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What is Google Adsense Adwords Arbitrage & Disadvantages of Arbitrage

Google AdSense Arbitrage is sort of a "riskless business model" that is increasingly being adopted by online web publishers to generate revenue from AdSense and AdWords.

Here's how the Adwords AdSense Arbitrage system works:

An individual (or a company) buys cheap Google AdWords ads to drive search visitors to their own site where they write about topics that are likely to attract high-paying ads (e.g., health, medicine, loans, legal cases, etc.).

If a reader or search visitor clicks on this cheap Google ad to come to their site, and then leaves the site by clicking on an expensive ad, the website owner makes money on the difference, minus Google's commission.

The minimum bid for buying a Google AdWords ad is 1 cent so anyone can experiment without spending a whole lot of money but frankly speaking, AdSense Arbitrage may not be the best way to generate income from AdSense. Here's why:

1. People who have already clicked on an ad are much less willing to keep clicking on more ads.

2. You will never get a 100% CTR - and every visitor exiting your site without clicking the "high-paying" ad will make you poorer by at least 5 cents.

3. Even if you provide no exit routes other than AdSense links, people may always close the browser window or type another URL in the address bar or click on bookmarks.

Also see: Made for AdSense Websites Face the Axe

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