high.
There are still some risks, right?
Of course there are. As with any business venture, traffic arbitrage carries some risks as well as potential profits. Like if you don’t have a plan in place, you could end up spending more than you make. As with almost any business or project, though.
- Also, the rules and algorithms on some platforms change all the time, which can affect how well your campaigns work, either indirectly or directly. You’ll have to adapt and learn new things, which can take a long time and get you knackered.
- Competition is another factor to consider. In some sectors, it is way too high, which a priori makes arbitrage less profitable.
- Bots, bots, bots everywhere – there’s always a chance that some of the traffic is generated by bots. As you can imagine, this kind of traffic is somewhat difficult to work with. The best you can do is to just let it go.
To summarize, one can say that the routine of an arbitrator is accompanied by long and hard learning and constant monitoring of information. Only the hardworking and persistent will find themselves in this field.
But when one need to get people to promote something or someone, it is almost a win-win option.
