Three months ago I accidentally stumbled onto a curious way to generate automated residual income working entirely from home with nothing more then a computer and internet access.

At the time I discovered this I thought it was just a neat little way to make a little pocket change. Or maybe earn enough to pay my electric bill or buy a round of beer for me and my buddies at the local sports pub.

Now, three months later, I am seriously considering getting out of internet marketing all together and concentrating entirely on my new found money maker.

OK, let me back up a second and explain exactly what this technique is all about:

I call this technique the Traffic Arbitrage System.

You may have heard the word arbitrage in relation to the securities or currency markets. According to Dictionary.com an arbitrage is "The purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy."

There are arbitrage opportunities in other markets as well.

In fact, any situation where there is a difference in the price of something in two different markets, presents an Arbitrage Opportunity. The arbitrageur simply buys at the lower price and sells at the higher price, insuring a profit.

If you are a customer of my Emergency Cash Generators course (Available from this link ) you are already familiar with the eBay Arbitrage technique. This is very similar except it uses Google Adwords and Adsense to generate a profit.

Here's how Traffic Arbitrage works...

First off, find a keyword that has a lot of search activity. You can use the Overture Keyword Selector tool at http://inventory.overture.com/d/searchinventory/suggestion. I suggest at least 25,000 searches per month for the base keyword.

Next, using the Overture View Bids tool (http://uv.bidtool.overture.com/d/search/tools/bidtool/ enter your keyword to see how much people are willing to pay for clicks generated for your keyword. You want the top bid to be at least 50 cents -- but if you find one in the $1.50 - $5.00 range that is perfect. Beyond $5.00 I have found the competition is pretty intense so it is better to concentrate on keywords in the 50 cents to $5.00 range.

Now, go to an article bank such as http://www.articlecity.com and search for an article related to your niche market keyword. Copy the article (you have permission to use the articles as long as you do not edit them and agree to include the author's resource box at the end of the article.) and create a simple webpage out of it.

Next, sign up for Google Ad Sense at https://www.google.com/adsense/

You can read about Google Adsense at the link above but basically Google will pay you to display Adword ads on your website. You are paid based on the click value of a particular keyword. The actual amount that is paid is a Google secret but I've heard some experts say it is in the 30% -- 60% range.

After your Adsense account is approved put up your webpage. The webpage should have the article in the middle of the page with Google Adsense ads on the top, on the left side and at the bottom of the page. If you don't know how to do this consult the Google Adsense link above for instructions.

Here is an example of one I set up so you can see how everything looks.

http://www.kickbuttideas.com/wheelchair/

Finally, go to Google Adwords at https://adwords.google.com/select/ and set up an account. Then set up an Adword Campaign advertising your niche market webpage. Bid the minimum amount allowed for your relevant keywords and direct the traffic to your webpage.

What you have done is set up a system where you pay very little for a click (10 cents or less) and hopefully get higher paying clicks on the ads from your webpage thus making a profit from the difference.

Some of these niche market webpages pay very little -- a buck or two a day -- and some may not generate any income at all. Others can generate $5.00 or more per day. (my best one generates a net profit of $25.00 per day) It's a numbers game and the more of these little niche markets you tap into the more you can make.

If you're interested in finding out how you can create residual streams of automated income with the Traffic Arbitrage System enter your name and email address below and I'll keep you informed of further developments.

James Jones
Kick Butt Ideas