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Death Of Adsense Arbitrage: Is The Party Over?

Death Of Adsense Arbitrage:  Is The Party Over?

Is there really such thing as too much of a good thing

? Apparently, there is. Take for example Google Adsense. When it first began, it seemed like manna from blogging heaven. In fact, it's probably one of the major reasons blogging exists and continues to do so. It's been so great that many publishers have reported earning from four- to five-figure incomes a month. But with the death of Adsense Arbitrage, this profitable marriage apparently is destined not to last. Worse, no one seems to be exempt.

What is Adsense arbitrage anyway?

Adsense arbitrage is a practice inspired by the Google Adsense business model where bloggers get paid for doing what they like and do best writing and sharing content. The Adsense model is so well-founded that many bloggers have profited comfortably from it, some of them even making it their main source of income. Unfortunately, this well-built model also meant that it was only a matter of time before the system got corrupted. This time, not by some mean virus but by a practice called arbitrage.

Arbitrage, put simply, is the simultaneous act of buying and selling. Simple and innocent enough, no? Unfortunately, the definition doesnt end there. Arbitrage further means that the transaction involves the same commodities, bought and sold in different locations or markets with the sole purpose of making a profit with no risk and within a very short period of time.

How does Adsense arbitrage work? Quite simply, Adsense arbitrage involves creating a site that is made with sole purpose of maximizing profits from Adsense. These made-for-Adsense sites are also referred to as MFAs. The practice of arbitrage starts when you buy a keyword at a very low price, usually from some of the most popular advertising programs such as Adwords, MSN AdCenter and Overture from Yahoo Search Marketing, among others.

Then, you use this cheaply-bought adword in your website where you write about the kind of topics that will attract advertisers who will pay good money for ads. If your visitor clicks on that cheaply-bought ad and again at a more costly ad, you pocket the difference less Google's cut, of course.

In the most simplistic terms, Adsense arbitrage will work like this: Say for example you bid $5 for a one keyword and then use that keyword on a landing page toward which you will direct excellent traffic. That keyword, once it appears as an ad, already pays $10 double the amount of what you paid for originally. So for all your troubles, you pay only $5 and pocket 100% profit. Although profit doesnt always work out this big, that is essentially how Adsense arbitrage operates. On a much larger scale, you'll reap excellent dinero.

So what's wrong with that?

From the point of view of many publishers and Adsense arbiters (if you can call them that), nothing. But every good thing has an equivalent dark side. Adsense arbitrage is no exception. Why do you think this whole arbitrage business has been running low under the radar all this time? It does have something to hide, which accounts for the whole 'Death of Adsense Arbitrage' bit. Here's why:

The point of building a website in the first place is to offer great content, something that visitors will like, make use of and come back to again and again. This is actually the reason why advertisers target certain sites because these site publishers can be counted on to produce reliable content.

Unfortunately, Adsense arbitrage has tended toward becoming large-scale, which means advertisers might be lured to MFAs more and leave content-sites smarting, regardless of how well their sites are built which defeats the purpose of building a site in the first place. If everyone starts using Adsense arbitrage, it's only a matter of time before the internet is awash with sites whose sole purpose is to sell, sell, sell, whether directly or indirectly, having contents that may not always be useful for visitors. This is a worst-case scenario, though, considering that things always seem to right themselves in the internet and it's only a matter of time (again) before they are managed and things go back to where they were.

This is probably one of the reasons Google is putting its foot down firmly on the arbitrage practice, which resulted to the death of Adsense arbitrage buzz. Google is now focusing on what they call 'quality initiative' drive targeting site content, shutting down sites they consider as being 'unsuitable business models', such as those sites that once thrived on Adsense arbitrage.

Good or bad, it doesnt matter now. Since the death of Adsense arbitrage finally put a stop to the practice, one can only wait for the next big thing to emerge. In the meantime, it's either back to writing better content or back to the old drawing board to design a way to multiply profit without breaking a sweat.

by: Elijah Chai
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