What is Adsense Arbitrage ?

The technique of purchasing cheap traffic and driving it to a landing page optimized for displaying expensive Adsense ads. Here’s a quick example to illustrate this further: Someone purchases inexpensive pay-per-click traffic centering around the keyword ‘inexpensive toys’ for a mere 7 cents per click. The ads in this campaign direct a user to a website (eg: expensivetoys.com) that displays Adsense ads targeting a more high-paying keyword such as ‘expensive toys’ for 7 dollars per click. If even a fraction of users landing on this site click on the ads, the owner stands to generate a reasonable profit, as he will have earned more than he had spent.

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What is Affiliate Commission ?

Denotes the percentage of the sales price an affiliate earns if a customer referred by him goes on to purchase a product/service via his link. Affiliate commissions vary greatly, depending on the type of product/service being sold. For example, you can expect to earn between 25% and 75% commission on downloadable digital items such as ebooks or software. In some instances, you may even get paid 100% in commission direct to your PayPal account! As for physical products, commissions usually range from 4% – 15%, mostly because these items need to be manufactured offline, stored and then shipped. That’s not to say you’ll earn more promoting digital items; selling physical products via your affiliate link can easily add up if they are high-ticket items. For instance, it would be better to promote a vacuum cleaner priced at $500 with an 8% commission (you’d pull in $40) than it would be to promote a $47 ebook with a 50% commission (you’d earn $23.5).

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What is an Ad ?

In online marketing parlance, an ad (or advertisement) refers to publicly advertising/promoting your website, product or service on the Internet. An ad can be placed using various mediums including authority websites, popular forums, classified sites, press release sites and of course, major search engines. While some forms of advertising are paid, there are plenty of other platforms that enable a person to place an ad completely free of charge, something that’s unique to online promotion. Advertisements appear in several formats and can be grouped into different categories such as graphic (banner ads), audio and video ads as well as plain text ads (classified ads). In addition to being able to include your emaill address, telephone number and physical location, you may also insert link/s to your website/s in your ad. Please note that advertorial content does not count as ‘normal’ page content due to the purely promotional nature of the information.

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What is an Ad Impression ?

The number of times an ad is displayed on a user’s screen. If for some reason, a user does not view the ad (for eg: it might be placed at the bottom of a web page), a single impression is still counted. Another point worth noting is that more often than not, advertising is sold and paid for based on the number of ad impressions being offered.

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What is an Adsense ?

Run by search engine giant Google since 2004, the Adsense program enables website owners from all over the world to profit from their content by publishing relevant ads pulled from the Google Adwords system (big G’s pay-per-click platform for advertisers) on their pages and generating an income if visitors click on the ads.

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What is an Adwords ?

Google’s paid program for website owners wanting to advertise their products and services to the search engine’s massive user base. The platform allows advertisers to determine the exact keyword phrases he wants his ad to be shown for, as well as the maximum fee he’s willing to pay for each click. And every time someone clicks on their ad, the advertiser pays Google this fee. Furthermore, the position of his ad in the search results is based on the number of advertisers bidding on the same keyword and how much they are willing to pay per click.

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What is an Affiliate Link ?

A unique link provided to the affiliate by the merchant to promote a product or service. This link contains the name/user id of the affiliate and is used to keep track of all the sales he generates, so commissions can be paid out accordingly.

Here’s an example of an affiliate link: expensivetoys.com/userid=joe176

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