The Truth About Passive Internet Income
by Marc Charles
“Wow, it can’t be that easy to make money on the Internet,” my son exclaimed.
This is what my son, and entrepreneur in development said after I revealed the Internet “arbitrage” to him.
When it finally dawned on him he was grinning from ear to ear.
Here’s the deal…..
The Internet makes “arbitrage” super easy.
But there’s a way to do it without a boatload of cash either.
That’s the one thing so-called “gurus” fail to mention…at least in their promos.
You WILL need some money. If you’re bankrupt, without a dime to your name, with bill collectors pounding on your windows…this may not be the best business to support yourself and your family.
But this is an exceptional side business.
There are thousands of markets you can leverage with this Internet arbitrage strategy.
In fact, I know entrepreneurs who are making money using this tactic in natural pet care, stock picking, car rentals, hotel reviews, farming, home schooling, and health and wellness.
Arbitrage is buying in one market while simultaneously selling in another in order to make a profit (minus transaction costs).
I performed arbitrage all the time when I traded commodities professionally.
Internet arbitrage is buying clicks in one area of the Internet and reselling it in another area.
This might sound complicated, but it’s not!
By the time I’m done with this week’s communiqué you’ll see everything clearly.
I’ll show you how to purchase traffic in one area at a low fee. Then I’ll show you how to you resell this traffic for a high fee.
An “arbitrage” is the difference between what you paid for traffic and what you can sell it for.
And get this…
Once you’ve set this business up…in some cases with a simple website… the business can practically run itself… on auto pilot!
Here’s an example of arbitrage in action…….
You could purchase a keyword advertisement on a pay-per-click network like ABCSearch, Bidvertiser, 7Search, or AdBrite for 5 cents per click (or less).
On pay per click (PPC) networks like those mentioned above…when a user clicks on your keyword ad your account would be charged whatever the going rate is, let’s say 5 cents.
When a user clicks on a keyword ad they would then be redirected to a web page.
The web page can be about almost anything. But this strategy works much better if the keyword ad and website landing page are related.
Let’s say the keyword ad and website landing page are about “vacation deals.”
The website landing page should be packed with useful information about “vacation travel deals.”
The website landing page might include resort reviews, testimonials, photos, breaking news, videos, and travel news.
Please don’t become overwhelmed with details or building stupid websites!
There’s no need to become overwhelmed with details and technical mumbo jumbo.
When it comes to making money and business I look for ways to reduce risk and the learning curve.
So…although there are some technical issues…you can get the help you need or retain freelance experts for less than you think.
Plus you can copy success.
Tens of thousands of entrepreneurs are making money and leveraging this arbitrage tactic…so you don’t have to reinvent the wheel!
Heck…..you can buy an Internet arbitrage business if you don’t want to do this stuff yourself from the ground up.
Two of my favorite places for Internet arbitrage businesses for sale are SitePoint Marketplace and GoDaddy Marketplace.
Let’s move on…
Your “vacation travel deals” website landing page is up and running.
Now…you can display advertising anywhere the site.
You can determine where advertising will be displayed, and how large the ads will be.
When it comes to Internet arbitrage, the best place to display advertising is in the middle of the top half of the page.
What’s more…and this is a BIGGIE…
It’s been proven people respond more favorably to ads which “look like” content.
This is one of the reasons savvy entrepreneurs build website landing pages which look like a search engine.
In fact, I developed a site which looks a lot like Google! It’s a successful Internet arbitrage website landing page.
Check it out here.
Anyway, whenever a user clicks an advertisement on your website landing page you get paid…..IF your site is displays Google AdSense ads or ads from a competing service like Yahoo! or Bing.
Here’s the deal…….
You can purchase clicks at lower prices resell this traffic on your website at a higher price.
Google AdSense is a program web publishers can run on their websites.
Google AdSense determines which ads to display on your website based on the content.
Each time a user clicks on a Google AdSense ad on your website, Google splits part of the ad revenue with you!
How easy is that?
You’re probably wondering, “Great….but where’s does “arbitrage” come into play?”
It plays out like this…..
You purchase clicks for a few cents at one location. You redirect this traffic to a website landing page which displays Google AdSense advertising.
When a user clicks a Google AdSense advertisement on your site, you get paid.
The “arbitrage” comes into play when you sell clicks on your website for five, ten, twenty, or even a hundred times what you paid for them!
Can you see why Internet entrepreneurs love this strategy?
Let’s say you purchased a vacation-related keyword on ABCSearch or 7Search for five cents each.
Users would be redirected to your vacation travel website.
Because your site is related to vacation travel, Google may display advertising on your site for a five-star hotel, Bahamas resort, or a special cruise package.
When a user clicks the Google AdSense ad on your website, you could receive 25, 50, or 90 cents per click… or more.
Granted…..50 cents per click won’t be enough to retire on if you only get one click!
Like I said….this is a great side business.
But once you get going you’ll see the power and benefit of arbitrage.
Let’s look at “arbitrage” from different angle:
- You buy 1,000 clicks at 5 cents per click = $50
- You sell 1,000 clicks on your website at 75 cents per click = $250
- Your Profit: $200 (for doing almost nothing)
Alright…. let’s kick it up a notch:
- You buy 50,000 clicks at 5 cents per click = $2,500
- You sell 50,000 clicks on your website at 75 cents per click = $12,500
- Your Profit: $10,000
I know three entrepreneurs who produce this much revenue every week!
One of the best ways to “test” this arbitrage strategy is to do it.
Some entrepreneurs spend too much time “thinking about” an idea or business opportunity rather than just taking action.
You could “test” this strategy for less $50 to see if it’s bogus or not.
The Internet Arbitrage Miracle Works!
How to Get an Arbitrage Website Up and Running Quickly When You Have NO Technical Skills and Even Less Money!
Here’s the one question I’m asked more than any other when it comes to an arbitrage websites is:
“How can I get a website up quickly and cheaply when I have no website building skills?”
These days it’s nice to have instant access to freelance web designers and programmers.
It’s almost important as skilled, honest auto mechanic!
Here are three sites for finding competent freelancers quickly:
CraigsList (look under resumes and computer services)
Webmaster World (commercial exchange and other areas)
There’s no way to completely avoid idiots and rip-offs on the Internet, and especially when it comes to retaining freelance help.
But it’s easy to check someone’s background. You can also read testimonials like on the sites above. eLance.com is a great place to find freelancers and read testimonials.
All you’ll need to test this strategy is a simple one or two-page website landing page. It shouldn’t cost more than $100-$200.
You can set up a blog in few seconds and run Google AdSense on it for FREE too!
You can also retain web design students. I’m not kidding! I’ve used students dozens of times.
Here are six sites for locating and retaining Web design students:
You can make money with Internet arbitrage. It’s that simple.
You can buy cheap traffic from one location and resell this traffic at another location at markups of 50%, 100%, 200% or more!
You’ll need to run Google’s AdSense on your website landing page in order to get paid.
***** Action Plan *****
One of the fastest ways to get moving in this business is to copy successful Internet arbitragers.
The AdSense Code by Joel Comm is good and so it The Best Damn Google AdSense Book by Harry Misner.
The best play of attack is to avoid getting overwhelmed with details and technical mumbo jumbo.
Objective: Get a website landing page or blog up and running in 7 days running Google AdSense.
Then purchase deep discount clicks and traffic on second or third tier PPC networks like ABCSearch or 7Search.com.
You can also bring yourself up to speed on the essence of arbitrage on WebmasterWorld and The Warrior Forum.
Publisher Revenue Programs (like Google’s AdSense)