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How a Malaysian Made USD1243.17 in August 2007 Using AdSense Arbitrage

October 17, 2007 by  

If you’ve been following AdSense news closely, you might recall that Google AdSense had been on the look out disabling AdSense publisher accounts that are doing AdSense arbitrage.

Since May 2007, a number of AdSense publishers had been receiving emails from Google stating that they have violated AdSense policy by running unsuitable business model and that account would be disabled. As it turned out, the email was sent to publishers doing arbitrage.

 

So what is AdSense arbitrage?

It’s basically a way to make money from sites with very little content or sometimes none at all. The sites, often called made-for-AdSense or MFA sites are typically created by scraping content from other websites and then littered their pages with ads from Google AdSense.

To drive traffic, the owner would buy pay per click traffic and send them to those sites. It’s called arbitrage because the AdSense ads on the sites pay more than the cost of the pay per click keywords. When the visitors click on an ad, the owner pockets the profit from the difference between the earning per click minus the cost of the PPC keyword.

Arbitrage exists in several forms and the one described above is the most likely to get the boot from Google. Other types of arbitrage include one that like the above but the webpage contains more content with a goal of generating clicks on the ads.

If I were to send traffic to Sabahan.com using PPC, I am basically doing arbitrage. However, I am certain that I won’t get the boot because I provide value to the users by presenting relevant and useful content. So as you can see, arbitrage can be a valid business model as long as it provides good users experience.

Other types of arbitrage include shopping engine arbitrage where a landing page compares the price of a same product from multiple suppliers. Another one is an affiliate arbitrage where the marketer creates a landing page to promote certain affiliate programs and use PPC to drive traffic to that page. Arbitrage exists because people want to take advantage of the inefficiency in the marketplace.

 

Yahoo & AdSense Arbitrage

Since the crackdown, it’s now become riskiest to get involved with MFA especially with one that offers no value whatsoever to the users. Some people tried to circumvent the rules by using other PPC search engines such as Yahoo Search Marketing (YSM) or Microsoft AdCenter. As it appears, some are able to get away with it, at least for the time being.

I came across an interesting thread over at CyberWang.com Forum about a guy who is making good money from the AdSense and YSM arbitrage combination.

In the thread, he shares his experience and progress as he continues to experiment with YSM & AdSense arbitrage. It’s interesting to see how his profit slowly increased as he increased his PPC expense. The most he had made so far from AdSense was USD1243.17 in August 2007.

adsense-check.jpg

However, keep in mind that that’s a gross profit before PPC expenses. You’ll get an idea in regard to his profit margin once you check out the thread. I think it’s a clever marketing ploy on his part as well where he uses the thread to sell an ebook where he reveals his methods in more details. Now I am giving him a free publicity at Sabahan.com…

From what I understand from the thread, his strategy basically involves the following steps

  1. Find thousands high paying AdSense keywords using certain tool
  2. Use a software to generate hundreds of blogs with AdSense placed strategically to maximize click through rates
  3. Drive traffic to those blogs using Yahoo Search Marketing
  4. Slowly increase your spending on PPC to drive more traffic
  5. Repeat the above steps

My first impression tells me that this is exactly the type of account that will get canned by Google. According to him, some of his sites get an incredibly high CTR. That’s a cause for concern if it were to happen to any of my sites as it would raise Google’s red flag.

Perhaps the reason why he could get away with it is because the clicks seem to be organic as they originate from outside of Google network. But sooner or later, Google will surely catch up. Then again, I haven’t purchased his ebook or visit any of his MFA sites so I can’t comment whether he’s violating any of AdSense policy.

While I know Google frown upon MFA sites created automatically, I don’t know what makes his sites different from the rest and whether they offer any value to the users – that’s for Google to decide.

 

How to Avoid Getting the Boot When Doing Arbitrage

My general feeling is that Google is only banning arbitrage sites that offer no values to the users. As a matter of fact, arbitrage is actually a valid business model and can be beneficial for publishers and advertisers.

Sites that produce poor conversion rates after the click won’t stay in the network for long. It may make the publishers rich in the short term but advertisers are looking for return on their investments. When the demand and supply is out of balance, Google may canned those publishers which in turn is actually good news for advertisers since it should weed outs bad publishers from the content network.

A Google spokesperson once said this is part of an ongoing quality initiative on its content network:

At Google, we are always focused on how we can make the user experience as positive as possible while still providing value to our publishers and advertisers. As part of this effort, we continually conduct automated and manual reviews of publishers and sites that violate our policies. In some cases, violations of our program policies will result in termination from the AdSense program.

So if you are thinking of getting involved in arbitrage, you need to ask whether your site provide value to users, if they don’t, expect to get the love letter from Google anytime.

