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PPC Vs. Affiliate Arbitrage – Parts 1 & 2

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Jul 24, 2007 

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DM Confidential  |

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PPC Vs. Affiliate Arbitrage – Parts 1 & 2

PPC vs. Affiliate Arbitrage – Part 2
by Editor

Perhaps not quite a soft spot, but we have long followed and had a strange affinity for various forms of arbitrage. It is, in many ways, a representation of life at large – the pursuit of easy money, the ultimate cat and mouse game, of one-upmanship. As mentioned in Part 1, we have often followed those performing CPA arbitrage – lead generators, ringtone affiliates, i.e. those who buy clicks and receive payment by selling user data. We have not as actively taken a look at those who buy clicks but receive payment when users go one step further, by performing a transaction often a purchase of a physical good.  Here in Part 2, we explore the world of search arbitrage by affiliate marketers.

A. Coupon Sites – affiliate marketing has existed before paid search did, and the coupon site, one of the oldest iterations of affiliate marketing has existed almost as long as, if not before, affiliate marketing itself. Coupons sites occupy a unique niche. Those outside the affiliate space might not realize that the coupons on the site make the website owner money. As most of the offers promote specific products, the advertisers want to help affiliates so they provide incentives to the end user which in turn make their offer more compelling for the affiliate. Given the number of merchants, many coupon sites are actually quite sophisticated, true performance-based versions and the predecessor of comparison shopping sites. Many of the best search marketers got their start doing these sites and/or still do them.
Editor
DM Confidential
www.dmconfidential.com
e: confi@digitalmoses.com

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Tags: affiliate-marketing, arbitrage and CPA

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