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Native Ad Arbitrage - Site sold on Flippa made $11k profit its first month

Discussion in 'Making Money' started by mirzapolo, May 5, 2016.

  1. mirzapolo

    mirzapolo Newbie

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    This guys site just sold on Flippa the other day and he was making a consistent $7K-$18K profit per month buying traffic and monetizing with Google and content.ad. His site is mindbuzz and you can check out all the info on Flippa.

    Is anyone else doing any similar native ad arbitrage? He uses some management software - Prezna to make his campaigns and push them to all the ad networks and those. I'm assuming his sources are either Outbrain, Taboola, RevContent, Content.ad, or Yahoo Gemini as the software integrates with those networks. Has anyone else tried this software?
     
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  2. ChanzGrande

    ChanzGrande Elite Member

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    I'd be interested in more information about this general approach to making money. I haven't seen any real detailed walkthroughs of how these guys might be making native ads arbitrage work. I've struggled on almost all the major ad networks to effectively develop general converting campaigns, so I can only imagine it must be quite challenging trying to manage all this ad inventory, and find the right deals to maximize ROI. It seems like they must have had a pretty tight approach to keep losses minimized.
     
  3. MaxViral

    MaxViral Newbie

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    Guess why nobody posts about it ;) There is a lot of money in this content clickbait industry. Even the big players like Taboola need this sites like mindbuzz to get traffic.
     
  4. yuuzokun

    yuuzokun Jr. VIP Jr. VIP

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    I don't think 37K$ is a good price, It deserves more
     
  5. mrfunnysalads

    mrfunnysalads Newbie

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    Why would anyone sell for 37k a website that makes 10k a month? That makes absolutely no sense
     
  6. abhi007

    abhi007 Jr. VIP Jr. VIP

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    From what I have seen sites normally sell for 10x the money they are making so he is probably right.
     
  7. UptonGoodwin

    UptonGoodwin Power Member

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    Maybe the actual profit is a lot less though?
     
  8. mrfunnysalads

    mrfunnysalads Newbie

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    I guess so, since he is dealing with buying ads. But if you take a 10x approach the profit out of 11k would have to be 3.7k to sell it for 37k. That means he spent 7k bringing in traffic?
     
  9. Slashdot

    Slashdot Regular Member

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    I think the reason why the owner of the site sold the site is because he can duplicate the old site and have a new one making money in no time. It's all paid traffic, and as he already know what works, he probably has no trouble setting up a new one. He probably sold the site just to boost his monthly income.
     
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  10. Des_cartes

    Des_cartes Junior Member

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    Uhmmm that look interesting and the number adds up.

    CPM ~$61
    RPM ~$17
    With each visitor browsing ~6.5 pages (normal since it's using 'sliders').


    I might give it a try but you need a good advertisement budget to grow it to $10k/month, if other are doing it and want to give it a try pm so we can brainstorm.
     
  11. beingink

    beingink Senior Member

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    I am doing something similar, I even asked this yesterday in the threads if anybody is doing it.

    First
    37k is the right price for it maybe he could have gotten some more, but it's not exactly passive like SEO. You need to spend money to make money which lowers its value.

    Secondly
    On flippa he has mentioned that he is other sites like this and he just wants to sell this one. He clearly has this figured out and won't take long for him to replicate and start a new site.

    Thirdly
    If you can get your content to go viral or even a little bit popular, this can really blow up. So his earnings are not a shock. I read somewhere about a guy who starts 5 sites every year and takes them to multi million dollar valuations purely on facebook traffic. (I am copying this guy). I think the article was on thehustle can't remember though.
     
  12. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    Thing is its not that easy to make profit with arbitrage. selling website making $10k monthly for $37k ? only someone with half brain will do that. Maybe his profit is going down each month, its normal with arbitrage.

    I have not check his listing on flippa.
     
  13. osmokes

    osmokes Junior Member

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    Can't you read bro.. its not organic traffic.. what made him that amount of money is knowing how to set up posts on a website and buying traffic... he obviously has a conversion rate that makes profit.. and then simply scale it..

    He sold the site he has now for 37k.. and will probably have a duplicate of that same site on a different domain and repeat the process.. he will be up and running in a few days.. well worth the 37k..
     
  14. Slashdot

    Slashdot Regular Member

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    Now that I found the listing on Flippa, I'm a bit sceptical about the whole thing. I know that arbitrage sites can make money, but the figures of this current site are hard to believe. The guy claims to make $30k a month with little over 300k visitors. That's an RPM of $100. And that's crazy. I myself only get around $5-6 for 1000 visitors from organic traffic. I realize that his site probably converts better than my wannabe authority site, but his site does a little too good to be true.

    So, maybe there was some CF to manipulate the numbers?
     
    Last edited: May 12, 2016
  15. TayaX

    TayaX Jr. VIP Jr. VIP

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    Well there's a lot of uncertainty in this specific niche. Who knows what the advertiser policies or price will be in 3 months, things can change fastly. Plus as mentioned above, he has the model, he can replicate it quite fastly.

    According to the OP, profit is from $7K to $18K per month (if the wording is good).
    And once again, it's not a long term website. You can't just hope for 10 month on the same model. If money injection stops, revenues stops.

    $100CPM is crazy considering the type of traffic it is. I run several amazon website and my CPM is about $150, but that's because the traffic is highly qualified and organic. So yeah, in this model, the price sounds fishy.
     
  16. Downhillguy

    Downhillguy Registered Member

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    In flippa listing its showing as it was making "[h=1]making $30,916/mo"[/h]
     
  17. Verena

    Verena Junior Member

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    I run several website and my cpm is about $50, but that's because the traffic is highly qualified and organic.
     
  18. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Arbitrage is a tough ass business. But if you find the right article that goes VIRAL... kaakakakakaka-CHING!
     
  19. soulcollector

    soulcollector Senior Member

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    Sounds like bait to go try out the software. I run 90% of my campaigns on paid traffic for ecommerce and 10% via a focused seo campaign on long tails. If your site has no value (aka a true viral site) it will not hold conversions long ...
     
  20. bigstuffpoppin

    bigstuffpoppin BANNED BANNED

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    Anyone know this dudes traffic source?