[Traffic Arbitrage] CPM Success Calculator - Publisher Profit Formula

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Deleted member 813988

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Everyone is looking for a secret formula to become successful in the Traffic Arbitrage business.
I hear a lot of questions - how much traffic should I buy? what budget? how much money will I make?

I am going to share a simple formula, a calculator that can give you an idea what should you have in order to make a profit doing Traffic Arbitrage. This formula is helpful for those who are just looking to start, as well as for those who already started.

While it is hard to predict the results you are going to get before starting, it is possible to calculate the worst case scenario basing on which you will know what kind of performance is needed.

I built a simple tool - CPM Success Calculator that works on a simple formula and works in 3 steps.

Step 1 - Enter CPC, the price per single visitor.

If you already started traffic arbitrage you already know what you pay per user (considering you have paid traffic, not just SEO). If you haven't started yet, you can simply google for rates or ask here.

Step 2 - Enter Total CPM. The total CPM is the combined CPM rate per all networks you work with or plan to work with. If you work with AdNetwork A and it has $2 CPM, AdNetwork B - has $0.90 CPM, AdNetwork C - $5 CPM, the Total CPM would be a $7.90 .

Step 3 - Calculator shows the minimum number of Pageviews necessary to break even, whatever is after that is profit.

So, let's say you pay 5 cents per click, your total CPM is $7.90 - you will need 6.3 pageviews per user to breakeven.

By knowing this data - you know if either you need to optimize your source to get a cheaper traffic, or you need a better performance from users to increase the number of page views, and/or increase CPM rates or a number of units per page.

This doesn't mean that by getting X amount of pageviews you will make tons of money, there's a lot of other stuff that affects revenue, however, this calculation will help to understand possible results, budget and performance you may need. Hope it helps!
 
This link doesn't work any more but the simple formula for those that want to know how to do this is:
=COST_PER_CLICK / CPM * 1000
 
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