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Where is the arbitrage?
by dfc 11y ago
Where is the arbitrage?
- kposehn 11y agoThe arbitrage is where you purchase clicks for less money than you gain in commissions. It can be fairly lucrative if executed well. The problem in the long run is that you're constantly working to find the next thing before the current tactic gets saturated. For example, the ad in the article is no longer possible on Reddit and most sources of cheap clicks to Amazon will get you banned from the program (they have stricter guidelines than you think for traffic sources) Unless you stay ahead of the pack, your avenues for cash flow will rapidly close most of the time.
- jmarbach 11y agoPay $0.02 per click, send that click to Amazon, earn $0.04 per click. Earn $0.02 per click margin for funneling cheaply acquired traffic to an entity that is willing and able to pay more for that click.
- AznHisoka 11y agoI'd love to know where you can pay that amount per click
- jmarbach 11y agoThe cost per click is dependent on an ad with a high CTR, in addition to a low cost per thousand impressions. Reddit ads, as mentioned in the post for example, are one place with low priced ad inventory.
- beeboop 11y agoYou pay reddit per impression, not per click. Getting an ad that works out to $0.02 per click is not as easy as it sounds, especially if you're just trying to make them buy something on Amazon. Clickbait doesn't lead to sales very much, and advertising to capture attention of people who'd actually buy it leads to a very high cost per click.
- hayksaakian 11y agobuy CPM (impressions) and use a crazy clickbait ad
- dfc 11y agoAmazon does not pay associates per click. You are essentially purchasing sales leads from reddit. This is not arbitrage. Buying lottery tickets from a gas station and bringing the winners to the bodega next door is also not arbitrage.