Where to start in arbitration

Where to start in arbitration
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There are various methods of earning money on the internet: for beginners, browsing websites and completing tasks is suitable, while more experienced people can get involved in setting up advertisements, applying SEO or social media marketing. In traffic arbitrage it is possible to focus on one area or combine these skills

Traffic arbitrage is about attracting customers to products or services while getting paid for their actions. For beginners, it can seem daunting without losing your budget. We can help you get started in affiliate marketing and avoid mistakes.

When choosing a niche in arbitrage, you should consider that these are the products or services on which the earning rate depends. “How to get started in traffic arbitrage” includes choosing a product or service.

Niches can be divided into three categories:

Always in demand:

  • Nutra (health and beauty products, dietary supplements).

Advantages: easy to find the target audience, constant demand. Wide geography.

Disadvantages: some products are difficult to advertise, for example, products to increase potency.

  • E-commerce (range from gadgets to clothes).

Strengths: availability of profitable offers from small businesses to large platforms.

Minuses: high competition.

  • Mobile subscriptions.

Advantages: large selection of offers, profitability.

Disadvantages: difficulties for beginners, investments are required.

Relevance if properly presented:

  • Deiting and webcam – actively advertised directions.
  • Gambling – gambling with high deductions.
  • Betting on sports with high odds, but difficulties in attracting cheap leads.

Relevance in certain periods:

  • Tourism and seasonal goods such as thermal underwear or Christmas trees.

Advantages: high profitability in season.

Disadvantages: limited time of the advertising campaign

Choosing the right affiliate program

When choosing an affiliate program, base it on your goals. Compare the terms of different programs: for example, one may offer $6 per task, and another may offer $8. But remember that a high rate doesn’t always mean a reliable and transparent program. Explore several options before making a decision.

Communicating with the manager

The manager plays a key role in connecting you with the affiliate network. Make sure the manager is competent and willing to help you with your work.

Call center analysis

It is important to check the effectiveness of the call center. Even the most creative ideas can fail if the call center is inefficient, for example, it doesn’t know how to handle customer objections – this reduces conversion rates.

Geographic Market Selection (GEO)

Avoid complex geographic markets at the start, especially without an understanding of audience specifics. Start with more familiar markets, gradually moving to more favorable countries as you gain experience.

Approach new niches

Be careful with new niches. While it is sometimes possible to succeed ahead of the competition, new niches carry risks and uncertainty. Unlike proven ones where demand, success stories, and recommendations already exist, new areas require more thorough testing and strategizing to attract audiences.

Top 9 Niches for Traffic in Arbitrage

This list includes niches that many successful webmasters in traffic arbitrage started with.

Losing weight:

  • Covers women between the ages of 20-55.
  • High demand, especially during spring and summer.
  • Suitable for a variety of traffic sources.

Wrinkle Elimination:

  • Skin care products.
  • Wide target audience, opportunity for low-cost leads.

Loans and Loans:

  • ‘White’ niche with high repayments.
  • Market in growth, but attracting customers can be challenging.

Combating Harmful Habits:

  • Aimed at people over the age of 35.
  • Men and women who want to get rid of addictions.
  • Teaser networks, banners, topical resources are used.

Potency and Enlargement:

  • Target audience is men 18-25 years old.
  • High popularity, average payouts.
  • Restrictions on advertising, Push notifications and social networks are suitable.

Joints:

  • Aimed at people with chronic conditions and retirees.
  • Consistent popularity, lots of ready-made promotional material.

Casinos and Betting:

  • Huge audience, high stakes.
  • Payment for first deposit or percentage of play.
  • Ban on advertising on some major networks.

Dating and Webcam:

  • Includes regular and 18+ sites.
  • Audience is men 18-60 years old.
  • Suitable for newcomers to arbitrage.

Gadgets (Saving Electricity, Fuel):

  • Target audience – men over 30 years old.
  • No geographical and social restrictions.
  • Lots of opportunities for advertising campaigns.

Offers have been chosen, now let’s move on to the financial part

Review of Payout Models for Beginners in Arbitrage

To understand traffic arbitrage, it is important to familiarize yourself with the different payout models, their characteristics and features.

CPL (Cost Per Lead) – Pay Per Lead:

  • Paid for user completions, registrations, or submissions.
  • Converting a user into a lead is easier without requiring complex actions.
  • Payouts are smaller, about 0.5-4 dollars per registration.
  • A simple start for beginners with minimal costs.

CPA (Cost Per Action) – Pay Per Action:

  • Payouts are higher than CPL, but requires leading the user to a purchase, which is more difficult.
  • Includes actions such as registering, going to a website and taking a conversion action, buying a product.

Percentage on Product Sales:

  • Depends on the value of the item: the cheaper the item, the easier it is to sell.
  • “Impulse” purchases make it easier to sell inexpensive items.
  • Selecting expensive items increases the payout percentage, but makes it harder to sell.

