Traffic Arbitrage for Beginners: Peculiarities, Advantages, and Main Principles of Work
Many new ways to earn a living appeared thanks to active web development. Today traffic arbitrage is one of the most profitable options for making a profit. Incomes of experienced arbitrage specialists equal to tens and hundreds of thousands of dollars.
Many users are aware of all the advantages of arbitrage but do not understand the main principles of this work. Let us review the notion of traffic arbitrage and peculiarities of this way to earn funds.
Traffic arbitrage: main features
and principles of work
Traffic arbitrage involves buying and subsequent resale of Internet traffic aimed to make a profit. For example, the arbitrage specialist buys 1,000 clicks for $50 on one resource. Then he or she resells this traffic to another platform for $100. The difference between these sums makes the profit the specialist will get.
To start earning money, the arbitrage specialist needs to participate in an affiliate program or a CPA network.
- An affiliate program is a form of a business partnership between the seller or service provider and affiliates. Internet stores, online casinos, and other platforms act as advertisers. They pay a part of their income to arbitrage specialists for customer acquisition.
- СРА networks are services that act as an intermediary between the supplier of goods and services and arbitrage specialists. They contain a great range of offers from different advertisers. For intermediary services, they get a certain percentage of affiliates’ revenue.
Traffic arbitrage is done step by step, and here are the stages it involves:
- Registration with an affiliate program or a CPA network. The arbitrage specialist can work with several affiliate programs or networks at the same time. As a result, he or she can drive traffic to different resources and make a bigger profit.
- Choice of an offer. There is a wide choice of commercial offers from different advertisers in the market. Among other things, the offers are available in such niches as finances, products, traveling, dating, software, iGaming, etc.
- Choice of sources for traffic acquisition. Traffic sources fall into free of charge and paid ones. The first type refers to platforms that belong to the arbitrage specialist (own website, blog, groups, or communities on social media). Paid sources include social, teaser, and banner ad networks, differently themed websites, contextual and targeted advertising services.
- Launch of an advertising campaign. At this stage, the arbitrage specialist develops functional creatives and buys ads on different platforms. Depending on the chosen traffic sources, it may be necessary to register with a teaser ad network, arrange a collaboration with the administrator of a public page, set up accounts at Google AdSense or Yandex.Direct, etc.
- Analysis of results. Successful arbitrage specialists regularly analyze their work. In such a way, they define which creatives work efficiently and which sources are the best option to drive traffic to a certain offer. Relying on this information, they take decisions regarding the introduction of changes in the advertising campaign.
- Making a profit. The arbitrage specialist earns money when the attracted users go to the advertiser website and/or make the targeted action there (for example, register, make a deposit, a purchase, or download an app).
Pros and cons of arbitrage
At first thought, traffic arbitrage may seem to be a simple way of making money. However, this activity has both advantages and disadvantages.
Let us review the keynote pros of traffic arbitrage.
- Remote work. The arbitrage specialist can work from home or any other comfortable place be it a co-working area, cozy bar, or sea shore. The important thing is to have a computer and an Internet connection.
- High income. Seasoned arbitrage specialists can earn several tens or even hundreds of thousands of dollars per month.
- Wide range of markets and niches. The arbitrage specialist can choose from a great variety of fields to make money on. They include gambling, products, nutra, finances, dating. Besides, it is possible to work with traffic from different countries.
- No need to have your own traffic source. The lack of a personal website or a popular blog is not an obstacle for the arbitrage specialist to drive traffic successfully from third-party sources and make money on that.
- Career growth prospects. Successful professionals form arbitrage teams, develop their own websites or affiliate programs.
- No managers. Freelancers independently plan the work schedule, weekends, and vacations. They work without directions of managers and assistance of colleagues meaning that they do not have to subordinate to anyone and share income with the team.
As for the cons of the arbitrage activity, the following nuances can be distinguished:
- a high degree of responsibility. The income of the arbitrage specialist depends on the results of his or her work. If you are careless about your job, you can earn nothing or even go into the red;
- the risk to lose your money. Arbitrage specialists spend their own funds to buy traffic. It sometimes happens that they fail to return the invested sums. You should take this into account before you spend all the budget on the advertising of a certain offer;
- market variability. Internet platforms often change the moderation rules for ads, which may make the work complicated. For example, the approach that helped to gain 1,000 leads yesterday can turn out to be ineffective today.
Some bits of advice to starting
We have collected the top five recommendations for people that have just started to familiarize themselves with the world of arbitrage. If you follow these bits of advice, you will be able to set up efficient operations and make money quicker.
Study the basic theory of arbitrage
A starting arbitrage specialist has to understand all principles of the work. Not knowing the basic theory can cost you the loss of big sums. For this reason, it is important to study the existing verticals and choose the niches that you understand well. Besides, you have to get insight into the types of offers and work with different traffic sources. To develop functional advertising creatives, the arbitrage specialist needs knowledge of marketing and advertising.
Practice and test
Theoretical knowledge plays a vital role but the lack of practice can make it difficult to understand in what direction to move and what actions to take. Therefore, at the start of your career, try to work with different sources, train to create ads, and test new approaches. Probably not each of your steps will be successful. However, only by trial and error, you will be able to understand which methods work better and bring higher profits.
Spend your budget reasonably
Experts advise arbitrage specialists to start working with small advertising budgets. Big investments made at the start may not pay off. For this reason, it is better to accumulate experience first and to raise the stakes later.
To become a successful arbitrage specialist, do not be afraid to experiment. Come up with your own non-standard solutions, develop unusual creatives, and master new traffic sources. This will help you to achieve your goals faster.
Adopt the experience of your colleagues
Today there are different forums, blogs, and specialized chats for arbitrage specialists. Such platforms allow you to get recommendations from more experienced colleagues.
As for top representatives of the arbitrage community, you can meet them at industry-specific events where attendees have the possibility to talk to the best experts and to negotiate possible collaboration.
You will meet arbitrage gurus in the iGaming vertical at Minsk iGaming Affiliate Conference that will take place on March 5, 2020. The event will bring together leading experts in affiliate marketing.