Arbitrage Market Research
I tell ya, I never thought the blog posts and WickedFire threads about arbitrage would blow up the way they have, but I guess that’s just the power of webmasters and their constant thirst for knowledge in making cash online, or “the next big thing”. I decided to do some market research, a bit more extensive than I first did when I blogged about it, to really see what was out there and if there were any signs that the market was changing.
Good news everyone. Arbitrage 2.0 is nowhere close to being diluted. I am just shocked to see how many old arbitrage pages and full sites there still are. When I refer to arbitrage 2.0 I’m talking about sites/pages that are full of content and have some adsense or YPN ads here and there, but that’s it. Not referring to those old arbitrage styles where it’s owned by some domainer buying cheap clicks and sending it to some script page with a makeshift search engine xml feed where someone clicks and they make $0.30 from it. Let’s be realistic, if you go that route you can make a lot of money I’m sure, even with Google Adwords and their new crackdown on those types of arbitrage sites. But it’s such a lazy “let’s see what happens” approach. I really do love how arbitrage 2.0 is done by so few people and how it’s such a long term, cheap way of making money.
First off, very few people blog about or even know about it, so that’s always a good sign. Second, with the tens of millions of niches that exist out there, there is just SO much room to work with. Even if you find some reeeally small niche that gets very little traffic and advertisers, you can still make bank on it, and probably contact those advertisers and sell them on cpm buys for a blog you can make or for your arbitrage site too.
End result, the market is still completely untapped. Hard to believe too, because I honestly thought with all of the research I was doing that I would come across some really nice looking pages that rival the ones we use, but to no avail. Good for us, being the small crowd of arbitrage 2.0′ers that is. I think over the next two years or so there will be a bigger shift and you’ll see a hell of a lot more sites out there that do it, but nowhere near the millions that exist for the current arbitrage crap out there. So if you are waiting to see what happens with other people, pop onto WickedFire and just look at all of the guys on there trying it out with $100 or less, and you can see that it works on a small and medium sized scale already.
One day I will probably end up posting up a case study of some sort on how arbitrage 2.0 went from a little nothing idea, and transformed an entire industry, because it definitely has the power to do so. It’s good for the publishers because it makes us some easy bank. It’s great for the 2nd tier crappy ppc engines because they still think their traffic is worth something, it’s great for Google and YPN because they are able to deliver targeted traffic to their advertisers, thus increasing their advertising revenues, and it’s pretty damn good for the searcher himself, because instead of being shot to some other lame looking makeshift engine, he can read through an article two of content and clickthrough to an advertiser who can probably facilitate his needs better than we can, thus getting what he actually searched for in the first place. Yay, winners all around.








J-
I’m confused. From what you’re saying, an Arbi 2.0 example would be stevepavlina.com, or problogger, where an individual dives into a subject and goes full steam with content and a little advertising. Didn’t sites like this exist first before cats started “buying cheap clicks and sending it to some script page with a makeshift search engine xml feed where someone clicks and they make $0.30 from it.”?
Hey Jon,
I wandered over after seeing your link on Andrea’s blog.
I’m a content blogger and affiliate mkter, and i want to get more leverage out of my efforts.
arb2.0 sounds like something that could turn out to be a monster and i’m figuring out how to incorporate SEM/PPC efforts to boost my aff mktg efforts.
esp since the SEs are shifting towards content-based results, your point abt “it’s pretty damn good for the searcher himself…he can read through an article two of content and clickthrough to an advertiser who can probably facilitate his needs better” is something i’m shooting towards.
look forward to your case study (and in the meantime, i learned a heck of a lot from chris lingle’s thread in WF).
cheers,
The text book definition of arbitrage is either a risk free investment or an opportunity to set up a portfolio at zero cost, but which is guaranteed to either increase in value or remain at zero.
The whole ‘Arbitrage 2.0′ idea is counter to what arbitrage is.
By putting hard work and, God forbid, real content together with ads and paying for google or YSM advertising you expend resources (time and money) meaning your risk is increased exponentially.
True arbitrage is what you described as being the “Lazy” see what happens approach. If any hard work is involved, then you just can’t call it arbitrage.
Maybe I’m confused about what arb 2.0 really is but from what you describe above it seems like your just giving cheap commercial web development a fancy name.