How to Make an AdSense Arbitrage Machine

If you make a search on Google for “AdSense Arbitrage”, you will find several exaggerated ads that encourage you to run an AdSense Arbitrage business and make thousands of dollars per month.

Of course they won’t let you know the secrets for free and you have to buy their e-books. I ordered some of them and couldn’t find any secret. All I could find in them was just general information about AdSense and pay per click advertising that you can find everywhere over the Internet.

I posted an article about AdSense Arbitrage on January 27th, 2007 and explained that it seems almost impossible to make money through AdSense Arbitrage and what some people claim on their ads and websites that are designed to sell AdSense Arbitrage e-books is not true. Since I posted that articles, I discussed about AdSense Arbitrage and the way it works with many Internet marketers, in tens of different forums and discussion boards, and tried to find out if it works or not.

Like any other business, AdSense Arbitrage has some secrets and you can not make any profit if you don’t know them. Those who make real money through it, will never reveal the secrets and some of those who have never made any money through it, create some e-books and claim that the secrets can be found in them.

Although until 3 months ago I believed that it doesn’t work at all and can not make any profit, I want to admit that some people make money through it. The amount of the money they make is not as much as you can see in AdSense Arbitrage ads but it can cover some of the bills and expenses. So you may want to try it. If you don’t know what AdSense Arbitrage is, please read the article I have written about it here.

Briefly, AdSense Arbitrage is based on paying for a low price keyword in an pay per click system like AdWords, Yahoo or MSN AdCenter and driving the visitors to a page which is monetized with Google AdSense that has higher payout because of the keywords/phrases that are used on that page.

Please note that you can make profit through AdSense Arbitrage if you follow the below instructions carefully, otherwise it will be wasting of time and money. There are thousands who read some articles or e-books about AdSense Arbitrage and then try it but they give up after a few days because the money they spend is much more than what they make.

Let me emphasize again that unlike what you see on many AdSense Arbitrage ads, it is impossible to make $1000 to $1500 per day. Of course it is possible BUT you have to have at least 200 websites and thousands of ad campaigns in several different pay per click programs. I think it is almost impossible to manage all these websites and ads.

OK! Let’s get started. To run an AdSense Arbitrage business, you need to have/do three things:

1- High paying keywords list

As you know, When you post Google AdSense ads on your websites, you will be paid for each of the clicks that your website visitors make on the ads. The amount of the payment is depend on the ad that is displayed on your website or web page and Google displays the ads according to the keywords/phrases that your web page is optimized for it.

For example when a web pages is optimized for “work at home” or this key phrase can be found on its title, description and page content, Google displays the “work at home” related ads.

The ads that Google displays on your website pages are belonged to the advertisers who use the Google AdWords program to advertise. AdWords is the Google Pay Per Click program. So advertisers pay Google for each of the clicks that their ads receive. It means when a user clicks on the AdSense ads you have on your website pages, Google charges the advertiser whose ad was displayed and clicked on your site. Then Google pays your commission and keeps the balance for itself.

The money that advertisers have to pay varies from keyword to keyword. Accordingly the money that Google pays you for the AdSense, varies. Some of the keywords are very competitive and so expensive. It means advertisers who bid on these keywords have to pay a lot of money for each of the clicks. Accordingly if you optimize your web pages for such keywords and then post AdSense on them, you will make more.

Of course, the commission you receive through the AdSense, is not just dependent on the keywords. There are a lot of other factors that I will explain later in this article. You are able to maximize your commission by following some simple directions.

Most of you know all these things better than me but I just wanted to explain a little for those who don’t know how AdWords and AdSense work.

When you want to make money through AdSense Arbitrage, it is better to find the high paying keywords and optimize the web pages that you want to drive traffic to them with these keywords. You can find high paying keywords for free if you make a search on Google. There are also some opportunistic people who sell these keywords but avoid them because you can find the keywords for free.

Click here to download the list of 50,000 high paying keywords for free

These keywords are sorted from the most expensive keyword which is about $70 to bid to the last one which is about $1 to bid. Of course these amount changes from time to time and become more expensive because the competition is increasing. So the most expensive keyword, student consolidation, can currently cost even more than $70!!!

Yes, some advertisers pay more than $70.25 for each and every click their ads receive through Google AdWords.