Revshare (Revenue Sharing) – Share of Profit:

  • A payout made from the profit brought in by the user.
  • Can be used to evaluate the quality of traffic by beginners.

The affiliate network manager will help in choosing a model, suggesting the most suitable option depending on the source of traffic. It is recommended for beginners to start with the CPL model, and for webmasters with their own sites and those who use Facebook, the CPA model is suitable.

Choosing an Advertiser and an Offerer in Traffic Arbitrage

For effective traffic arbitrage, it is important to know how to choose the right advertiser and the right offerer. Here are the main types of advertisers:

Direct Advertisers:

  • Working directly with a manufacturer or company.
  • No commissions, net profit.
  • Disadvantages: no guarantee of payments, risk of changing the terms of cooperation, no manager support to optimize campaigns.

Affiliate Networks:

  • An ideal option for beginners.
  • Large selection of offers, guaranteed payouts, manager support.
  • Disadvantage: risk of choosing an unreliable partner.

Affiliate Programs of large platforms (e.g. Amazon, AliExpress):

  • Large number of offers.
  • Difficulty in choosing a profitable offer due to high competition.

Consider the following when choosing an offer:

Payout model:

  • It is important to look not only at the size of the payout, but also at the difficulty of promoting the offerer.

Analyze Top Offers:

  • Request information from your manager or look for the top offers from affiliate networks.

Offer Restrictions:

  • Pay attention to traffic, age, region restrictions.
    Study the prohibited traffic types to avoid losses.

Analyzing Statistics:

  • EPC (Earnings Per Click): The average revenue per click. Calculated by dividing the total revenue by the number of clicks.
  • CTR (Click-Through Rate): The ratio of people who clicked on an ad to those who took a targeted action. For example, 1:25 means that one out of 25 people who clicked through made a purchase.
  • ROI (Return on Investment): The return on an advertising campaign. Formula: ROI=(Revenue-Cost)/Cost×100.

Target Audience Research and Traffic Sources for Arbitrage Newbies

Identifying your target audience and choosing the right traffic sources are key to successful traffic arbitrage.

Understanding the Target Audience:

  • It is important to analyze the characteristics of an offerer’s audience: age, gender, interests.
  • Create a detailed portrait of a potential customer.
  • Ask your manager for statistics on the offer you are interested in to get more accurate information about the target audience.

Attracting Traffic for Beginners:

  • Paid Advertising: An effective but expensive method. Requires careful customization and keyword selection. Observe the conversion rate of different creatives.

Paid Source Options:

  • Landings: Necessary for product presentation. Can be created yourself or use pre-made options.
  • Social Media: Popular channel with quality traffic, but difficult for beginners, especially when promoting non-white offserts.
  • Google Ads and Other Search Engines: Provides excellent quality traffic, but requires significant cost and skill.
  • Native Advertising: Requires subtlety and audience knowledge, which can be difficult for beginners.
  • Push Notifications: Suitable for beginners due to ease of setup and affordable cost.
  • Teaser Networks: Good choice for beginners due to low cost and ease of use.
  • Popunder/Clickunder: The most affordable type of advertising, suitable for gray offsers and 18+ content.

Recommendations for Beginners:

  • Start with simpler and inexpensive traffic sources.
  • Avoid complex and expensive sources at the beginning of your career to avoid losing your budget and getting frustrated.
  • With experience, move on to more complex options.

Features of Conditional Free Traffic Sources

Conditional free traffic sources such as websites, blogs, social media, YouTube, Telegram and crowd marketing have their own features and require investment for successful monetization.

Website Creation and Contextual Advertising:

  • Requires investment in domain, hosting, content.
  • Requires time and effort to get to the top of search engines.

Blogging:

  • Builds reputation and expertise first.
  • Suitable products from affiliate marketing should fit seamlessly into the theme of the blog.
  • Content creation costs often include ordering from professionals.

Social Media:

  • Requires a significant time investment to create content and maintain activity.
  • You must have multiple pages or groups with a loyal audience to monetize.

YouTube:

  • Significant cost for equipment and possibly an assistant.
  • Requires a careful approach to selecting advertised offers.

Telegram:

  • Opportunity to create a popular channel, but promotion may require investment.
  • Native advertising and cooperation with other channels is effective.

Crowd Marketing:

  • Engaging in conversations on forums to introduce offerers.
  • Need a long time to build reputation and trust.

Performance Evaluation and Analytics:

It is important to analyze statistics and track performance metrics such as conversions. For beginners, it is recommended to start with Google Analytics. With experience, you can move on to more sophisticated analytics tools and training courses from professionals.

Alex Lead Panda

Alex is our traffic arbitrage editor, and his work is pure magic. He combines a deep understanding of online advertising with excellent editorial skills. Alex knows how to optimize content and make it easy to understand. His talent is not only in working with text, but also in understanding the needs of the target audience. And he does it all with ease and attention to detail, creating high quality content for all our readers.
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