Finding a profitable niche seems to be the biggest problem with adsense arbitrage, or affiliate marketing for that matter. I took some time out today to write this article. It includes screen shots, so I'm gonna have to point you to my new blog. The article focuses on finding a profitable niche using the google keyword tool and exploiting the differences in position vs. price. Read Here Feedback and reps appreciated!
Not a bad article. I'll definitely be tinkering with some of your techniques in the future. One of my biggest problem with AdSense arbitrage in particular is keeping from getting smart priced. Have you run into that problem yet?
Brief article but explanied well and aided by images. Thanks for sharing your info with us. Green rep placed.
I don't think I've been affected by smart pricing. My payout has been pretty consistent for several months. It's actually gone up about 20% in the last 2 months, so maybe I've been moved up on the smart pricing ladder. Since we don't know the factors in the smart pricing equation, there's no way to really measure or test for it. However, following in the spirit of smart pricing, I always base my site's content on selling the affiliate product first, then do the usual optimization for the niche's keyword. Big thanks to everyone for the compliments. Based on the feedback I get from this article, I'll try and write another "chapter" covering other aspects of doing niche marketing for adsense and affiliate programs. In the end, I should have a nice little ebook that I can give away.