Arbitrage vs traditional Affiliate marketing (13)
Hello everybody
Happy Easter
I am planning to launch both arbitrage campaignso (arbitrage and traditional affiliate marketing CPA offers however I like to know what most of you think?
Is it better to go one or the other? I read a lot of threads and seems like CPA offees is more stable and make more money?
I read many CPA offers campsigns can make $10k a day in profits vs arbitrage is up and downs?
Thoughts?
Ps I'm new and like to hear opinionso thanks
Arbitrage is one of those English words that is almost always misused, and even then, (mis)used to mean different things to different people.
What exactly are do you mean when you talk about arbitrage vs traditional affiliate marketing?
Originally Posted by cmdeal
-Whole Part
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and so on?
Looking at your previous posts @kingrichards, arbitrage is a subset of CPA marketing.
You are buying traffic from a supply-side source, and selling--on commission--the traffic to a demand-side source. Arbitrage as in the thread you resurrected simply is direct-linking from your traffic provider, to a monetization source with the hope that your earnings are greater than your expenses.
CPA marketing encompasses far more strategies of which arbitrage--or direct-linking--is one. I would suggest reading through the onboarding section on the forum to learn a little more about the affiliate marketing / performance advertising industry and your future role in it.
Originally Posted by jennatalia
What are your thoughts as for making income for $10k a day? Which method make more sense?
Depends on you.
There are so many different strategies involved. Figure out which one(s) play to your strengths.
Originally Posted by jennatalia
Originally Posted by jennatalia
Arbitrage means a riskless profit. By definition, you cannot lose money when you engage in an arbitrage transaction. If you are getting paid to take on risk, or if you lose money, that is not an arbitrage transaction.
Originally Posted by cmdeal
^^ Haha to keep it simple you mean "direct-linking from your traffic provider, to a monetization source with the hope that your earnings are greater than your expenses."
Lets call it direct linking for now.
Can you make 10k/day on it? Sure you can, but it won't be easy.
Originally Posted by Mr Green
Originally Posted by Mr Green
Arbitrage and direct linking are two completely different things. Indeed, they are not even in the same ontological category.
Direct linking describes the number of clicks required to get to the advertiser's offer page. To be more precise, a direct linking campaign is a campaign in which the number of clicks to get to the advertiser's offer page has been reduced to 1.
This has absolutely nothing to do with whether this campaign results in an arbitrage profit or not.
An arbitrage profit is a riskless profit.
In financial markets, an arbitrage profit would exist IF a stock is trading on one exchange for $100 AND is trading on another exchange for $95 AND your total transaction costs are less than $5 AND you can executive a virtually simultaneous buy-sell transaction. Or an arbitrage profit would exist IF the dollar/euro exchange rate AND the euro/yen exchange rate AND the yen/dollar exchange rate are not in equilibrium, so that if you start converting currencies in either direction of the currency cross rate triangle, this result in the opportunity to engage in a riskless profit by buy one currency long and selling another short. Or an arbitrage profit would exist in so called "flash trading" if, due to the physical proximity to certain financial data providers, you are able to front run existing buy orders at a lower price and immediately sell it on to the original buyer.
In the advertising world, arbitrage examples would be CPM to CPM arbitrage, such as buying various impressions on one exchange and selling them on another exchange where the buying pricing are much higher due to inefficiencies or distortions in pricing or information. Similarly if you run an ad network, you are essentially running an arbitrage business model. Another example would be CPC to CPM arbitrage: if the CPC that you pay to get a visitor to your site * 1000 < the CPM you get from the page, then that would be a riskless profit. This is what is behind all of these paid traffic driven, ad maxed, sites like http://dailysanctuary.com/35-ridicul...ver-thought-of which has so many ads on each page it is hard to even see where the real content is.
You can certainly imagine an arbitrage direct linked campaign, but just because a campaign is direct linked that does not mean it is arbitrage. Likewise, just because a campaign is arbitrage, that definitely does not mean it has anything at all to do with direct linking.
Bidding strategies for CPM to CPC arbitrage conditions: http://www.eecs.harvard.edu/~cavallo...v-arb-teac.pdf
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