Copyright Accelerated Ideas 2007 Earn Revenue Sign up for Google Adsense Recommended Bookmark this Page Advanced - Adsense Arbitrage Introduction Arbitrage is a classic technique for earning money by buying cheap and selling expensive. What you lose in one hand is almost nothing compared to what you take in the other. This idea has been around many years and its mostly played by stock brokers and gamblers. Just like any other supply and demand theory, Adsense is no different. Using a combination of Adwords and Adsense you can set up an Adsense Arbitrage earnings scheme. What tools do I need To use arbitrage you are going to need to sign up for Adsense and a advertising scheme such as Adwords. Adwords is probably the best choice since the number of people using Adsense is so huge that you can test and buy cheap keywords quite easily. How do you buy cheap Buying cheap means creating Adword ads that target unpopular keywords that Google will let you buy for a cheap price. Finding cheap keywords that still provide good page impressions is the tricky part. If you want to buy cheap you will need to use a large number of keywords to get your adverts shown. Also, buying cheap probably means your ads will not appear on the Google search page. This in itself is not a major problem for most people who use arbitrage. Selling expensive The real key to arbitrage is to have a landing page (web page) that is full of high paying keywords. The type of ads selected by Google for this page will most likely pay a large price per click. The technique of losing $0.1 and gaining $10.0 is a very profitable one. The optimization and ad layouts on the landing page must be almost perfect if you are to succeed with Adsense arbitrage. Which high paying keywords High paying keywords are well known in the Adsense world. We have constructed a list of them on our highest paying keywords section: Highest Paying Keywords It seems that mortgages and insurance are by far the highest paying keywords!! But..it doesn't work ! Arbitrage has been known to make people very rich through Adsense, whilst at the same time driving publishers crazing. Recently however, Google have introduced a scheme called 'Smart Pricing'. Thankfully, this effectively kills off arbitrage within days. Smart Pricing Smart pricing is Googles answer to arbitrage. Publishers using Adwords (or similar) to attract people to high paying landing sites have one key giveaway - CTR. If you remember CTR is short for click-through-rate. Basically how many clicks per page impression. If your site has a high CTR than you will be subject to Smart Pricing soon enough. Smart pricing ensures that the price per click that you receive is greatly reduced compared to the average price people bid for. We have heard stories where Smart Pricing has reduced the cost per click down to around 10% of the maximum cost per click! This is an amazing drop. Essentially, the keyword cost (using adwords) becomes higher than the average cost per click on the landing page. As you can imagine this change leads to a lose in profits not a gain. See our diagram below: Getting banned Participating in arbitrage runs a high risk of getting banned. Nearly all Adsense publishers hate arbitrage and that also includes Google. If you are caught using arbitrage illegally then you will face a ban from both Adwords and Adsense. Is there life in arbitrage Yes, but barely. If you do decide to use arbitrage then you will need to create an Adwords (or similar) campaign with the cheapest keywords possible and keep your CTR down. If you can achieve this balance and avoid Smart Pricing you will become a very rich person!! How can I stop arbitrage sites from advertising? Your best defence against arbitrage is to use the competitive ad filter for Adsense. This tool allows you to enter URL's of pages (or even domains) that you want to block from showing Adsense on your website. This is an essential technique if you want to keep your eCPM as high as possible. Theres not much use in 10 clicks for $0.1 when you could get 1 click for $10.0. You should try to weed out the Adsense arbitrage sites as often as possible on your site. Sections Popular Adsense sections ranging from 'what is Adsense' to 'using arbitrage' Home Basics 1. What is Adsense 2. How to sign up 3. Adding ads to your page 4. Editing ads 5. Adsense reports 6. Adsense payments 7. Adsense rules 8. Banned from Adsense Optimization 1. Ad placement 2. Ad formats 3. Ad Colours 4. Content vs ads Advanced 1. Heat maps 2. Adsense Arbitrage 3. Competitive ad filter   Common 1. How much can you earn 2. MFA sites 3. High Paying Keywords 4. Alternatives to Adsense Tools 1. Colour Pallettes 2. Adsense preview tool 3. 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