Arbitrage

******Update******
Parked.com arbitrage must stop effective 1pm PST on Thursday, February 14, 2008
******Update*******

Bodis.com now allows arbitrage, http://www.bodis.com

Here’s another quick lesson fron Varon at Namepros.com regarding Arbitrage.

How do I Make Money with Arbitage?

A very complex question. First, you need to find a good keyword for your domain which pays decently well (at least $2 and above). That makes running a PPC campaign easier as you have a lower conversion ratio to break even. I mean if you are buying traffic for 0.25 per visitor, your break even CTR for the campaign will be around 13%. That gives you a safety buffer. It means that even if 1 out of every 8 visitors clicks through on your domain, you still break even. Anything better than 13% is your profit.

Keywords

Now finding the right keywords and running campaigns for high paying keywords using lower CPC keywords on programs like adwords etc is the toughest part. That is something you have to research on your own using keyword tools like wordtracker, KWD etc. I feel that the most successful person is one who has a good keyword analysis knowledge. If you find a keyword that is being searched for with literally no advertisers, its half the battle already won. You end up getting to advertise for pennies driving quality traffic to your domains.

Research, research, research, then trial and error.

Good luck.

Thanks again Varon,

You can vist Varon’s website at www.domain-parking-monetizing.com.

To learn more about Google ad words visit…

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