DNHour

Arbitrage is one of the most heavily debated topics in today’s pay-per-click, or PPC, realm.So it’s surprising to me that many domainers still have not heard about arbitrage. And just in case you’re one of the ones who haven’t, let me offer a proper definition, according to Dictionary.com:

“Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.”

As we can see above, arbitrage is nothing new. It has been used in regular commodities markets for a long time and now has made its way into the domaining world.

I, and others, tend to refer to arbitrage as alchemy — you start with a few pennies, setup an advertising campaign, and end up with a few dollars. How does it work? Well, before we discuss arbitrage in depth, let’s explore how current PPC advertising methods work.