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Difference between Arbitrage and AM? (4)


02-20-2015 04:19 PM #1 ybyalik (Member)
Difference between Arbitrage and AM?

I see a few people here talk about doing arbitrage...but isn't that the same thing as AM? (buying visitors, sending them to a landing page to buy something - you make difference between what you get paid by the advertiser and what you pay for traffic)


02-20-2015 06:51 PM #2 bbrock32 (Administrator)

Arbitrage is referred when buying the traffic from one source and re-selling to another one for more and making a profit.

AM is buying traffic and sending to an offer.


02-20-2015 07:26 PM #3 caurmen (Administrator)

Arbitrage is usually defined as taking advantage of price differences on the same thing between two marketplaces.

For example, if you're buying cheap pop traffic in one place and selling those pops as traffic in another, for a profit, that's arbitrage.

AM, meanwhile, involves using that traffic to drive conversions: rather than taking the same thing and reselling it, you're using that one thing plus your own expertise and intellectual property to generate other things, for more than the cost of acquiring the first thing.

The difference between straight arbitrage and AM is the difference between buying coal cheap from a mine and selling it to industry for a profit, and buying the coal from a mine then using it to run your power station, from which you sell electricity at a profit.

Does that make sense?


02-20-2015 07:49 PM #4 ybyalik (Member)

Yes thank you


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