Business Opportunity Tristan on 22 Nov 2009 08:38 pm
I came across this CPA Arbitrage e-learning product today whilst browsing Click Bank. I had a good read of the website, watched a few of the videos that were on there, mostly they just showed affiliate accounts with lots of money in them that the owner of the CPA Arbitrage system was running.
In fairness to the chap, he had made well over $500,000 in the last few years from internet marketing, but that was just his turnover, I wonder what he spent on advertising? You see that’s the thing with arbitrage, by its very nature, you are usually only making a small margin between what something costs versus what it can be sold for, and this differential should only be available for a short period of time - market forces should mean that over the long term the opportunity for arbitrage dissappears.
So how does the program work exactly? From what I could tell by reading the website and watching the promotional videos, they are buying up cheap traffic on Google then directing it to websites that are full of affiliate links for information products. These information products sell via online networks such as Click Bank, usually for a decent commission, sometimes as much as 75% commission!
The general premise is that if you make $10 commission, and you can buy a click for $1, and every 5 clicks you make a commission, then each click is worth $2, but is only costing you $1. You have therefore made an arbitrary profit of $1 per click. To make some decent money, just increase the number of clicks, simple!