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Site flipping and CPM

Discussion in 'Site Flipping' started by brainstorm1, Jan 26, 2012.

  1. brainstorm1

    brainstorm1 Jr. VIP Jr. VIP Premium Member

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    Recently I have been helping a friend monetize his website better and while on BHW I have stumbled on a possible money-making method. It is simple so I assume people use it / know of it etc.

    I'm not sure if it is legal or bh and if so I will make sure to not use it/promote it. In any case, I know there are a lot of websites with decent traffic, but are not making money because they use affiliate networks or CPC. What if I/someone were to buy a decently trafficked site (say 2000 page views per day) and change from Adsense/CPA to a CPM network? Then buy traffic from any number of cheap traffic sources on bhw.

    Example:

    - Site gets 2k page views from SEO, social media, etc.
    - I buy 10k traffic for $12 (i wouldn't do that as it would be too obvious - just an example)
    - If the average CPM rate is $6, then my site would earn $60 from that 10k traffic even though it costs $12. Profit per day = $48

    There may be serious holes here - can you punch them? Thanks for the help!!:eek:
     
  2. bryanon

    bryanon Executive VIP Premium Member

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    I haven't got a whole lot of experience with CPM so take everything I say with a grain of salt, but I do see a few major flaws in there.

    First of all, as you probably know, no CPM advertiser would ever allow junk traffic. While you can probably get away with it for a while, the risk involved is huge and more importantly, this set-up wouldn't be sustainable and therefore you will end up with a lot of sites flopping before you ever manage to resell them, or alternatively with a bunch of angry buyers in cases where the site flops shortly after the sale.

    Secondly, the average CPM rate being $6 is way off. Nowadays you get $6 CPM only for high quality, niche traffic. In niches that generally get a ton of visits (think computer games, movies, all sorts of other entertainment) the CPM tends to be closer to $0.06.

    But as I said - I have very limited experience in CPM ads so you might want to ask someone who knows more about it than I do.
     
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  3. poweronics

    poweronics Jr. VIP Jr. VIP Premium Member

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    The first point is very valid indeed. Junk traffic will not be easy to pass through CPM's and a ban may be the ultimate result form them.