Best Lessons/Training for Arbitrage

[rickkumar]

Hi,

As people say that parked.com allows arbitrage, I am wondering how people do it? Is arbitrage profitable with parked.com system?

I will appreciate if someone can answer the following:

1. How should one get training/lessons in arbitrage? Any recommendations?

2. What is the best way to use arbitrage to make profit?

Thanks.

 

[netmeg]

Not sure where you get your information on this...?

Neither Google nor Yahoo displays detailed domain parking information for their advertisers (although supposedly this is coming, at least for Google) So the only way the advertiser will know which domains his ad appears on is if the ad gets spidered and they catch it in the SERPS somehow (which happens) And even then, if they complain to Google, they are only told that it's part of the domain parking program (or search network) and is legit; if they want to opt out of the search network and/or content network, that's the only way the ads will stop showing.

And I'm not sure what any of this has to do with arbitrage?

 

[goodkarmaco]

The reason I see it being revelent is it dilutes the advertising experience as Blaknite explains.

Netmeg, do you think if a bunch of people start talking about how they are making money by pushing traffic to their parked names this will raise parking revenues or destroy the medium?

I see it this way, a few get in early and make money. Then they post how they are making really good money. So every domainer jumps in and pays to push ads to their parked pages. After this saturation advertisers notice their conversion is way lower than it should be and they notice this dilutes the advertisers profits as Blaknite explains. The traffic is not the right traffic the advertiser is paying for. Evenutally advertisers will pull back and there goes the whole parking business.

There is a reason parking companies stricly forbid arbitrage.

I only have my views and Netmeg has more experience than me in this, but these are my concerns anyway.

 

[netmeg]

The shakeout, when it comes, will not be because a few people are talking about arbitrage on forums, but when Google and Yahoo actually provide specific domain information in the Placement reports, as they now do with the rest of the Content Network. This will be good for some, and bad for most. The advertisers will see that some parked domains do convert into sales, and some (probably most) don't, and they will act accordingly, by specifying that they don't want their ads displayed on parked domains. Arbitrage isn't even going to enter into it; the advertisers don't care if domainers are paying for traffic to parked domains. They care about conversions. I know this because I've been an advertiser on behalf of clients for five years (and spent lots of time with other advertisers)

Regardless, I don't think misinformation is ever a good idea, so I correct it if I see it.

 

[projectv4]

hmmm this turned out to be a really interesting debate. although i have no interest in arguing the legitimacy of it, i do understand the whole "who ultimately gets screwed in the end" part of the argument, and i do agree.

i guess in the end i wasn't really trying to sway people to try it out, nor argue what is legit and what isn't, but merely inquire about ysm ppc lol :D

 

[goodkarmaco]

Thks netmeg for the clarity. I think you have made very good points.

 

[blaknite]

I'm not entirely against arbitrage. I can see situations where it could easily be beneficial to the advertiser by helping them to capture traffic they had no idea was even available to them. However it is against the rules because it is far too easily abused. What I am against is people standing up and saying this is great its perfectly legit and you can make gobs of money doing it. That turns to an influx of newbies who are rampantly abusing the system. They don't know any better. (or claim not to) In the end it turns to a massive blow to the parking industrys reputation and lower click values all around.

As to netmeg's post, I was not aware that google and yahoo didn't provide the source of the click to the advertiser. That in and of itself seem to be a fatal flaw in the system. If I'm going to pay $30 for a real estate click I would want to know who's site it came from, and the ability to block specific sites. Of course I suspect the advertiser can get this info from the referrer data even if google and yahoo don't provide it directly.

I regularly go to my websites and look at who's google ads are running. I check each advertisers site to see if it is an obvious arbitrage site, and blacklist the domain if it is. I envision (smart) advertisers are doing the same thing at their end with parked sites.

 

[vbigdeli]

I think just 5% of people can earn from this business(ppc traffic to a parked domain)..that's a very risky(like Forex).