Adsense Adwords Arbitrage : A money making idea which was a huge hit years back when adsense publishers used to generate millions of $ every month. Well this is not a trick or any idea using which you can scam the adsense team or get huge amount of clicks suddenly to your acount.

What is Arbitrage?
Originally the word Arbitrage was taken from financial sector which meant buying securities from one market and immediately selling in another marker making some decent profits instantly with the price difference. Its like you buy some stocks at 40USD in one market and would sell of the same in other market at 40.23 USD making a risk free quick profit of 23 Cents. The amount made per transaction is very small but if the whole trading is done in bulk then the overall total would just grow up and convert out to be a big amount.

What is Adsense Arbitrage?
Google Adwords is a service by Google where in you can advertise your website/services in order to convert business, increase leads, increase sales or basically in short a system where you can advertise and make payments on the basis of clicks/CPM adverts. Google adsense is just the reverse system where in publishers signup to make money from the ads displayed on their websites and get paid for the clicks they get from their visitors.
Adsense Arbitrage means advertising your high paying adsense income making website on adwords and getting cheap traffic and trying to make up some easy money. Let me show you a simple example on how this can work.

Arbitrage System Example :
A Adsense Publisher starts a website with huge amount of adsense ads to maximise revenue in the form of high CTR, also by having high paying adsense niche related content and then advertising the same page on Google adwords by paying the lowest charges per keyword.

Practicle Example
A Adsense Publisher is making 30 Cents/ Click on a certain niche on an Average from his webpage because of some high paying niche he has discovered and has placed adverts on his landing page in such a way that he has got a CTR of 15% which means that out of every 100 visitors every 15 would click on this ads on average. Out of 100 Visitors, when 15 people click on his ads , her gets paid 15 Clicks * 30 Cents/Click = 4.5 USD
Now he starts advertising the same page on Google adwords making the lowest bids possible which is 1Cent/Click currently and this way it would cost him around 1 USD cost to get 100 visitors to his website and he would make 4.5 USD from the same, even if his CTR goes less or his Earning/Click goes down he can still make income with some small difference, and these arbitragers would generally advertise on the scale of thousands of dollars and get back huge amounts of money.

Future of Arbitrage :
There are quite a few adsense publishers who are still doing this system, but iam sure that it would not work out because adwords has implemented Quality score and other measures which can increase the overall costs of campaigns if the pages are not useful and have less CTR etc. Couple years back there were huge amount of adsense publishers who made thousands of USD using arbitrage but now it does not work out and this is something google does not want too because this way their whole network would be filled with low quality spam like pages and this would make them lose business in the long run.

Arbitrage Risks :
You may lose your adsense account if google finds the traffic source.
You cannot expect a huge CTR because the visitor has already come into your website through a adwords ad.
Even if you dont have any Exit link the visitor would just close your website and make you lose the ad cost.
You cannot always expect a high income per click on the adsense ads.

This article is written to provide you information on how the Arbitrage system works and why should you not try it and make sure that this system is dead now, even though some adsense publishers are still trying it out.