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Twitter Arbitrage : who has tried it?

Discussion in 'Social Networking Sites' started by speakout, Oct 30, 2009.

  1. speakout

    speakout Registered Member

    Jun 20, 2008
    Likes Received:
    you are the smartest cats on the web so tell me.

    I heard about Adsense arbitrage before, but what brought that opportunity to a sudden halt? Or is it still going?

    t the Revenue Bootcamp conference on Friday our panel was asked how we would monetize Twitter. I took the lead on this one and talked about how I was already monetizing Twitter? but just for my own benefit.

    I also went on and talked about how there is a HUGE market imbalance going on right now with Twitter traffic.

    I started doing sponsored tweets about a year ago when I was offered $50 a tweet and recently as much as $400 a tweet.

    But the opportunity really lies in arbitraging Twitter traffic. There are about a dozen Twitter advertising networks out there. Traffic can be purchased anywhere from .5 cents to .15 per tweet.

    I will show you my first examples playing around with arbitraging Twitter traffic.

    A couple months ago while browsing the Social Spark opportunities I noticed they had added CPC deals. This means you get paid per click that you send to them. They also have a special link you can use for social network traffic like Twitter and Facebook.

    Social Spark is buying Twitter traffic for this offer at .24 cents per click.

    I shot the owner of RevTwt an email asking what would be a good price per click to ensure that I got a lot of clicks to do a test with and he told me anything above .10 cents should be good, so I went with .14 per click to get some interest.

    So I made my ad:

    and did a $200, 5 day test to see what we were working with.

    You can see all the sponsored tweets by searching for ?blu frog #spon? on Twitter search.

    Now keep in mind I honestly was not worried about making money but rather wanted to do a test to see what average CPC could be earned. I was more concerned about getting enough volume to do a proper test.

    When the test was complete, the results were very encouraging.

    The RevTwt showed over the 5 day period I received 1166 clicks costing me $174.90

    blu frog

    Social Spark showed I had made $127.20 on 530 clicks:

    As you can see there is a HUGE discrepancy in clicks? over 2x.

    Social Spark massively (putting it lightly) scrubs the clicks using a 3rd party fraud detection software called Click Forensics and they are SUPER SUPER scrubalicious when it comes to validating clicks from fraudulent ones.

    So while this campaign lost 50 bucks it really got my fire going because consider this? I choose a CPC way too high at .14 cents and I choose one of the lowest paying CPC offers, blu frog, at .24 cents and yet was still in the game.

    Since that first experience I have been paying .05 to .09 cents per click from various Twitter ad networks and sending it to much higher paying offers like Blockbuster, Disney, and Seaworld which pay in the 70-80 cent range per click from Twitter PLUS you can negotiate a much higher rate once you show them you can create some volume. Now after dialing it in a bit we are seeing 4-6x on our ROI. Not bad.

    So why am I sharing this gem with you and not soaking it all in?

    The problem is there is just not enough advertisers to make this worth our time. We can make $300-$500 a day in profit on Twitter and I know that for a lot of you guys out there trying to make something happen that is all you need. For us we need to move the needle a little more to really devote resources to it.

    I honestly believe NONE of these Twitter advertising networks are doing it correctly and the first one that does is going to crush it!

    There are really 2 types of Twitter ad networks right now.

    1 ? Going after spammers/bottom feeders.

    2 ? Going after celebrities or ONLY high follow count accounts.

    The first Twitter ad network that works will be the one that appeals to everyone and does not take more then 5% of the cut.

    Its such an opportunity that if I was not tied up with a non compete from our Auction Ads I would start a Twitter Advertising network in a minute. C?est La Vie.

    Please before doing this method make sure you have permission from IZEA as I did.
  2. thefish2010

    thefish2010 BANNED BANNED

    Jun 25, 2009
    Likes Received:
    Social spark died months ago. They're technically still there, but all of the cpc opporunities are pretty much gone..one day there were like 50 offers and the next day there were like 5, and they haven't added any since.
  3. speakout

    speakout Registered Member

    Jun 20, 2008
    Likes Received:
    I am thinking, with all this money going to sponsored tweets, how much money is in sponsored facebook updates?