How to Earn on Traffic Arbitrage In Crypto In 2021

Today the crypto industry gives people many different opportunities to make money online. Over the years, it had been going through a tough period of establishing and now institutional investors and the world's famous entrepreneurs start growing their stash in crypto to gain more profit. Pouring large sums of money in crypto makes it one of the most prestigious and lucrative industries in the next 3-5 years. So, if you haven’t thought of trying to prosper here yet, then it’s probably the best time to do so.

One category of successful moneymakers who work with crypto is arbitral players. Their monthly income may vary between $2,000 and $5,000 and even surpass $10,000. Traffic arbitrage has been a talk of the town in digital marketing for many years. But before we talk about how traffic arbitrage works in crypto, let’s define the term itself.

Explaining Traffic Arbitrage

Those who are not novices in crypto may have already heard about arbitrage—when you buy an asset for the purpose of subsequent sale at a higher price. Actually, the concept of traffic arbitrage is the same and refers to a way of making money by driving traffic to particular websites. 

For instance, you purchase a pay-per-click (PPC) ad that only costs you $0.03 every time someone clicks on it. Once you do so, you need to sell your ad space to an advertiser who is ready to pay you $0.40 per click on an ad on your page. And viola, you net a $0.37 profit for every click you purchase.

Thus, arbitral players buy traffic at a lower price and then sell it to another firm at a higher price. In other words, they act as intermediaries who merge traffic with the benefit for themselves on the advertiser. At the same time, they are like typical investors who put money into advertising and other tools of promoting.

And What’s the Process?

Before you get a taste of traffic arbitration you need to figure out the mechanics of the system and understand why advertisers are ready to pay for this activity.

It all starts with advertisers who want to increase sales. They address the special affiliate services called “Cost-Per-Action (CPA) networks” to launch their own affiliate programs. For that purpose, they create several advertising tools, such as landings, banners, affiliate links, etc. Each tool is carefully tested and then offered to arbitral players or webmasters who decide to take part in a given program. The latter drives traffic to the advertiser’s landing page or website using ads and emails. Meanwhile, CPA networks provide them with all necessary analytics tools which show how many customers were attracted by a particular webmaster and how much money this webmaster earned. 

Ideally, it’s a win-win situation for all three parties — advertisers, CPA networks, and webmasters. But that’s not always the case, because arbitral players often go into the red due to misconfigurations and other mistakes. So, no matter if you’ve already had experience in traffic arbitration or only start diving into it, always invest according to your financial opportunities and chosen strategy.

Traffic Arbitrage Sources

One of the most prospective platforms for advertising is Facebook. More than a billion people worldwide use it and make online purchases on a regular basis. If you configure everything correctly, you’ll be able to attract leads at minimum cost. With Facebook, you can show your ads to people taking into account their age, native language, place of residence, place of work, education, interests, online behavior, and level of income. 

Depending on the strategy, you can direct your advertising efforts at generating traffic or increasing coverage, which gives you room for experimenting and trying out different solutions. Moreover, Facebook algorithms are able to analyze various groups of your target audience choosing the one that suits you best. This means that over time the price of one lead is getting lower. Another source that can be as effective as Facebook is Google Adwords.

Facebook has many limits and restrictions which concern the promotion of cryptocurrency-related projects. Even though in 2019 some of the restrictions were lifted, Facebook Ads policies still demand every cryptocurrency product that wants to advertise there to have prior written approval. Traffic arbitration players have been circumventing these restrictions by various means since Facebook had implemented stricter policies.

Do Your Own Research First

Currently, traffic arbitrage is one of the most promising online businesses. By the most modest estimations, traffic arbitrage in the US alone is a billion-dollar industry. But to become a successful arbitral player you need to spend some time and get into all finesse and nuances of the sphere as well as always keep up-to-date with ongoing events. 

The best way to stay fully in the context is to visit thematic forums. They gather together the industry’s big names and thousands of webmasters who share their experience, build necessary contacts and communicate in different networking formats. As a rule, this is where all relevant insights and the most actual trends are revealed. Be sure that taking part in such forums will return on all your costs and carve you a path to much bigger money.

You can also expand your knowledge by watching Youtube videos or reading numerous articles about how to earn on traffic arbitrage. But there are not so many niche media that give voice to real professionals and experts. The main paradox about the sphere is that the most appealing information about online business is mostly distributed offline. 

What Types of Offers Are There in Crypto?

Offer is a product or service you need to drive traffic for. There are 4 types of offers in the crypto niche:

• Education offers

They refer to discovering blockchain technologies for creating and trading crypto assets as well as investing in crypto-related projects. Facebook and Google consider education offers as “white” offers but individual webmasters usually avoid working with them due to low conversions that are on average about 2-3% (meaning that only 2-3 leads out of 100 are converted). This happens because the majority of people seek instant earnings and don’t really want to learn. 

The amount of payment is between $250 and $750 but it’s really hard to achieve a really high ROI with low conversions. Such kind of traffic is generally driven by large teams. As education offers are commonly regarded as acceptable, their accounts may exist for weeks and even months allowing webmasters to purchase traffic at a lower price with a potential ROI of above 200%.

2. Investment offers

These offers imply investment opportunities for people who want to get a passive income. Those may include percent allocation management module (PAMM) solutions when traders conduct transactions instead of investors while all received profit is shared among the participants as well as investing in crypto funds, coins and tokens. 

The amount of payment is between $150 and $750 and depends on a given geo and offer conditions. Investment offers give maximum conversions which can reach 20%.

3. Trade offers

Probably the most hyped offers in terms of promotion in crypto. Payments and conversions are similar to those typical for investment offers.

4. Automated trading offers

In this case, brokers provide investors with a special automated crypto trading bot. Payments and conversions are also similar to those typical for investment offers. Automated trading and investment offers are viewed as the most popular and profitable on a global scale, as there is an enormous money supply in these market segments and advertisers strive to build long-term relationships with webmasters who generate high-quality traffic. This is why crypto is not the place for any kind of fraud.

If you’re a newbie, then you’d better choose between the newest offers that will give you more chances to succeed. People are likely fed up with long-standing offers, which, furthermore, can be promoted by other more experienced arbitral players among the same leads. 

By the way, a lead is a website visitor who can be interested in a certain good or service. Actually, this is what you pay for when buying cheap traffic. There are also fees that are paid to webmasters for attracting every single lead. Higher fees mean a more profitable offer, so your perfect strategy is to search for affiliate programs with maximum fees and attract leads at the lowest cost.

Traffic Arbitrage in Crypto: Pros and Cons

If you already work or just want to start working with traffic, we recommend you to pay your attention to crypto because here advertisers are ready to:

• make big payments to webmasters;
• increase the number of payments or give benefits to individual webmasters or teams that have proved to generate high-quality traffic;
• pre-pay;
• provide webmasters with all necessary tools.

Among the aspects that can seem problematic to arbitral players are:

• need for considerable work in creating and testing proper promo tools;
• possibility of massive complaints when competitors come into play;
• a lot of scam offers;
• a few reliable advertisers and CPA networks;
• you’re better to have as many reserve accounts as possible;
• high financial threshold.

However, regardless of all these cons, you’ll be able to adjust to the new niche with a minimum experience in traffic arbitrage. Learn, try and make your first gains by attracting leads to your perfect offers. Good luck!

About the author

Denis Lagutenko is an entrepreneur with more than 10 years of experience in managing international advertising and affiliate marketing projects. He founded AdsProfit digital agency as well as ADSbase, an international integrated communications agency. A member of Forbes council, speaker of Synergy Digital Forum, jury member for “Business Success” award, and business blogger 2019 by FPA award.