Recently I've been seeing some success with my arcade websites (such as www.knightarcade.com and www.arcadeforfun.com).

After changing the homepage to look like it has new content automatically, I dramatically increased my return visitors even though the sites content hasn't been updated in over a month. Then again... it does have 3400+ games so I dont see a huge need to update regularly.

I've found a way to send traffic at a sub-adwords price which is great. Back when I started my arcade websites I could actually send people to my site using the Pay Per Click search engine, adwords. I tested and tested my ad to such a point that it was bringing in around 5-6% click through. This is very high. Basically, with google adwords, the higher your clickthrough rate, the lower your bid can be and the higher your position on the sponsored listing. Knowing this information, I could get my bid down to 3 or 4 cents per click which is not much considering I could make up to $1.00 per click from visitors who clicked my ads.

After a while, the market of adwords got flooded and thus bid prices were increased even if it I had a great quality score. Adwords is no longer a profitable network to advertise for at least in this arbitrage. Now I have found a new arbitrage... which essentially internet marketing is about; you send targeted high quality traffic for as cheap a price as possible in hopes of making a profit.

After running a test campaign of 300,000 impressions through this new ad network, I found a very good place to advertise. Obviously I would never post the location or any other information to help keep the prices low.

Here is some information about the campaign:

• Cost: $225 USD
• Impressions: 300,000
• Cost Per 1000 impressions: $0.75
• Click Through Rate: 3.18%
• Total Clicks: 10022
• Cost Per Click: ~0.022 cents
• Total Revenue: $590
• Total Profit: $365

An extra 365 bucks for basically spending 20 minutes negotiating an offer to the advertiser. Now, here is the exciting part: I had to put a daily limit of the traffic received because I didnt want to load my server. This advertiser could actually send me much much more traffic in a shorter period of time. So It's a numbers game. Now I need to order another quad core server and move one of my arcades to it. Once I do this, I will try to send like 5,000,000 impressions.

Now let's dream using previous figures.

• Cost: $3750 USD
• Impressions: 5,000,000
• Cost Per 1000 impressions: $0.75
• Click Through Rate: 3.18%
• Total Clicks: 159,000
• Cost Per Click: ~0.022 cents
• Total Revenue: $9381
• Total Profit: $5803.5

Once I pay down my credit card from advertising costs of this month, I will do it and post the results.

The only risk with this type of marketing is that you're not guaranteed that you'll get the same click through rate or amount of clicks... So I could spend around $4,000 getting a server and marketing traffic and end up making very little or losing money. I love it.

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