Online marketing information can change quickly This article is 10 years and 120 days old, and the facts and opinions contained in it may be out of date.
Keyword arbitrage has been on basically since Adwords began I would assume. The essence of it is similar to the stock market…basically, buy the traffic low and sell the conversions high. If I spend .05 for for 100 visitors and one of them makes a purchase that I make $20.00 for I am in a good spot. Well, it sounds a lot easier than it is, but there have been lots of folks that are successful with it. I talked with several folks doing this recently in Vegas at Pubcon.
The bad news is…the rumor mills are churning, and Google will most likely be putting a stop to affiliates bidding on Adwords and sending traffic directly to the merchants with their affiliate ID’s in the Adwords Ad URL. The good news is they can basically still do the same thing by just creating a “doorway” page that leads to the merchant. This will make one more click for the user and most likely lower conversion for the affiliate unfortunately. Of course this is all still speculation, but Shak at WW has been extremely credible in the past with breaking stories like this, and his word is regarded highly by others (well, me for sure). I’m sure the official Google details will be brought to light soon enough, and this one will most likely cause a stink among those doing it, but ultimately probably improve Google’s bottom line. Keyword arbitrage was quite a clever system (and I just like saying “keyword arbitrage”), but it looks like the days are dwindling for this method…fortunately affiliates are quite a clever bunch, and I’m sure the technique will evolve in some way, shape, or form.