Ive had a few emails and follow up postings asking for more information about what I discovered when attempting Parking Arbitrage, so I wanted to follow up with posting about it. The first thing I discovered is that there is a big learning curve at first. It took me about a week of experimenting with domains and keywords and traffic providers until I found the right mixture, and began generating profit. I was making about 100% ROI (Net). Which basically means if I put $1 into the system, it generated $2. I was quite happy with my results, and was making about $50 per day in profit and had noticed that everyday I would make just a little bit more money.
What happened? Yahoo shut the gates. I suppose the argument that has been floating around is that its better traffic wise if the advertisers don’t get arbitrage traffic. However, this surprises me because this is traffic the advertisers wouldn’t get, if it wasn’t “funneled” from google or msn anyway. Basically now they are limited to only traffic from Yahoo.
I found that the most challenging part of Arbitrage was getting enough traffic at a reasonable price. My best keyword domain happened to be with “Boots”. I was buying traffic from boots and advertising “Knee High Boots”. I was able to get about 100 visitors per day from Google at about .18 each, and turn a click at parked into .24. Now you might say thats not much of a profit if your buying the keyword at .18 – but you must consider, the CTR was upwards of nearly 200%. That meant every visitor was clicking on about 2 ads each. I found that because I didnt have hundred of visitors per day, the 1 click landers worked out very well.
I managed to ways to get a 1 click lander instead of a 2 click. I was buying keywords that were hyphenated and in the .info extension. For example: engagement–rings.info. Because yahoo didnt care about the hyphens, it read the keywords and produced a 1 click lander. (This particular domain was not much of a success, it made little compared to others because of the cost of clicks).
When the system came to an end earlier this month I was quite disappointed. I had gotten to a point where I was making enough per day to cover rent on my home. I have no doubt that within another month I would be making a couple hundred dollars per day, with enough effort and luck. Its a shame they closed the doors on this process as just about the time I figured out how to do it, it all ended.