2- A new website for the chosen keyword

Choose one of the keywords from the list to start. When you learnt how the AdSense Arbitrage system works, you can work on as many keywords as you can.

Please don’t choose the most expensive keywords because I am sure there are a lot of others who know these keywords and have focused on them. As you will have to advertise on some Pay Per Click search engines, when you choose a keyword that many others have focused on it, you will have to bid on the keywords more and so your profit margin with become narrowed. So try to choose a middle price keyword like “laser hair removal New York” which is about $32 to bid. It means if you want to promote the related product on AdWords, you have to pay up to $32 to have your ad displayed on first search result page.

If you follow the below directions carefully, you may be paid up to $15 for each of the clicks that your websites users make on your AdSense ads.

I already told you that the commission you receive through the AdSense is not just dependent on the keywords that your web pages are optimized for them. Of course the keywords are the main factors but there are some other effective factors that you have to consider if you want to make money through an AdSense Arbitrage system.

Google doesn’t pay the same for an especial keyword to all the websites. For example there are millions of web pages that are optimized for “work at home” but Google doesn’t pay the same amount of commission for the clicks that AdSense ads receive from all of these web pages.

So what kind of websites receive the maximum payment and how can you maximize your website AdSense revenue?

Website design:

Websites that are well designed and Google crawler can index their pages easily will be paid more than the other websites.

Website optimization:

Websites that are merely optimized for an especial keyword will receive the maximum amount of payment than websites that each of their pages are optimized for different keywords that are not related to each other.

Please note that I don’t say that you have to optimize all the pages of your website for one special keyword. What I mean is that your website should be focused on one subject. If the home page is about “home business”, all other pages should be focused on home business and if the home page is about “health”, all the other pages should talk about health.

Websites that are not focused on one special topic, can not receive the maximum payment through the AdSense. For example web directories that have different categories that are not related to each other, are the worst websites regarding the AdSense revenue.

Websites that their theme, title and description becomes changed very frequently and make Google confused about their theme and topic, are paid less. Also websites that are not optimized for any special keyword and each of their pages are about a different thing (like some weblogs that post anything about everything!) have very low AdSense revenue.

Website age and popularity:

It seems Google pays more to the popular and old websites. New websites that are still in the Google sandbox are paid less than popular websites that are focused on an especial topic and known by Google long time ago.

If you have chosen a high paying keyword for your AdSense Arbitrage business, you have to design a high AdSense paying website for it:

Register a domain: First you should register a domain for the keyword you have chosen. You’d better to have the keyword in the domain name. For example if you have chosen the “laser hair removal New York”, the domain can be laser-hair-removal-new-york.com or laser-hair-removal-new-york.net or … .

Why should you register a new domain?You want to make profit from this business, right? So as I explained you have to design a high AdSense paying website for the keyword you have chosen. You may think that you can just optimize one of your current websites pages for the chosen keyword. Yes you can but as I explained above, such a web page can not be a high AdSense paying page. The mains reason is that the website home page is optimized for a different keyword and Google doesn’t pay any reasonable commission to a single web page that its theme is different from the home page or the whole website.

Design your website:

I don’t know how much do you know about web designing but you just need to know a little about HTML and if you can work with Microsoft FrontPage, you can design your website on your own.

It is very easy to design a website for AdSense Arbitrage. The only thing that you should consider is that the website should look like a real website that is designed to give information and service to users not like the MFA or “Made for AdSense” websites that are merely designed to make money through AdSense. Google bans MFA websites from the AdSense system permanently. So you should avoid making or buying such websites.

How to make a good websites for the domain you have registered?

- Your website should have a unique, meaningful content especially on the home page. So try to write a good 300 words articles for the home page. This article should talk about the subject (keyword) you have chosen and so the keyword should be found in it few times in different places in the sentences and paragraphs. I mean you should optimize your home page article for the chosen keyword.Have an <h1> headline that includes the keyword on the home page. Also you can have some smaller <h2> and <h3> headlines that include the keyword.

- Have the chosen keyword on the website title and description. If you don’t know how to optimize the title and description, read three of my other articles here, here and here.

- Find at least 20 to 30 articles about the chosen topic (keyword), make a separate page for each of them, make an index page for them and place links to all of them on it, link home page to this article index page and at least 10 of the articles directly. The links should be pure HTML links with the default blue color that the hyperlinks have.

