Niche Marketing vs. PPC Arbitrage

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Numbat

Fair to Middlin'
Jun 26, 2006
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Ok - I think some of the less experienced folks may be a bit confused with the difference between niche marketing and PPC arbitrage. It seems like the two are a little interchangable, so it's not always clear what you should be doing for which. I'll try to sum it up as best I can, and then list a few of the questions I have.

My understanding is this:

For niche marketing, you want to find keywords with decent traffic that nobody else is targeting. You make a site about it, do some SEO, and get natural search traffic. You want to have good, original content, and as much of it as you can write. You shouldn't expect to make a ton off any one site, but if you have a lot of sites, you can do very well.

For PPC arbitrage, you want to target really high-paying keywords. You don't need any original content - just enough so your AdSense or YPN ads come out right. You only need a single page (or a few pages at most).

One question I have is what level of traffic you should be targeting with PPC arbitrage. It seems like most of the high-traffic, high-paying keywords are flooded with bids ($2.00+) on 7search. I've heard it said often that you shouldn't pay over $0.05 per click, which seems to indicate that you should be taking a niche approach to PPC arbitrage as well - go for uncontested keywords that don't have a lot of traffic but also don't have a lot of competition. Is that correct?

One final question - do people have any general rules of thumb for what an ad should pay on Google or overture for it to be worth going after with arbitrage? Or how much search traffic on 7search it has to get to actually get some clicks?

Thanks!
 


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