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27 Comments »

Comment by wandira
2007-10-17 09:22:18

Arbitrage exists because people want to take advantage of the inefficiency in the marketplace

 
Comment by wandira
2007-10-17 09:25:38

Sorry …. should be this

“Arbitrage exists because people want to take advantage of the inefficiency in the marketplace”

People always want to take advantage from everything .. :)

 
Comment by Wahlau.NET
2007-10-17 11:17:06

wow…the name is on the check, now it will be banned

Comment by Mr. Rajawang
2007-10-17 18:41:07

even the cheque numbe also shown.. :P

 
 
Comment by dott-com
2007-10-17 16:56:28

yups that guy should not post the check with his name on it. a short popularity will gone forever after this. cool discoveries gaman

 
Comment by BlogsTheme.com
2007-10-18 03:50:44

Usually the arbitrage websites are low quality websites, and their traffic is low quality, so they dont bring in any value to the end users (advertisers/visitors).

 
Comment by david
2007-10-18 23:59:51

Will that be his last check!?

Comment by Mr. Rajawang
2007-10-20 17:14:11

only time will tell..

 
 
Comment by Offshoreman
2007-10-19 20:33:48

Iyup… that was for sure…

 
Comment by Iivonson
2007-10-20 09:04:01

Definetly that will be his last check.
Especially now a days Google is coming in real quick in stomping out all this useless site that bring no value to the user and advertiser.
Give the websurfer real value added content is still the key to long term success.

 
Comment by fakhri
2007-10-20 12:01:11

“My general feeling is that Google is only banning arbitrage sites that offer no values to the users. As a matter of fact, arbitrage is actually a valid business model and can be beneficial for publishers and advertisers.”

I think that his site(s) provide(s) values to user..so that is why his site(s) haven’t be banned by Google..

 
Comment by hafreze
2007-10-24 01:51:24

I’ve been following his thread quite a long time ago. Definitely his tactics is a proven. Well, either the tactics is good or not, it’s still being proven. frankly, I already played around with adsense arbitrage and lately get boring with it. Since I’ve to monitor it everyday..just in case. I think google will not ban him as he is giving a value in most of his websites. Well, who knows..in most cases, google would not care about adsense arbitrage as long as he’s comply with google tos.

there’s no wrong using either adwords or YSM for advertisement, so why we care about being banned? Google is not our boss, so it’s up to us to use any tactics for generating income.

Just the things that he did wrong is, exposing too much with his techniques . This will definitely hurt his income later.

 
Comment by walikard Subscribed to comments via email
2007-10-24 10:30:30

Agreed with Hafreze. I know this guy don’t deal with a crappy content website. Some more, that was not his last cheque as he has shown his other cheque, subsequent to that one in a thread provided by Gaman above.

 
Comment by Kevino Subscribed to comments via email
2007-10-25 17:48:17

Hi I am a newbie. I got a high paying keyword site. But when I check my Adsense account it show only 0.30 to 1.00 when there is clicks, but when I search with my google adword account, these keyword is bidding from 5.00 to 20.00. How?……

 
Comment by Chok
2007-10-30 18:22:02

what a desparete move by this guy

 
2007-11-04 17:24:07

I don’t really know all that much about arbitrage butit’s talked about a lot – Shoemoney makes a lot of money from it. If the arbitrage practise is simply buying trafic cheaply and sending it through to adsense ads that pay more – that in itself, it not the problem.

Really, it all comes down to a question of content. If you’ve created a great content side, you have high paying ads and you drive traffic with PPC, there’s nothing wrong with that and yet that’s still arbitrage isn’t it?

I think the phrase is used in a negative way but its the quality of the sites that should be in question.

 
Comment by titan
2007-11-07 02:36:09

Hoho, i follow the thread at wangcyber and he really earn monny from his adsense and also from his e-book.

I can said his acccount will be under Google attention. Hoho..

 
Comment by pinolobu Subscribed to comments via email
2007-11-13 21:32:43

It seems the last time he made public his adsense income was for Sept where he made USD899, which is less than his August income. For October, no news yet.

 
Comment by zaki blogjer
2007-12-25 10:07:56

Well, its up to him to show the cheque’s screenshot, but don’t show the cheque number at least.

I’ve been following this thread too, interesting I can say, but he has moved most of update to private forum

 
Comment by Kay Kastum Subscribed to comments via email
2008-02-12 18:06:53

Hmm… easy money? :D

Comment by bantingboy
2008-12-19 17:43:33

not really easy money. we need to work a lots before it become easy.

 
 
Comment by abdfatah
2008-04-20 23:56:21

yes… very easy money everyday…

 
Comment by che-mie
2008-12-18 16:51:27

can u pls teach me

 
Comment by eshanne
2008-12-19 17:04:39

i’m not quite sure about that one, but it quite good for the first view but hey, nobody’s perfect.. Hehehhe.. keep on going dude.. :)

 
Comment by Travelcn
2009-01-05 00:41:05

I have done it with my site before and find out it is workable only if your sites gaining good traffic and rank other than ppc traffic.

 
Comment by peter
2009-02-28 00:39:23

Oops, my commend did not make it through, trying again…

Great article. Just currious … the article was written in 2007, so it is a bit old. I heard Google is banning some accounts for arbitrage. Anyone has experience with arbitrage today these days in 2009?
I ran into this adsense guide the other day, maybe following this guide + arbitrage = killer money machine? :O)
http://www.maxi-pedia.com/make+money+with+adsense

 
Comment by celebrity scarves
2011-11-14 00:17:04

I think arbitrage become hard today..
we must have good high paying keyword on the web page.

 
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