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Arbitrage Case Study
This case study was one of the first projects that I got into. The concept is very simple and for the most part, makes sense to me.
Here is a link to a Potty Training web page that we did. We were able to potty train our child very quickly, and this is a page that kind of explains what we did.
Here is another link to a page I did on sleep apnea. I think the other page I did on potty training was better than this one. Probably because I had to start from scratch with the apnea page, but knew what I was talking about with the potty training.
Anyway, the concept is that you create a web page or small site that is built with the sole purpose of placing adsense ads on. If you’re not familiar with adsense, it’s the “content network” equivalent of Google’s AdWords program. I’m sure you’ve seen them when you’re surfing the web and you see a callout box or a small section that says something like “Ads by Gooooogle” or something like that.
Publishers (people with websites) can earn money by allowing Google to place ads on their website. If someone clicks the ad, then the owner of the website will get some money from Google. The more competitive and expensive the keyword that triggered the ad, the more money the publisher will make for a click.
With arbitrage, the goal is to find profitable niches by doing extensive keyword research and finding a niche where the competition for keywords isn’t so stiff that you can’t afford to drive traffic.
Anyway, the link at the top of the page here is going to give you a really excellent view of how the whole thing works.
Check it out.
Chris Hackett
Hia!
So everyday I try and visit my blog here to see how things are going, and to see if anyone has left any comments. So far, no Comments 😦
Oh well. I can handle it.
One thing I did notice is that I get a good many clicks from people who have punched in “1shoppingsite.com” into google or some other search engine. Interesting.
If you missed the earlier blog post, basically the deal with 1shoppingsite.com is that they have scripted a “storefront” to Clickbank products, and you give the 1shoppingsite.com script your clickbank ID, and they in turn give you a the storefront where all the affiliate links for all the products are your affiliate link. Pretty cool.
So I got to looking around, and I noticed that on the 1shoppingsite.com site, there are adwords, and during the setup process, you’re supposed to enter your adsense code, and I guess they give you credit for the adsense clicks too.
I’ve been thinking a good bit lately about the adsense thing. In fact, I originally started my journey by thinking about adsense. I saw some ad or promo about how to do this stuff called “Adsense Arbitration,” where basically write content for the purpose of getting high value adwords ads displayed on your site. And then you use PPC to drive traffic to the page. The intention is that you pay $.10 for the click to get the visitor and $.15 for an adsense click. I don’t know if it works or not. I did write one or two articles and try to make it work. I’ll write about that in a different blog.
Anyway, so back to 1shoppingsite.com. So seeing all this stuff from them got me to thinking about how I could turn that into a money making idea.
My wife is looking into community websites, and I’ve always been a big fan of creating websites where the users generate most or all of the content. Stuff like job / resume services or dating sites. I was thinking about making one on American Idol!
Then you monetize the site with adsense. I don’t know how many people are reading this, but if you’re willing to partner up with me, send me an email and let me know. I’d like to launch a community website and monetize it with Google Adsense.
I’m thinking of doing something just like the 1shoppingsite.com deal, and we give that away to ClickBank affiliates and folks that want to make money on-line. Except we keep the revenue from the adsense ads!
Ok, I’m going to go write an entry on the Adsense Arbitrage method ..
Chris Hackett
Wow.
This is a tad old but still ridiculous.
This guy created an on-line dating / match-maker / adult friend finder type of site, made it free, and salted it with un-obtrusive adsense ads.
I’d say it’s working for him.
Chris Hackett
We’re going to find out. At least we’re going to find out if purchasing traffic from http://trafficcircuit.com/ is a good idea. Notice that is NOT an affiliate link, but just links directly to the site.
I’m about to purchase like 100,000 “visitors” from the site to see if we can get any conversions or not.
Here’s the site where I’m sending them.
I’m not entirely sure what to expect yet, and I’m not sure what I’m going to learn about it, but I guess we’re going to find out!
Obviously I’ll post the results here in my blog as the hits start coming in!
Hia Again,
Well, today I took like 5 minutes and set this thing up. You know most of the time when I sign up for this kind of thing, I’m really just checking it out to see what other people are doing. I think it’s interesting to see how other people are trying to make money.
This site walks you through a couple (like maybe 5) steps where you enter your name and your clickbank affiliate ID and that kind of thing. They then build this site for you.
