After reading some posts here about arbitrage I decided to give it a try. I registered a domain, wrote a 700+ words article, optimized the page and the article with my keywords (supposed to pay between $1-11) and put some ads on my page. My template : 750px wide Title two 336x280 blocks article 728x90 block I started to send traffic to my page, bidding no more than 0,05. My CTR is really high (more than 50%). Yesterday I received 15 clicks and only earned 16 cents. But some ads I can see on my page are the same in first Google serp. How can I improve my earnings since the ads seem ok and my CTR too ?
Only if this were so easy we would all be floating in money. The ads that Google displays on a page is the result of a complex algorithm that takes into account its history, backlinks, domain quality, past conversion rates, and others that I do not even know about. That is why while it might appear that advertisers are paying $X for a keyword, those ads appear only on high-quality pages. The page like yours will continue to get mostly penny ads. This is how it works. For example, the going rate for a keyword maybe double digits but I can still bid a few pennies. Google will find some low-quality websites for these ads and that is why it is not possible to get rich overnight. So build your website with rich content, backlinks, etc. and then over time much better ads will appear.
I briefly tried arbitrage - didn't work for me either. I think I may have just about broken even. The best way to make money is to build on you (free) organic traffic. Cryo.
I don't understand how the arbitrage guys do it.. I am struggling to make a profit using Adwords to send traffic to a quality page with an affiliate offer on it.. Like SKWeb said, if it was easy we would all be floating in money..
Just because the top adwords advertiser bids up to $11.00 does not mean that they will actually pay out that much on a click. Don't forget that Google takes their cut and that smartpricing may come into play as well. If you are able to advertise in what I assume is the same niche for $0.05, then others are able to advertise extremely low as well.