What is affiliate marketing and traffic arbitrage?

Affiliate marketing is one of the ways to make money online. It is often confused with concepts such as CPA marketing and traffic arbitrage, but these are different terms.

If you are interested in moneymaking, earnings on affiliate programs, in the article about traffic arbitrage on the ProTraffic.com website you will easily understand these terms. Or read the text below.

What is affiliate and CPA marketing

Another name is affiliate marketing. This is earnings on a commission from the sale of someone else’s goods. It is not necessary to have your own products for this, so the process is easier than starting your own business.

The most popular affiliate marketing model is the placement of referral links. Example: in the description under the video on YouTube there is a link, by clicking on which, the user will be taken to the advertiser’s website. If he makes a purchase there, the blogger will receive a reward – a commission from the sale. This also includes promo codes.

CPA marketing is a kind of affiliate program. In this case, the blogger will receive payment not for the purchase of goods by the user, but for the performance of the target action. For example, filling out a form, downloading an application, subscribing to updates.

How to make money on affiliate

There are three parties involved in the affiliate marketing scheme:

• advertiser – product creator;
• partner – a person or group of people who attract customers;
• the customer is the consumer of the product.

Each member has their own benefits. The advertiser saves on creating a campaign, while receiving:

• brand recognition;
• sales profit;
• increase in the client base.

The partner acts as a seller. It has two main benefits: advertising money and expanding its own audience.

The client receives the product he needs on the recommendation of a person or resource he trusts.

Often the partner and the advertiser interact directly, sometimes through the affiliate network. It acts as an intermediary and provides payment guarantee, technical support, and access to advertiser offers. Partners in such a network find it easier to find a job and get paid more securely.

What is traffic arbitrage?

For affiliate marketing to work, you need people who will take advantage of the advertiser’s offer – customers. The process of finding and attracting them is what traffic arbitrage is.

The advertiser is looking for a partner and offers him a fixed price for traffic – one user who will buy the product. The partner looks for such a potential client and offers him the advertiser’s products. He buys, the partner receives his money. Thus, arbitration is just a tool for affiliate marketing.

If a partner incurs some costs to attract customers, the advertiser does not pay him. Example: a clothing store offers an affiliate 5 dollars for 1 person who came through his link and bought a product. An arbitrageur sets up a $50 ad and it brings 30 customers to the store. The company pays him $150. The net profit of the arbitrator is $100.

What are the benefits of arbitration

There are benefits for business owners. With the help of arbitrage, it is easy to scale a business, as a large new audience will learn about it. If you offer partners a decent reward, there will be a lot of people who want to find customers. It’s more profitable than setting up ads.

For an affiliate marketer, attracting traffic is a convenient moneymaking. The main advantages of this activity:

• no big extra expenses;
• there is only one task – to attract traffic;
• no need to communicate with suppliers;
• anyone can learn.

More information about the intricacies of traffic arbitrage, the features of this work and the latest news in the field can be found on ProTraffic.com. Anyone who wants to earn money can use affiliate programs on the site. Also here are useful materials for beginners from the leading specialist in affiliate marketing Tatyana Lapina.

What should an arbitrator do?

To attract traffic, the following tools are used:

• contextual or targeted advertising;
• advertising posts on their blogs;
• advertising with bloggers;
• own site;
• YouTube channel and others.

When setting up advertising, it is very important to be able to analyze the result.

The profits of those who work in affiliate marketing are practically unlimited. It directly depends on the activity of the audience and the ability to set up advertising. It is also influenced by the general situation in the market, especially the changes relate to people working in one specific area. The main thing is to spend less on promotion than you receive from the advertiser.