If you pay a freelance writer to write original articles for your website, it will be perfect and will help your Adsense revenue to be increased but if you can not do that, try to find good articles from article directories. Have the title of the article in an <h1> headline on each article page body. Also have the article title on the page title tag. It will be much better if the keyword can be found in the article title.

- Link to some of the other websites that are merely and exactly related to the chosen keyword. You can link to a few of them from the home page and also from the articles pages. Also you can make a separate page which is linked from the home page for this purpose.

- Collect more information about the chosen topic and post them on your website. For example if you have chosen the “laser hair removal New York” as the key phrase, find few laser hair removal centers in New York, list their name, address and phone number in a separate page and link the home page to this page. This is to help the users to have access to more resources and information.

Monetize the website:

Monetize the designed website with Google AdSense.

Don’t forget to have separate channels for the different sizes and pages. For example if you post three different sizes of AdSense text ad units in three different positions of the pages, you can have one channel for each of them. This helps you to know which ad works better than the others. Also if you want to have different websites for your AdSense Arbitrage business, the channels you make should be specific for each website. For example a channel named “laser-728×90-top” is specifically made for the top 728 x 90 banner at the “laser hair removal New York” website pages.

Click here to read one of my other articles about monetization of the web pages with AdSense, including choosing the ads color, size and position. Do not start sending traffic to your website before you make sure that your website is “AdSensed” properly.

You can also monetize your website with other kind of ads. For example you can check the ClickBank Marketplace and find one or two related products and link to them through your website home page and other pages. It will have two advantages: 1- it will increase your profit and 2- it will help your website to look much more different from the MFA sites.

Improve your website link popularity:

Now you have to let Google knows your website. When you place AdSense ads on your website pages, Google crawler will come and crawl your website in about 24 hours because Google needs to know what your website is about to display the related AdSense ads. But you also need to have some incoming links from other websites/weblogs to your site.

It will have a lot of advantages: 1- It makes your website different from MFA websites because the owner of such websites don’t spend any time to improve their link popularity. 2- It will make your website popular and so increases the AdSense revenue. 3- It will drive some more traffic to your website and increases your profit. It will help your website which is optimized properly to be ranked in search engines and receive organic traffic from them.

You can increase your website link popularity by writing articles and submitting to article directories, participating in forums and … .Do not exchange links with other websites. It not only will not be any help but will decrease your website value and can also have a negative effect on the AdSense revenue.

Make sure that your website is ready and Google is displaying the proper ads on your website. Then go to the next step.

DO NOT click on the ads on your own website.

3- Drive traffic to your website:

If the website you have designed could receive organic traffic from search engines, all the money you would make through the AdSense and other affiliate links, would be profit. Of course if you work on it and promote it on the search engines, it will receive traffic after few months but you have to drive traffic to it through pay per click (PPC) advertising by now.

What PPC program is more suitable?

AdWords is the best PPC program but it is not recommended for the Adsense Arbitrage. AdWords is the most expensive PPC program because it is popular and so there is a severe competition among AdWords users. AdWords is the most perfect, reliable and user-friendly PPC program for other purposes but not for Adsense Arbitrage because it is expensive.

After AdWords, Overture is the most expensive PPC program because it is the Yahoo PPC program and so is popular and competitive. But you can use it for AdSense Arbitrage because although expensive, it is much more cheaper than AdWords.

There is another suitable PPC program. Microsoft adCenter is much cheaper than AdWords and Overture and is so suitable for AdSense Arbitrage. But the problem is that Microsoft adCenter traffic is not as high as AdWords and Overture and so your website will not receive the reasonable amount of traffic. The best solution for this problem is using several different PPC programs. I suggest using the below PPC programs:

• Overture
• Microsoft adCenter
• 7Search
• SearchFeed
• Search123
• ABCsearch.com
• Miva
• Enhance
• Kanoodle
• LookSmart
• Ask Jeeves
• FindWhat

The above search engines are so suitable for the Adsense Arbitrage because the keywords are much cheaper to bid than AdWords. Adsense Arbitrage will make the maximum profit for you when you drive traffic to your web pages through cheaper resources while the ads you are displaying on the web pages are from the most expensive resource which is AdSense.

What keyword should you bid on?

Another secret in Adsense Arbitrage business is hidden in the bidding on the keywords.

