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native ad arbitrage? 10k/m sold listing on flippa (11)

05-05-2016 09:18 PM #1 hephaestus (Member)
native ad arbitrage? 10k/m sold listing on flippa

check out this money making opportunity. looks like he's buying native traffic and making more ad revenue than he's spending (arbitrage)

https://flippa.com/6385913-mindbuzz-org

Site sold for 37K, it was doing 10K profit per month

looks like he uses some shit called prezna to a/b test and push all his campaigns to all of the networks

is anyone here doing arbitrage? is it a decent business for you?

05-08-2016 10:35 AM #2 ivocado (Member)

Ad arbitrage is as old as internet advertising. It is a legitimate business model. Nowadays, as in your example, content often gets spit-up (to generate multiple impressions per article) and native + adwords ads (style it similar to the "next" button for high CTR) are beeing added to the page. Now you go and buy traffic (mostly social) and optimize to get a positive ROI. Some guys made millions doing so.

05-08-2016 06:56 PM #3 steadfast (Member)

This business model is highly lucrative. Typically speaking mine have been monetized with native ad placements from RevContent. Outbrain. Gemini. Content.ad etc. and Adsense as well.

I'll send RevContent traffic to the site and the native ads typically make back the bulk of the ad spend going to the site, and then Adsense revenue is the profit. It's not that hard of a business model. A friend of mine sold a site based on arbitrage for 250k on empire flippers in the fitness vertical.

05-09-2016 01:04 PM #4 momentum (Member)

Random tangent, but do you go about creating posts like: http://mindbuzz.org/10-korean-beauty...e-your-skin/5/
In wordpress? Searched google and youtube for 'slideshow posts' but I can't seem to find anything.

05-09-2016 02:03 PM #5 ploppythejailer (Member)

http://codecanyon.net/item/theia-pos...56832?s_rank=2

05-09-2016 03:18 PM #6 matuloo (Legendary Moderator)

Yup, seems like arbitrage got a fresh breath with the rise of native advertising Many of people start viral sites these days, getting traffic from social platforms and native ad networks.

I just wonder why the guy sold the site so cheap, there is over 10k in monthly profit claimed and he sold it for 37 so like 3 months of revenue? Sounds like a bad deal to me.

05-09-2016 04:59 PM #7 greedy (Member)

Quote Originally Posted by matuloo View Post
Yup, seems like arbitrage got a fresh breath with the rise of native advertising Many of people start viral sites these days, getting traffic from social platforms and native ad networks.

I just wonder why the guy sold the site so cheap, there is over 10k in monthly profit claimed and he sold it for 37 so like 3 months of revenue? Sounds like a bad deal to me.
I talked to the seller on Skype and he told me that he sold at this price because arbitrage is high risk business and usually the price is around 4-6 monthly profit, 7 months maximum.

Anyway, it seemed to be a very good deal.

05-09-2016 05:14 PM #8 ty_c310 (Member)

I've pondered this idea but when most ad networks pay out on 30-45 day increments for their widgets, I wouldn't dare risk that. Imagine spending $100k in a month on ads and your profit was 10%, you still have to float all that ad spend and hope that the ad network pays you out. I've heard the horror stories about adsense/google not paying let along a smaller native network for whatever bullshit reason.

05-12-2016 10:03 AM #9 ivocado (Member)

Quote Originally Posted by ty_c310 View Post
I've pondered this idea but when most ad networks pay out on 30-45 day increments for their widgets, I wouldn't dare risk that. Imagine spending $100k in a month on ads and your profit was 10%, you still have to float all that ad spend and hope that the ad network pays you out. I've heard the horror stories about adsense/google not paying let along a smaller native network for whatever bullshit reason.
very good point!

05-14-2016 10:06 PM #10 pbrboy (Member)

What is a good resource to start with if you want to get into building viral sites?

05-16-2016 07:02 AM #11 maxentin (Member)

yeah, you got a really high chance of getting your AdSense account banned when you place ad units close to the "next" button

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