Most people may not have heard of this term before they read this article but before you read any further there are several terms that need to be explained. The first one of these, pay per click, many people will have heard of or at least be able to guess at what it means.
Pay Per Click
Applied to the internet this means that for every click on your advertisement on a web page or through a search engine you will be paid for it. However, there are costs to all this for you as well. For example if you decide to advertise through Google AdWords you can set up this form of advertising quite easily through Google. You will be guided through a registration process step by step and you can even phone a Google representative who can help you further but although you will make money for each time someone clicks on an advertisement of yours you will also have to pay for each click too.
Pay per click is used to make your advertisement appear higher in the listing for a Search Engine and this means that you are more likely o have your advertisement noticed.
The literal definition for an arbitrage is concerned with trying to make a profit through exploitation of different prices or markets. That sounds a bit complicated doesn't it? Now how is this all connected with pay per click?
Pay Per Click Arbitrage
This method of advertising can make you more money as you are not just benefiting from advertisements on one web page or Search Engine. For example, a person setting up advertising on the internet might buy their clicks from Google or Yahoo and then get rewarded by redirecting people to another set of advertisements on another website. By doing this, they will be paid more money and thus gain more profit. In other words you are creating low cost advertisements to attract people who will then click on high cost advertisements and thus make you more profit.
It is possible to get paid more for this method of PPC by signing up with a secondary Search Engine e.g. Lycos, Ask.com. There are advantages to this approach as these search engines often give you a better return in your investment.
You must then advertise with PPC to be able to find the customers who are most likely to click on your advertisements. If enough people click on your advertisements you can make a nice profit. In order to make the most profit you need to do some very careful research into what areas to place your advertisements in. For example, you could start really small, with a one page website with advertisements and then expand it to more and more as you get the idea of what you are doing. It is also a good idea to pick a relevant domain name as this will also help to attract more people and thus more profit.