I wanted to start by giving you some history of me and my good friend Arbitrage.

If you don’t know what arbitrage is, it’s the simple act of buying traffic at a low price and monetizing it at a higher price.

It’s one of the simplest things for most marketers to put their minds around.

Find a cheap generic traffic source -> funnel them through to something that’s going to pay more than that generic traffic source.

This is the main missing component in most arbitrage campaigns.

Everyone knows that you buy cheap and sell high. But, how do you sell high? How do you do it all the time?

It’s actually quite easy. Let me give you a good example of something that I’ve done in the past.

Video game traffic campaign Case Study.

Everyone knows that video game traffic is one of the cheapest traffic sources on earth.

How do you take that cheap traffic source and arbitrage it?

You start with finding a way to funnel your visitors into something that’s higher paying than video games.

Here’s an actual example.

Let’s say that I’m buying traffic through a media buy on RandomGameSite.com.

RandomGameSite.com is a video game site. Now, since I want to funnel people into something more profitable I’m going to be picky about my media buy placement.

In fact, I’m going to have that banner placed on the female games category.

Next step is to create a banner that attracts females to another game site, which is just a glorified landing page that I have created.

This landing page is going to do a few things:

• I want them to perceive my landing page as a higher quality site than what they were previously on.
• I want them to think it’s more exclusive.
• I want them intrigued by the uniqueness (and higher quality) and excited to take action.

How do I do this? Simple, make them complete an extra step to get to your content.

In this case, I’m going to make them opt-in to a female only exclusive video games list. I’m going to promise them the most fun games around, the ones that are so addicting that they are not going to be able to stop playing.

The next thing I’m going to do is actually create another page with 1 single game (I might split test a few until I find the best game for this step.)

After they opt-in, this next page mentioned above is going to be to show them a connection between the video game and a product that is related to their demographic. And of course this will pay me more money than I spent to acquire that visitor to my site. (and also account for a % of people that will not take action.)

Now, since we are going to have almost all females, I’m going to raise their awareness of mostly feminine products like skin creams, pink bottled shampoos, hair irons, clothes etc etc.

What I’m going to do is create some “ads” on the game page mentioned above, that simply allows them to opt in to another email list. The ad itself will have an opt-in form.

I can’t just spam them with products unrelated to the video game list that I originally opted them in to, so this is the way to do it.. Even if I could… I wouldn’t, because it wouldn’t convert optimally.

What I really want to do is get them interested in these products by associating those products with the video game. I want them to think fun and games when they see these products down the road when I email them about special deals. This might increase conversion rate of them actually buying something, completing an affiliate offer or getting them to click an ad.

Like this method? This is only the tip of the iceberg. An upcoming high end product that I’m almost done with has a more in-depth look at this method amongst tons of other methods that are so simple to use lists, arbitrage and affiliate marketing together.

Keep your eyes peeled because I’m going to be announcing that product soon. It’s going to be completely re-defining and de-mystifying list building.