- If you want to advertise on AdWords:
When you have optimized your web pages for a keyword and you want to drive traffic to them through AdWords (that I didn’t recommend it), you should not bid on the same exact keyword because that keyword is expensive to bid.

So what should you do? You should bid on the keywords from the same family that are cheaper. For example if your web pages are optimized for “work at home”, you should bid on free work at home jobs, work at home business opportunities, work at home moms, work at home dads and … .

All these key phrases are from the “work at home” family but much cheaper because they are more focused. Generally, wide spectrum keywords are more expensive but there are always some exceptions.

To find keywords of the same family, you can easily use Google Suggest.

Click here to read one of my articles about finding keywords using the Google Suggest tool.

- If you want to advertise on smaller PPC programs:

In this case you can even bid on the same keyword that your web pages are optimized for because the same keyword is much cheaper to bid in PPC search engines like FindWhat than AdWords.

So:
→ Advertisers bid on the keyword in AdWords.
→ You bid on the same keyword in smaller PPC programs that are much cheaper.
→ You display the advertisers ads on your web pages.
→ You drive traffic to the web pages through the cheaper PPC search engines.
→ Users click on the advertisers ads and what Google pays you, will be much more than what you have bid on the keywords.

This is the way that Adsense Arbitrage can make profit for you but there are still some other things you have to know to maximize your profit:

→ You make money only when users click on the ads, right?
Will all the users who visit your website click on the ads?
No! Most of them will close the window, click on back button or type a different URL in the address bar and leave your website before they do anything. So you have to maximize the chance of clicking on the ads. You can do it through well designing and optimizing the web pages and choosing the right colors and arrangements. Don’t forget to read two of my other articles about PPC advertising and AdSense optimization on the web pages.

→ Drive traffic to home page but have visible links to other pages related to the keyword and topic. Try to give good and useful information to users and keep them on your website as long as possible.

→ Monetize all the pages with AdSense not just the home page. Have the same theme, format, color on all pages.

→ Keep the record of every single cent of the money you spend, PPC programs that you advertise, the traffic your web pages receive and the money you make. Spend about $50 to $100 per day for advertising and keep the track of the money you make. Do this for one week. One or two days is not enough to know if the system works properly or not.

Although you should monitor everything everyday and every single hour, after one week make a precise assessment and calculate your profit or lose. If you have made a reasonable profit, good for you! If not, you should stop advertising and find out what the problem is. For example it is possible that you have started advertising very soon and before Google indexes your website completely and displays the proper ads. Or you have not designed and optimized your web pages properly.

The thing that you have to avoid strongly:

1. Do not click on the AdSense on your own website. It will decrease your commission rate and if you keep on doing it, you will be banned by Google and you can not make money through AdSense any more.
2. Do not ask your friends and relatives to come to your website and click on the ads. Google can easily find out and you will be banned.
3. Do not ask your website users to click on the ads. This is also against Google AdSense terms and conditions and you will be banned if you do that.
4. Do not bid too high on the keywords at the beginning. Start bidding and monitoring with caution.
5. Do not spend a lot of money at the beginning.

When you could make reasonable profit with the first keyword you chose, try to work on other keywords. I know it is hard to create a different website for any keyword but it works only in this way. You can not have just one website and optimize each page for a different keyword and drive traffic to it. It doesn’t work like that.

Smaller PPC programs are cheaper but the problem is that they have very low amount of traffic. So if you want to make reasonable amount of money through your AdSense Arbitrage business, you have to have several websites with tens of ad campaigns in different PPC programs.

Well! I think I explained everything I have learnt about AdSense Arbitrage. I will add more if I learn anything more. Hope I have not forgotten anything. If you want to run such a business and you have created a website for it, you can ask me to take a look and give some comments. I will be happy to be any help.

Please comment about what I have explained in this article. If you have tried the AdSense Arbitrage, just let me and others know how it works for you. Thanks!

Other articles to read more:
How to Maximize Your Profit in Pay Per Click Advertising
How to Find the Best Keywords with the Google Keyword Suggestion Tool
Does Adsense Arbitrage Really Work?
Why Your Google Adsense Revenue Dropped?
Adsense Revenue Model - A Complementary Legitimate Income
Google AdWords Management - You Can Do It On Your Own
Google AdWords Optimization - Do It Yourself