Is Adsense Arbitrage Worth The Risk

Everyone wants a quick easy way to make AdSense cash; a way that doesnt require too much research, too much web building and too much content. With everything about the internet been so quick and easy, why shouldnt AdSense be the same?

But it soon dawns on every beginner that the scheme isnt as free and easy as it seems. To make money from AdSense requires a lot of work. Forget the cheap looking sites claiming they have the key or secret to AdSense success. The fact is that there is no secret; the key to success is good old fashion planning, organization and hard-work.

However, some AdSense publishers have developed quick (though not easy) ways to make money using AdSense to the annoyance of Google. These methods are often looked down upon by Google and they have taken some very tough measures to cut down on the illegitimate use of their scheme.

But due to the nature and size of the scheme there are always going to be publishers that will attempt to find easy ways to make AdSense cash. One such way is AdSense arbitrage.

For a time it seemed that AdSense arbitrage was the simple way to earn easy AdSense money. And for years the method worked to the chagrin of Google. But recently, however, the situation has changed.

But first what is AdSense arbitrage and how does it work? AdSense arbitrage can be quite a complex process, but in its simplest form it works by paying for cheap PPC advertising schemes like Googles AdWords, Yahoos Search Marketing or MSNs AdCenter and directing the visitors that click on the ads to a webpage containing high paying AdSense ads. AdSense practitioners can either bid on specific keywords with large bid gaps or they can choose to bid on low cost keywords and direct visitors to landing pages with more general and competitive keywords.

So in principle you could use Google Adwords in conjunction with AdSense to rack in the money… as long as you choose your keywords wisely. You could pay as low as $0.50 for a keyword in Adwords and direct the traffic to a web page with AdSense ads that pay $1.00. It seems simple on the face of it but theres more to AdSense arbitrage that meets the eye.

Firstly, you dont get the whole cut from a click as an AdSense publisher. You only get 60% of the Adwords price. So you would get $0.30 profit using the example above… ideally.

However, Google has incorporated smart pricing into the AdSense scheme and this has completely dissolved the crucial 60% cut once enjoyed by serious AdSense arbitrage practitioners. Basically smart-pricing has been introduced by Google to scuttle anyone practicing AdSense arbitrage. It basically re-adjusts the cost of particular AdSense click depending on if it is likely to result on actionable business such as a sale, phone call, registration etc…

Unfortunately, anyone can be targeted by Google for smart-pricing. No AdSense account is safe and publishers that use AdSense arbitrage should beware.

So is AdSense arbitrage a serious viable way to use Adsense? The method in essence is cheating. Anyone caught using the method may be banned from the scheme. But there are possibly hundreds of thousands of websites that innocently contain AdSense ads, that may also have a PPC advertising campaign promoting them. The many publishers owning these sites are practising a subtle form of AdSense arbitrage without even realizing it.

Theres no way Google can ban a large section of its client base. What can they do? How could they be sure if a particular publisher is practicing AdSense arbitrage?

There is no easy way to know for sure.

But for anyone suspected of using arbitrage they could be hit with smart-pricing. This in essence dissolves any profit margins they would have had using the method, eliminating any incentive to use it.

AdSense arbitrage is now very difficult to practice effectively. Google, after discovering a problem with their AdSense scheme have developed a clever solution to the issue. It is by no means a complete solution, but it is powerful enough to drastically decrease the number of publishers that use the system.
If you want to use Adsense, the slow patient, but ultimately rewarding method of building quality, information rich sites to display your ads is the best.