I read Shoemoney's blog posts that was mentioned above. Great info and good research there! Anyone who wants to do arbitrage should definitely read those posts. There are a lot of skeptics out there but that's what keeps things profitable for those of us who are "arbitraging". I've been doing it for over a year... still profitable.
There is a possibilty of using cheaper alternative like ABC Search or SearchFeed to drive visitors to the Adsense site...Buy Low, Sell High
I asked the Director of Advertising Sales and Operations at Google at a marketing forum at the University of California, Irvine about buying traffic from Adwords and selling traffic through Adsense and she said no problem. She mentioned that's what the very big sites were doing. It takes some very good niches which may mean a large amount of experimentation but it can be done.
Does anyone know if it's possible to track the AdSense clicks where users were referred from AdWords? This would be very useful other than making guesses by setting up AdSense channels and viewing the difference in earnings when sending AdWords traffic to an individual page.
I use Google AdSense Tracker (http://www.related-pages.com/) and can see the referers and it's easy to pick out adwords clicks based on the the URL query string in the refering address.
Analytics has full integrated tracking for adwords. You can also use javascript to track adsense clicks too via Analytics.
But to have an affiliate network, one must have a website or a blog? Right? Or is it O.K. just with adwords...comment please
At the minimum, I think you'd need at least a landing page with your affiliate link, which would then redirect to the merchant's site. As I understand it, it used to be possible to include your affiliate link within your AdWords ad text, which would send the user directly to the merchant's site. Some time ago, however, AdWords changed their policy so that only one advertiser could promote any given site. This would mean that if the merchant (or other affiliates) were using AdWords, only one of the ads would be displayed. HTH, Sam
Use a third party tool like AdsenseGold in combination with channels in Adsense reporting. AG will tell you exactly which ads were clicked and even the search keyword that led the visitor to your page. You can then use this data to optimize your AdWords campaigns or SEO efforts. I use this technique and have been making a consistent profit for over a year. Hock