Adsense arbitrage has now again become a viable business model for a sustained online income, provided of course you know what you are doing and don't go against the system but work toward the betterment of the system.
Adsense arbitrage is not a new concept or secret idea that has just arisen; it has been around for a while. The concept behind Adsense arbitrage is simple, you buy advertising from adwords or another PPC engine, and you send the traffic to a landing page of your own with Adsense advertising. People click on the Adsense ads and you get paid. Your profit is made up of the difference between what you pay for the click and get paid for the click on your page.
Now although this may seem relatively easy to achieve there are some points you need to consider very carefully before placing your ads and landing pages.
1. You have to research your keyword and make sure that it will be profitable. To get an indication if the profitability factor of your keyword make use of the Overture bid tool. Type in your keyword and look at the difference in the bid prices between ad one and ad ten, the higher the difference in bid prices between the first ad and the last ad the higher your chances of success. This is not a clear indication that it will be profitable but it is a good indicator of what is going on in that specific area of the market linked to the keyword. Based on this information you should then research the keyword further.
2. Your landing page has to be targeted to the visitor who clicked on your ad. The page has to be optimized for the keyword you chose, else the wrong Adsense ads will be displaying on your page.
3. The content of the landing page should be no less that 300 words and must be relevant to the keyword and adwords ad you placed.
4. The Adsense ad placement is of optimal importance to ensure a high click through rate and successful Adsense arbitrage.
Like in any business online and off line there is a risk factor. It is the same with Adsense arbitrage and there are many who have gotten it wrong and gave it up as a bad business idea.