Traffic arbitrage is a highly promising business model, which includes the purchase of traffic and its subsequent resale in order to make a profit due to the difference in price.
Arbitrageurs or webmasters drive traffic to advertisers’ sites or apps and receive a commission, usually a percentage of the sale. It is important to note that arbitrageurs do not receive any funds from advertisers in advance, and earnings only occur when the revenue generated by the engaged users exceeds the costs of advertising and promotion.
“Three Ways of Traffic Arbitration”
Traffic arbitrage can be considered in the context of three different approaches:
White lead generation: This approach involves promoting permitted offers that comply with the law. For example, redirecting users to the website of an online cosmetics store with an indication of its offers.
Gray lead generation: This method involves a trick from the webmaster to entice the user to click on creative ads. Redirecting traffic can be done with succinct and attractive ads using images.
Black lead generation: This method uses any means to deceive users. This usually includes spam, aggressive advertising, clickander, and links that redirect to malicious or adult sites.
“How to Earn on Traffic Arbitrage”
If you want to actively earn money online, traffic arbitrage is one of the most effective ways. The principle of operation is as follows:
Buying traffic: Advertisers are looking for potential customers – users who will visit their websites and purchase goods or services.
Arbitrageurs and reselling: Arbitrageurs buy traffic and redirect it to media platforms using methods such as targeting or contextual advertising. The amount of payment for traffic on media platforms exceeds the cost of purchased traffic. The difference between these costs and income creates a profit for the arbitrageur.
Let’s consider this process in practice. Let’s say you create a pay-per-click advertising campaign. Let’s say the cost per click is $0.50 per ad. When you get traffic, you can sell it at a higher price, like $1.50 for each click on your banner ad. So your profit is $1 per click.