Internet
Solutions Company
We value quality and results. We use our knowledge and experience in software development to achieve your business goals.
We provide a wide range of services: from creating a simple business card site to developing complex mobile custom applications.
Mobile development
One of our core competencies is mobile application development. This means that we receive requirements from you and completely create a finished product. From the development of ideas and documentation, we move on to design and programming, test, help publish the application on the App Store and Google Play, and also provide post-release maintenance.
WEB development
We develop web applications in .NET, php and Java, opening a limitless world of online solutions for our clients. Such programs are compatible with different devices and OS, do not require installation and allow you to work with comfort, wherever you are. We implement projects of any complexity: single-page and corporate sites, online stores, CRM and ERP systems, various services.

Traffic Arbitrage

What is traffic arbitrage

Traffic arbitrage is attracting buyers to a customer’s site for a percentage of sales. The webmaster himself thinks out how to sell goods on the Internet, which channels to use, spends his money on advertising. In return, the company pays him a percentage of each sale.

Example 1 . The company makes cakes to order for 300 UAH. The arbitrageur creates a landing page for the product, sets up contextual advertising, publishes posts on Facebook. For each attracted buyer, he receives 50 UAH.

Example 2 . The company sells cakes for UAH 300, the affiliate offers them on the Internet in various ways for UAH 350, and takes the difference for himself.

Example 3 . The company cooperates with an intermediary – the CPA network. This is an affiliate platform that selects affiliate marketers itself, controls their work, and makes sure that they provide high-quality traffic. CPA networks take a commission from companies (on average, about 30% of sales). In this case, the proceeds from 1 cake will be:

UAH 300 – 90 UAH (commission CPA networks) – 30 UAH. (interest to the affiliate marketer) = 180 UAH.

 

At the same time, partner networks, due to established contacts, are able to provide a consistently large number of orders.

We parse the terminology

To make it easier to navigate the CPA network, it is worth learning the terms in advance.

Advertiser  – A company that hires an affiliate marketer to generate leads.

The vertical  is the sphere that unites the products of the industry. For example, anti-wrinkle creams, antivirals, and mascara all belong to the same niche. The most common verticals in arbitration are tourism, real estate, training courses, games, dating sites.

Conversion  is an action for which an affiliate gets a percentage. Most often this is a purchase, but sometimes the end goal of an advertiser is to register or subscribe, collect contact information.

Creatives  are advertisements created and customized by the affiliate marketer to generate leads. It can be a photo, video or collage with text.

Landing  page (or landing page ) is a landing page that an affiliate marketer can use as an intermediate link. The user first goes to it, and then, by clicking on the link, goes to the customer’s online store.

Lead  – the user who performed the target action.

Offer  – a product (or service) to be sold and advertised.

Profit  is the net profit of the affiliate marketer, the difference between income and expenses.

Fraud  – low-quality traffic. Clicks from users who are not interested in the product.

Hold  is the period of time for which the advertiser confirms the actions of the customers brought by the publisher.

The types of earnings in arbitration are indicated by abbreviations:

  • CPA – interest is charged for each action performed by the user (registration, purchase, subscription);
  • PPS – payment for sales;
  • PPS – registration fee;
  • PPI – fee for downloading (for example, e-book or application);
  • PPC – Percentage Per Clicks.

What are the features of traffic arbitrage for a webmaster

For webmasters, arbitrage is a niche where you can both make good profits and go bust. Before you try yourself in this area, it is worth considering a few features:

  • you will have to use your own money for advertising. Approximately – from $ 500. This is the basic amount that will allow you to test several advertising tools and choose the best one;
  • it is necessary to have complex knowledge and skills in working with various sources, services and analytics systems. They can be mastered both individually and in traffic arbitrage courses;
  • you need to prepare for high competition, in which not only single contractors participate, but also large companies with a turnover of tens of thousands of dollars.

In essence, an affiliate marketer is a technical specialist and a creative person in one person. Sometimes two people work in a niche. One is involved in customization and analytics, and the other is in content writing.

What is “white” and “black” arbitration

“White” arbitration is the promotion of regular online stores that provide transparent terms for purchases and truthful information. For example, a business selling clothes, household appliances, training courses. It is with “white” offers that CPA networks prefer to work.

“Black” arbitration – promotion of sites that can deceive users or distribute virus software. These can be online casinos, bookmakers, gambling. Black arbitration often uses illegal methods to circumvent advertising bans.

Sources of arbitrage traffic

Then you will learn where to get leads, how to get rid of low-quality traffic.

Where to buy traffic?

Arbitrage traffic can be attracted for free on thematic forums and Internet message boards, but it takes a lot of effort and time. The most effective paid sources are:

  • contextual advertising in Google Adwords . Best for selling banking services, online courses, distance education offers, and more.
  • social networks . You can buy advertising through an intermediary site, for example, Sociate.ru, or negotiate directly with the owner of the profile / group;
  • banners are catchy blocks of a graphic or animated nature. One of the most expensive and effective advertising tools. Banners are installed on third-party sites by prior arrangement.

Two more directions – traffic exchanges and teaser networks – provide a cheap (from $ 5), but far from the most relevant flow of visitors. It is better not to take them as a basis for promotion.

How to filter low-quality traffic

Exchanges and teaser networks provide a significant percentage of low-quality traffic, but with due effort, you can get rid of it. Frauds are bots or fakes. The invasion of low-quality traffic can be suspected by the following factors:

  • too high speed of transitions from one source;
  • the absence of a long interval between the click and the targeted action (for example, registration);
  • abnormal activity at night;
  • many clicks from one IP address;
  • conversion below 0.1%.