I’m still not entirely certain how the provider of this stuff makes money. From what I can tell, all the links for product in the store end up with my affiliate ID in them, so I make the money from affiliate sales, if there are any. Also, during the sign-up process, they asked me for my Google AdSense publisher ID, so I assume that the adsense ads that are displayed will end up being credited to my account. Who knows.
Now I don’t know for sure that this is their strategy. Maybe it is, maybe it’s not, but here’s what I would do with this idea:
1. Hire an eLance.com or RentACoder.com person to create a “template” website and scripts that will automatically generate the appropriate clickbank affiliate links. So that you can spam the world with something like “Hey, let me give you this FREE massive ClickBank online storefront, where you can instantly be offering thousands of products, ALL with YOUR affiliate links! Be ready to publish your store in like 5 minutes”
2. Advertise this “free cash machine” on Adwords, ezines, safe-lists, etc, trying to get as many people as possible signed up.
3. Use my own AdSense publisher ID to display adsense ads on all these other peoples free storefront.
Maybe I’ll give it a shot. If I do, I’ll post my progress here!
Chris Hackett
Ok, this entry is all business 🙂 No idle chit chat. This is how I set up my AdWords Account for a campaign on Government Records.
Step 1: Create and Download Landing Pages. This particular program has a cool form that affiliates can fill in and they’ll generate a nice little zip file of a bunch of landing pages that you can upload to your own server / domain. I did this, and gave it my affiliate id and a google conversion tracking code, so I can tell which keywords are actually creating sales.
Step 2: Test the Links. Never, and I mean NEVER, set up and launch a campaign or adgroup of any kind until you’ve tested the links to make sure they work and that you’re the affiliate when you get to the clickbank checkout page.
Step 3: Create the Adwords campaign. For this, I created a simple campaign called “Government Records”
Step 3: Create an AdGroup. For this step, I selected one of the “niches” that are available in this government records program. For the sake of simplicity, lets use “birth records” as an example. I’ll create an AdGroup called “Birth Records” It’ll ask me to write the ad, and I’ll use something targeted like “Search Birth Records Now” and “Instant Access to Birth Records” etc. I enter the appropriate display and destination url’s
Step 3.A: Remember that I said the affiliate program would create a bunch of landing pages, so I make sure I link directly to the landing page that is for “birth records,” This landing page has been optimized for certain keywords related to “Birth Records” This will increase relevancy, and hopefully my CTR, which will in turn result in a lower CPC. Yay.
Step 4: Add Keywords. Once I have saved the AdGroup, there’s a keyword tool link in the next page Google displays which will allow you to seach for and add additional keywords. Click this tool, and enter “birth records” in the keywords box, make sure “used symonyms” is checked. When you click next, Google will go out and look for keywords.
There will be two columns of data. One will show the search volume for the previous month and the other column will show keyword compitetion. Click the heading for ‘keyword competition” until all the data is sorted so that the kewords with the lowest competition are displayed at the top.
You’ll pretty easily be able to see a handful of keywords that are relevant to your ad and your program that have little or no competition.
Add these keywords and off you go!
Lather. Rinse. Repeat!
Hia All,
So today I got to thinking about an old campaign that I used to run for a program called Government Records. I think it was pretty successful when I ran it the first time. The problem the first time was that I didn’t make but a single Adgroup.
I used the most awesome tool, Keyword Elite to create this massive list of keywords, and then I just jammed all those keywords into a single AdGroup.
At first it worked great, and I probably made like 10 sales in the first day or two.
Then I got the GOOGLE SLAP! Whoa. What the heck was that. All of a sudden all these keywords that I had been paying like $0.25 each for, all of a sudden are inactive and it is telling me the minimum bid is like $10.00. Yikes.
So after doing some research, I learned that it all comes back to RELEVANCE! Google wants everything to be relevant.
While Keyword Elite is really an awesome tool for creating and managing large lists of keywords, the user (that’s you), still has to do some work to make sure that your keywords are relevant.
So now, what I do is I try to group relevant keywords together into groups of about 5 to 20 keywords and put them into their own AdGroup. This way, I can have a nice, tightly related group of keywords, and I can write an Ad that is more closely targeted (also RELEVANT) to the set of keywords.
