Need some clarity using Adwords keywords properly

Alright so let's see if I have this correct. Example scenario:



1. Load up a Keyword search program (I have keywordspy)

2. Using Google type in keyword(s) related to my business


For example: music promotion


3. With the keyword tool it is revealed that my competitors are paying x amount CPC and I can also see what other keywords they are using effectively

4. I notice one of my competitors keywords has a very realistic affordable CPC that I would like to use for my campaign.

For example: promote my band

5. Knowing that those terms would bring low CPC traffic to my site I then purchase a domain name called: promotemyband.com or .whatever

6. Launch my own Adwords campaign with the target keyword & CPC mentioned

7. Perform all the standard LB/SEO/SEM magic outside of Adwords..


And yahtzee?

Not a single reply or just don't know?

It's called arbitrage.

Two problems:
1. your CTR on your site. you pay for all your clicks, but don't get paid for all of them. If your CTR is even 20%, you need to get paid 5x more than you pay just to brake even.
2. Domain, time, links etc - cost money, and your low CPC keyword may get you only a few clicks, so you can make barely anything.