Good day people. Just pondering and wondering what you guys think. Every time I browse the top auction website - yes you know which one - on websites for sale virtually every advert at the bottom asks a question which is something along these lines - SPEND $1 ON G ADWRDS AND GET $3 OF BUSINESS - Now this talk is becomming very common an a large amounts of adverts! I understand that different businesses vary greatly but I have seen this advertised on websites ranging from dropshipping to adult lingerie also adsense websites - you know those downloadable jobs that you can buy for $4.99 or whatever. In my experience for adsense related websites G adwrds is not going to increase my earnings by 2/3rds. Maybe it is just me but I seem to make a loss when I use this service. Unless you pay for adwrds with a very low cpc and advertise something completely different inside such as mortgages , health etc but surely this would be against the rules we all have to adhere to extensively? Let me know what you think . I thinks these guys are just after a quick sale trying target unsuspecting entrepreneurs. Have you seen those watch TV for free the rest of your life websites for $10.00. Are these a scam or are they genuine?? Sorry to incorperate a few topics but I think something needs to be done about these people. Iv not been stung - YET, thats why I ask??
I think what they are referring to is, if you spend $1 on a carefully inteligent ad campaign with choice of the right keywords, ad copy, etc with Adwords the return will be $3.
How is this done? Are you not paying the same for adwrds as you get paid for adsnse . Not every customer use your adsnse?
I think there is do have some people make money from adwords, or google will be bankrupted. However, most of the cases I heard are that people didn't make money from adwords. So I think the key factor is the service you provided and keywords you selected.
Makubwa - every time a visitor clicks on your ad and visits your site, you pay AdWords for that click ($1). If on average, those visitors end up spending $3 on your site, you have achieved a positive ROI. Now of course not every single visitor will spend money, but if you have 100 visitors (costs $100 at $1 per click), and 20 of them spend $15 = $300, so an average of $3 per visitor ($300/100 visitors = $3). See?
This sound slike Google Arbitage( may not be spelled correctly) A lot of people do it with good success but you really have to know what you are doing with adwords for it to work out correctly. Bruce
In theory, it's simple. Bid on a keyword at $0.05/click. Spend $1.00. Net 20 visitors. One of those 20 visitors needs to click on a link that pays $3.00 per click via Adsense (if you're doing literal Google arbitrage). For instance, you buy traffic from they keyphrase ("best attorney" costa mesa ca) <-- i just did this search. The top result was this one: California Attorney Finder, Attorneys in California, List of ... That page is found here: http://www.attorney-lawyers-tax-attorneys.com/ca.html If you click on one of those adsense links, their advertisers might be paying a pretty high rate (attorneys are notorious for high PPC bids). For instance I just checked the bids function on Overture for the keyword "attorney"... The top bids include $2.85, $1.45, $0.93, etc. On average, adsense publishers net 20-50% of the bid price. There. I just saved you from having to buy an ebook.
Just to get terms straight Arbitrage is an instant, riskless, profitable transaction. In a financial market - if you could buy a security and immediately sell it at a higher price to someone else with no risk, that would be arbitrage. That doesn't happen for regular folks because computer trading models and badazz traders do it continuously in very small amounts. People are obviously attracted to arbitrage opportunities, and that shifts supply and demand to bring buyers and sellers together at a price that removes any potential for arbitrage. So typically arbitrage potential comes and goes quickly in efficient, liquid markets. Google arbitrage is approaching pure arbitrage, in that you could buy adwords traffic and nearly instantly convert it to higher paying adsense clicks with the right strategy. Adwords and adsense have brought a lot of liquidity to the ppc market, so much of the low-hanging arbitrage oppty is gone. However, it still exists --- the ppc market doesn't even approach the efficiency of financial markets... evidence of that is how much of a slice the market-maker (Google) is able to take for bringing buyer and seller together.