Arbitrage Test Run

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trigatch4

trigatch4

BuildAndEarn
Aug 23, 2006
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www.eurekadiary.com
I just put up 16 arbitrage sites for the same industry, each serving a slightly different target. I have seperate adwords campaigns driving them to each site. I had one similar site that was earning me $2/day. This test will prove whether arbitrage can work for me.

I'll report back with the financials tomorrow night. Depending on the results, I may change page content, ad colors, ad content. But I'll only change one at a time to see how it effects results.

I'm eager for the results... tomorrow is going to be a hectic day of adsense/words watching!
 


Good stuff. Sounds like an interesting experiment - another WickedFire Labs series?
 
This doesn't seem like it will prove if arbitrage will work for you or not, it sounds like it'll prove if this 1 niche will work. If I was just started with 16 sites I'd try totally different thing.
 
Also it surprised me that you use Adwords to send traffic to your arbitrage niche site. I always thought that people buy tier 2/3 (read: cheaper) traffic in order to make revenue! Or can Adwords work as well for arbitrage I am wondering!? :)
 
Michel Z. said:
Also it surprised me that you use Adwords to send traffic to your arbitrage niche site. I always thought that people buy tier 2/3 (read: cheaper) traffic in order to make revenue! Or can Adwords work as well for arbitrage I am wondering!? :)
Click to expand...

See below ;)

trigatch4 said:
I have SearchFeed and 7Search but have not used them extensively... they don't seem to drive large volumes of traffic.

So far, at 11:30am ET I've spent $.50 in adwords and earned $4.61 cents
Click to expand...

Nice! That's a 9:1 ROI!
 
man! how much are you paying for each click and about how much are you earning per click?
 
Mill said:
He said he has spent .50 made 4.61 ,, hmm:anon.sml:
Click to expand...
yeah so? it could mean a bunch of possibilities. he could be paying 5 cent per click. got 10 clicks. all convert into clicks onto his contextual meaning each click is worth 46 cents. now just as easily only half could have converted, meaning each click is 92 cents. or maybe a fourth converted meaning 1.84 cents..and so on...and plus, thats only if his bid was 5cents. the possibilities are almost limitless. my quesiton was a good and plausible question.
 
UPDATE

I decided to wait about a week to let the law of averages play out and take all factors into account. I created about 40 quick one pagers using the exact same template.

All Time Stats
$39.01 Revenue (from 81 clicks)
$18.96 Expenses (from 192 clicks)

Assuming 20 dollars profit from 40 sites, each site has only earned an average of 50 cents. Some of these sites are performing well while others are underperforming (operating at a loss) and I intend to change some things around with the ones losing money.

The main struggle has been driving traffic to these websites. My max CPC on adwords is at 10cents. I've read Jon post that 6 cents should probably be your limit for arbitrage. With 40 of these arbitrage sites, some of them are getting only 1 or 2 page views each day. This is for several reasons. I am often ranked 9th or below in the ad serving and also, my keywords are quite general. Not everyone searching for my term gives a crap about my ad... actually, very few do. So, a very small number of the impressions are turning into clicks. Think small decimals. I have searchfeed and 7search, but neither of them seem to send any traffic my way.

Another issue is my choice of domain names. As recommended in an earlier thread, I used the same domain name for all 40 of these sub sites. While these sites have earned an agregate 20 dollars, I created a similar arbitrage site with a separate specific domain name not only for the industry but for the niche within that industry. The site gets many more clicks on adwords and I am up to 20 in profit from this arbitrage site alone. But, the domain also cost me much more as it is a ccTLD.

I have also split the 40 sites up into 2 designs... 20 for each. In 2 or 3 weeks I will look at which design has worked better, apply it to the other 20 and test some more. I'll also do some more detailed analysis... this is a good start, but I'd like some more data to work with because as I explained before, traffic is still slow.

In the meantime, I think I'll work on some sites that actually have content, and see if I can't test those waters. I have to say though, arbitrage comes easier because apparently ugly pages get high CTR and I'm good at making ugly pages!

Hope this was somewhat insightful/interesting and I'll update this sometime down the road when i conduct more analysis.
 
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Sounds great so far, you might want to research more keywords for the niche your targeting, as you mentioned, some of the keywords your bidding on are too general and not related to your AD, thus your AD is appearing way low down because of other websites bidding more on those general keywords.

Allot of longer tail keywords get searched and very less amount of people bid on those, try finding those keywords, I recommend you check out wordtracker for this, you'll probably get less impressions but a better CTR.
 
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