What is traffic arbitration?
This is the first lesson of the basic course on mobile arbitration, which we wrote about last week. In it we will talk about quite basic concepts: what is traffic arbitrage, what are the pros and cons of arbitration, and what is the difference between arbitration and affiliate marketing.
Text transcript | Presentation
The next lesson will be released tomorrow. It will discuss the participants of the arbitration market. Schedule for all lessons is available on the Mobio School website. You can ask any questions about arbitration in the comments or in our VKontakte group .
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To begin with, there are several ways to make money on the Internet:
Despite the variety of ways of earning, the model of earnings is the same:
(Product + People who can buy it) & Tell these people about this product = $
This formula also works in traffic arbitration. Listing the ways of earning, we highlighted the terms affiliate marketing and traffic arbitration under one clause, but it is important not to confuse these concepts.
Affiliate marketing and traffic arbitrage are two different things. We will understand them in more detail.
Affiliate Marketing (Affiliate Marketing) - a way to make money at the expense of a commission from the sale of someone else's goods. In this case, it is not necessary to have your product, you need to help sell someone else's product. As an example: any store that sells Pepsi is engaged in affiliate marketing.
CPA-marketing is a special case of any affiliate marketing. The only difference is that in CPA marketing we get paid for a specific action, lead or application.
Affiliate marketing requires traffic or users. At this point, there is a need to attract traffic. Traffic arbitration is a way to attract paid users to the application. You can also attract traffic for free, for example, start your video blog, collect subscribers and then bring them into the application.
If we look at the concept of “arbitrage” in a broader sense of the word, in economics this term refers to the type of transaction in which we sell the same product in different markets and earn a percentage of the difference from the sale. Take the currency as an example: we bought dollars yesterday, in order to sell them every other day and make a difference.
Equivalent arbitration is another method of arbitration, in which we earn on the difference of components. Any wholesale sales is an example of equivalent arbitrage. We buy goods in bulk and sell it at retail: we make money on the same product, buying it in different combinations. As an example, we assemble a computer by component and sell it as a whole computer.
In our case, mobile arbitration is equivalent to arbitration. We buy impressions and clicks, and sell actions and installations.
There are several models selling paid advertising on the Internet. Let's consider what methods exist:
CPT (Cost Per Time) - we redeem fixed-time posting on the site.
CPM (Cost per mille) - we buy a thousand impressions.
CPC (Cost Per Click) - we buy clicks.
CPA (Cost per Action), CPI (Cost per Install) or CPI (Cost per lead) - we pay for actions, installs, leads.
In mobile arbitration, we buy impressions (CPM) and clicks (CPC) at traffic sources, and then sell actions, installs or leads (CPA, CPI, CPL) to advertisers. Accordingly, we earn on the difference between buying and selling.
Let us analyze what traffic attraction is useful for business, and what are the advantages in the profession of an arbitrator.
For business:
For the arbitrator:
There are also negative sides to arbitration for both the business and the arbitrator itself.
For business:
For the arbitrator:
So, we have considered the concepts of affiliate marketing and traffic arbitrage, formulated the disadvantages and advantages of attracting traffic both for the business as a whole and for the arbitrator itself. In the second lesson we will analyze which participants are present in the traffic arbitrage market.
You can ask any questions about arbitration in the comments or in our VKontakte group .
Text transcript | Presentation
The next lesson will be released tomorrow. It will discuss the participants of the arbitration market. Schedule for all lessons is available on the Mobio School website. You can ask any questions about arbitration in the comments or in our VKontakte group .
')
To begin with, there are several ways to make money on the Internet:
- eCommerce
- SEO,
- advertising on your own content: publics on social networks, blogs,
- infobusiness,
- affiliate marketing, CPA marketing, traffic arbitrage
Despite the variety of ways of earning, the model of earnings is the same:
(Product + People who can buy it) & Tell these people about this product = $
This formula also works in traffic arbitration. Listing the ways of earning, we highlighted the terms affiliate marketing and traffic arbitration under one clause, but it is important not to confuse these concepts.
The difference between affiliate marketing and traffic arbitrage
Affiliate marketing and traffic arbitrage are two different things. We will understand them in more detail.
Affiliate Marketing (Affiliate Marketing) - a way to make money at the expense of a commission from the sale of someone else's goods. In this case, it is not necessary to have your product, you need to help sell someone else's product. As an example: any store that sells Pepsi is engaged in affiliate marketing.
CPA-marketing is a special case of any affiliate marketing. The only difference is that in CPA marketing we get paid for a specific action, lead or application.
Affiliate marketing requires traffic or users. At this point, there is a need to attract traffic. Traffic arbitration is a way to attract paid users to the application. You can also attract traffic for free, for example, start your video blog, collect subscribers and then bring them into the application.
If we look at the concept of “arbitrage” in a broader sense of the word, in economics this term refers to the type of transaction in which we sell the same product in different markets and earn a percentage of the difference from the sale. Take the currency as an example: we bought dollars yesterday, in order to sell them every other day and make a difference.
Equivalent arbitration is another method of arbitration, in which we earn on the difference of components. Any wholesale sales is an example of equivalent arbitrage. We buy goods in bulk and sell it at retail: we make money on the same product, buying it in different combinations. As an example, we assemble a computer by component and sell it as a whole computer.
In our case, mobile arbitration is equivalent to arbitration. We buy impressions and clicks, and sell actions and installations.
Ways to sell paid advertising on the Internet
There are several models selling paid advertising on the Internet. Let's consider what methods exist:
CPT (Cost Per Time) - we redeem fixed-time posting on the site.
CPM (Cost per mille) - we buy a thousand impressions.
CPC (Cost Per Click) - we buy clicks.
CPA (Cost per Action), CPI (Cost per Install) or CPI (Cost per lead) - we pay for actions, installs, leads.
In mobile arbitration, we buy impressions (CPM) and clicks (CPC) at traffic sources, and then sell actions, installs or leads (CPA, CPI, CPL) to advertisers. Accordingly, we earn on the difference between buying and selling.
What is good arbitration?
Let us analyze what traffic attraction is useful for business, and what are the advantages in the profession of an arbitrator.
For business:
- It's easy to scale your business: if you have a product and you offer a decent reward to partners, they easily scale sales and start selling your product in different markets.
For the arbitrator:
- No production and logistics costs.
- You are responsible for only one task: to attract traffic.
- Do not think about Customer Service: do not need to communicate with customers or suppliers.
- Low entry threshold: anyone without experience can begin to attract traffic, it is easy enough at the start.
What is bad arbitration
There are also negative sides to arbitration for both the business and the arbitrator itself.
For business:
- Partners are less responsible for the product.
- It is difficult to control the methods and methods of promotion that partners use.
- Partners can cause potential damage to the image and reputation, due to unfair ways of promotion.
For the arbitrator:
- The instability of earnings, which directly depends on the situation on the market.
- High dependence on changes in advertising rules, requirements and KPI advertisers.
- Constant stress level: there is high competition in the market, working campaigns that have worked and converted into a plus are constantly dying, you need to come up with new approaches.
Conclusion
So, we have considered the concepts of affiliate marketing and traffic arbitrage, formulated the disadvantages and advantages of attracting traffic both for the business as a whole and for the arbitrator itself. In the second lesson we will analyze which participants are present in the traffic arbitrage market.
You can ask any questions about arbitration in the comments or in our VKontakte group .
Source: https://habr.com/ru/post/321240/
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