Also, you should always be split testing your ads. At all times, you should have two ads running in the adgroup. After every 100 clicks or so, you should look at the CTR (Click Through Rate) for each of the two ads. Take the one that is performing poorly, and re-write it to see if you can make a new ad that beats the current “winner.” This way, you can constantly be improving your ads, and CTR.
Remember, Google will reward you for a higher CTR. In the eyes of the Google Algorithm, a high CTR means your ad must be relevant to the searchers terms, since searchers seem to be clicking on it a lot.
If you’re interested in learning more about this stuff, you can get on the mailing list for my upcoming course on how to make money on-line with Clickbank and Google Adwords. It’s going to be a solid, step-by-step guide on how to make money online. I’ve made a bunch of videos and the whole bit to walk you through everything step by step. Check it out
Alright,
So I think in my last entry I talked about the fact that I was about to go meet this fellow about the company he worked for.
Turns out the company name is Hi-Tech Pharmaceuticals and they have an awesome line up of products from weight loss to muscle and strength, general healthcare and sexual performance.
I’m really excited about having an opportunity to work with them. They have excellent payment terms, prices, and loads of good marketing materials already written up.
I’ll write a separate blog entry outlining my exact strategy for this.
So this Blog is of course another strategy for me to try out.
I’ve seen lots of posts in various forums where a “newbie” comes in and makes a complaint about not having a website or not knowing how to use html. OR maybe they’re complaining that they haven’t made any sales, and adwords is starting to eat them alive.
Almost always, someone pipes up and suggests they get a blog and pepper it with affiliate links. They’re always claiming to be able to make some sales that way.
So here I am. I guess this whole blog will be a “case study” and I’ll let everyone know how it’s working out.
Chris Hackett
I think that once you’ve gotten the hang of the Affiliate Marketing strategy promoting other folks product, it would make sense to write and publish your own product.
If you sign up at ClickBank as a publisher, (which I haven’t done yet, but plan to), I think they only charge you like $50.00 or so to get your account as a publisher set up. Then they’ll manage the affiliate program for you. They’ll process credit cards and do the whole bit. I think it’s a good deal.
To me, it’s the logical next step in the make money online pursuit. It goes back to the ol’ ‘I’d rather make 1% of a hundred other people’s effort than 100% of my own effort.” There are quite literally thousands and thousands of people looking for products to promote on ClickBank. Just think about the volume of business you could do if you could tap into all those people.
There are a couple keys to being a successful publisher at ClickBank:
1. Remember your audience. When you’re promoting your product to affiliates, remember that you’re not promoting your product anymore, your promoting a BUSINESS OPPORTUNITY. You gotta convince other folks that they’re going to make money by promoting your product. Don’t spend too much time convincing affiliates how great the product is.
2. Provide Support. You gotta let your affiliates know that you’re there for them, and that you’ll support them. You should provide them with keyword lists to use in the PPC campaigns. You should give them banner ads, and you should pre-write some PPC ads (both text ads and graphic ads) that are already formatted and ready to go at the major PC places like Google and Yahoo.
3. Show, claim, or demonstrate high conversion rates and low return rates. When you’re an affiliate, you want to know that sites convert. I want to be sure that if I send 100 people to your site, that at least one or two of them are going to turn into a customer. Conversion rates are very simple to calculate. If you send 100 people to a page, and 2 of them make a purchase, the conversion rate is 2%.
I’m currently working on my own eBook that’s all about making money on-line. I’m planning to market my book as a “Foundational Principles” type book that’s going to teach you the fundamentals that you need to be successful.
Most of the eBooks and programs out there are so over hyped and make really outrageous claims about $100,000 a month clickbank accounts. I’ve never directly seen any of these accounts, and I’m sure they probably exist, but without the correct foundation, there’s not much chance that you’re going to end up with anything even close to that.
So keep your eyes open. Hopefully I’ll have my course ready to go soon. It’ll be complete with a video series and everything! Hopefully it’ll be the standard 101 introduction for anyone who wants to make money on-line.
A lot of these other books and programs cost about $80.00 give or take. My attitude toward that is that while probably 80% of the material is the same old stuff re-hashed, it’s actually pretty likely that there is a tip or trick or idea in the course that’s going to help you earn more … IF you have the right foundation in place. That’s where my book comes in place.
So keep your eyes open and I’ll let you know when the book is ready to go!
Internet Profits Journey 