So I was thinking... Let's say there are 2 pop up/under networks: Traffic Source A and Traffic Source B.
I am an Advertiser on TS A and I am a publisher on TS B. What if I were to buy traffic from TS A at $.50 CPM and send it to my website (fake blog or whatever) that has my publisher code for TS B, which pop's their ad at $1 CPM. Take out whatever the network's markup percentage and the difference would be profit, right?
What am I missing here? Some things I could think of...
1. Spawning 2 pop ups might get you kicked off of TS B
2. Traffic quality on TS B would probably result in their advertisers pausing your placement
Has anyone tried this / made it work?
You're a bit late to the game, LOL
People have like been doing this like for the past 15 years on the Internet.
You have to do it on massive scale?
Hey! You stole my idea. Maybe green has got both of us (; . I just thought of something like this too.
So, we could
A) Set up an advertising Campaign with our landing pages on say PopAds.
B) add "publisher" website to PopAds & then add the code to our affiliate landing pages.
1) We send traffic from PopAds to our affiliate campaign landing Page's (which shows up as a pop).
2) Add The Publisher codes to our landing pages, which triggers another Popunder ( from our original pop)
3) Collect or.... ??? from that second popunder.
(Or you could use a second pop source's code. so you're buying popcash traffic to a popcash campaign, then "recycling" it with popads?)???
Would this work?
This is commonly called CRAP TRAFFIC. Yes, you could make some money but its really just selling fake traffic. There are a lot of people doing it and its dragging down the quality of pop traffic significantly. Some networks are catching on to it though and hopefully they will eradicate it. The easiest way to spot it is by looking at your site. They can easily see where your traffic is coming from.
My question is, would you buy this and try and convert off it ?
Like with all arbitrage you always run the risk of not getting paid if the ad network catches you. Its generally frowned upon by ad networks and most of them pay net30 or net60 so you have to always float some money.
1. You have to realize one thing, traffic network takes a commision, so if you buy the pops at $1 CPM for example, even if you resold all impressions, you will only get maybe $0.75 back, assuming the commision would be 25%.
2. Every pop network will charge you for more pops than you will actually get delivered (timeouts, lost traffic, whatever reason) - so you buy 1000 pops at $1, you register maybe 800, if you resell all you would get $0.80 - 25% = $0.6
3. Bots - you can bet the networks are better at detecting bots in the traffic they buy, than in the traffic they sell ... if you know what I mean
So you're down to $0.40 maybe ...
Thats why its not so easy. Of course it can be done, but you have to be able to buy the traffic really cheap and sell it as expensive as possible. You need to follow the market closely to know what GEOs are hot right now and hunt for them. We have been doing this for a while, but it was too complicated to do it manually, so we left it. With the proper scriptage, it could probably work wonders 
It is/was doable on adult networks and mobile traffic, especially carrier targeted 1-2 years ago, since they had absurd pricing differences eg Exo-juicy-plugrush. No idea if its doable today still. But your best bet would be to dablle with geo and carriers for this. I guess kimias, bitterstrawberries and such killed this game - but really no idea.
I was doing some small volume 2-3k per month with approx 1k profit, but as matuloo said too much fcking for too little effect.