The topic of the day, arbritage. My definition of arbritage is the process of buying traffic from search engine A and sending it to a parking page/landing page/vertical page and hopeing that the surfer will click or buy from your page. In the domain parking business usually people go to Google and buy an ad and send it to a parking page that is using Yahoo. This is done because Google allows this to happen on their end, but Yahoo normally does not allow you to send traffic to a normal domain parking page.
I know of many companies that make millions of dollars a month doing this, something that may one day even go public. The biggest problem with this in my eyes, you are paying lots of money to make just a little bit of profit.
So people start going to second tier, third tier, and fourth tier search engines so they can pay even less. What happens with arbritage in all cases is that your traffic quality basically sucks. Sucks so bad that I have on many occasions seen people go from making $50,000 a month to $250 a month once I ban the search engines they are using.
I know of another person who recently came to us from another Yahoo provider who was booted from them because he had low traffic scores and all of his traffic was coming from Google and 2nd tier search engines. After I killed most of his 2nd tier search engines he's now doing very well with us, but he's only making a 10-20% margin.
Would I personally do any arbritage? I think personally think the risks outweigh the rewards, but it is not against our rules as long as you are sending traffic to the same type of domain. Sending traffic looking for car insurance and sending it to a car insurance domain is fine. But as I have said on many occasions, I have stopped people from sending us that type of traffic because it may seem like a quick buck, but it's really not.
Donny