Systems and services are constantly being improved to combat bots. Many affiliate trackers are already equipped with anti-fraud systems. In addition, there are independent options like Kount, Kraken, FraudShild, etc.

To collect and filter traffic, it is recommended to use landing pages, that is, landing sites. You can attach Google Analytics statistics to them. Then you can estimate the number of conversions and conversions from various sources and determine their effectiveness.

Where to direct traffic

An arbitrage specialist can work directly with customers or through CPA networks. The best option is to distribute traffic across several affiliate programs, but within 2-3 topics. Each platform has its own prices for different verticals. Somewhere it is more profitable to promote a product from the Beauty and Health niche, and somewhere – Tourism, etc.

Why is it better to focus on 2-3 topics? So you can gain experience in promoting products of a specific industry and collect case studies for similar companies.

Advantages of traffic arbitration for each participant in the process

For a company looking to have more sales, arbitrage is a break-even way to invest in advertising, and here’s why:

  • you pay only after the fact for each lead brought. No sales – no payments;
  • no need to allocate an advertising budget. Arbitrazhnik invests his funds;
  • advertising strategy is a “headache” exclusively for webmasters. The company can indicate its terms in the contract. Usually, an affiliate is free to choose the way to promote a product.

By concluding a deal with an affiliate marketer, you get an employee who is really interested in sales, because his earnings directly depend on the number of leads. Buying traffic is a quick way to get customers, and it does not require working capital. But, unlike SEO, it stops producing results immediately after the end of the work.

For the affiliate marketer himself, buying traffic is a way to get:

  • complete independence and freedom of action;
  • flexible working hours;
  • unlimited income;
  • the ability to develop in several directions at once.

A weighty minus – you will have to risk your own money. Before starting work in this area, you should thoroughly prepare.

How traffic arbitrage works

We will tell you what an affiliate needs to do to fulfill an order, and a company needs to receive it.

How to become an affiliate marketer

The specialist must have an impressive store of knowledge. What an affiliate does:

  • configures context and target;
  • makes crops in social networks;
  • collaborates with bloggers on Instagram;
  • attracts traffic from organic search results;
  • works with YouTube;
  • writes selling ads.

He needs to constantly monitor the updates of search algorithms and be aware of changes in ranking. The affiliate marketer should have developed analytical skills, since evaluating the effectiveness of channels and testing results is an essential part of the job.

The skills of selling traffic are taught in courses on Internet marketing. Learning on the go is dangerous, because you can drain the budget, and this is the affiliate’s own money.

How to order arbitrage traffic

Advertisers find affiliates directly or through CPI networks. At the same time, they can set restrictions prescribed in the TK, for example, a ban on mentioning a brand, using Facebook for promotion, etc. Otherwise, the publisher himself has the right to decide how and where to sell products. Next, we will talk about the intricacies of working in this area.

What is an offer in arbitration

An offer is a product or service that needs to be promoted in arbitration. How to choose a niche in which you will work? At the initial stage, it is better to dwell on an interesting and understandable topic, then it will be easier to understand the pain of the target audience and choose the right promotion channels. The easiest option is to sell physical products on social media.

How to create an offer

A detailed offer makes it easier for the affiliate marketer and increases the efficiency of the process. What should be indicated without fail:

  1. Description of the product (characteristics, advantages, geo-focus).
  2. The action that the lead must perform (buy, register, fill out a questionnaire).
  3. Working conditions and restrictions (which can and cannot be used for promotion).

The offer must contain the amount that the affiliate receives for each lead. As a rule, small bids are typical for products that need to spend less money on promotion, and vice versa.

How to test the offer

The easiest and most effective way is to establish communication with the project manager. He can provide recommendations on the optimal promotion channels. Before starting arbitrage, you need to test various advertising tools to choose the best one. How to do it:

  1. Choose one geo-direction and work it out (create creatives, landing pages, banners). You can borrow ideas from competitors, but original solutions are always better.
  2. Test the options and select those that cost the cheapest. At this stage, data on the age of the target audience can be collected in advertising systems.
  3. Test creatives on different pre-landers.

Introduce the most effective methods into the advertising strategy, and try to optimize and refine the unprofitable ones. It is recommended not to touch the ligaments with a small plus.

Track the effectiveness of advertising channels using arbitrage trackers. Here you can evaluate the following indicators:

How much can you earn from arbitration?

There are no restrictions, it all depends on the investment and the effectiveness of advertising. As a rule, the more investment, the higher the earnings.

Beginners should prepare for the fact that there will be little or no income in the first few months. Novice affiliate marketers learn to understand trends and nuances, work with target audience, find the cheapest ways to attract traffic.

Experienced webmasters can earn from $ 1,000, there is no upper limit. It all depends on the volume and efficiency of work. The income of top specialists, for example, international arbitrage specialist Miroslav Lyaskovets, is estimated at millions of dollars.

Services for work on arbitration

You can see creatives here: publer.pro, unsplash.com, shutterstock.com.

Work with social networks will be facilitated by smmplaner.com, freesmm.ru.

Arbitrage trackers: octotracker.com, keitarotds.ru, adsbridge.ru

Services for working with contextual advertising: Google Adwords, Google Analytics.

Conclusions: who benefits from it and how

This is always beneficial for advertisers. As for affiliates, we would like to point out the following. If you have creative and technical skills, enough financial resources, you are ready to take risks, then, of course, it is worth trying yourself in a niche.