Relying solely on Google for traffic is a risky game. One day, you’re enjoying a steady stream of visitors, and the next day, a sudden change in Google’s algorithm could send your traffic — and sales — off a cliff.
Alex Goldberg learned this firsthand. He initially relied on SEO and saw great success. But as his websites grew, he became too dependent on Google. To avoid risk, he started using paid ads on platforms like Google and Facebook. This helped him drive traffic and reduce his reliance on search engines.
Alex Goldberg
The result? In early 2024, Alex sold his portfolio of websites for a seven-figure sum. Paid advertising played a crucial role in making his business attractive to buyers and achieving this impressive exit.
In this article, we're going to share his journey and find out why he chose to build a whole portfolio of websites rather than just focusing on one. We'll explore the challenges he faced juggling multiple sites and how he overcame them. You'll learn about the pivotal moment when he decided to shift his focus to paid traffic, and the reasons behind that decision. Plus, he'll share his simple yet powerful approach to paid advertising that's both simple and effective.
Alex's story
Alex has always been driven by the desire to build his own business. He developed his marketing skills in college and through various roles at tech startups, gaining experience in both online and offline marketing, paid and organic strategies, and even international expansion.
After several years in the startup world, Alex joined a larger tech company called Houzz, where he managed a massive advertising budget. It was during this time that he realized he was ready to take the leap and build his own company.
Fin vs Fin
Alex's first successful affiliate website, Fin vs Fin, helped shoppers compare health and wellness products.
He launched it in 2018, focusing on SEO to attract organic traffic. The website took off, and in 2021, Alex quit his job to focus on it full-time.
Paid media arbitrage
As someone with experience in both SEO and paid media, Alex offers a balanced perspective on the pros and cons of paid media arbitrage – the practice of buying traffic from platforms like Google and Facebook and monetizing it through affiliate marketing.
SEO vs. Paid Media
While SEO traffic can be cheaper (though not truly free), it's also incredibly vulnerable to Google's algorithm updates. One wrong move by Google can decimate your traffic overnight, and recovery can be a long and painful process.
These days, succeeding with SEO requires more than just writing great content. You need to build a social media following, engage your audience through email, and potentially even create podcasts or videos. It's a constant battle to stay relevant and keep your content fresh across all platforms.
Paid media, on the other hand, offers a more straightforward approach. Launching a campaign typically requires just a landing page and some ad copy. You don't need to constantly chase the latest trends or worry about algorithm updates. In this sense, paid media can be more stable and easier to manage than SEO.
The advantages of paid ads
With paid media, you have far more control over your traffic. You can turn it on and off at will, target specific geographic locations, and test different ad copy with ease. This level of control is simply not possible with SEO.
Furthermore, paid advertising aligns your incentives with those of the platforms you're using. Google and Facebook are businesses, and their primary goal is to serve advertisers – not publishers. By paying for traffic, you're essentially becoming a valued customer, which can lead to a more stable and predictable relationship in the long run.
The downside of paid media
Of course, paid media also comes with its own set of challenges. The biggest downside is the risk of losing money. Unlike SEO, where your primary investment is time, paid media requires you to put your hard-earned cash on the line. If your campaigns aren't profitable, you can quickly lose money.
Alex's decision to sell
After four years of building and growing his website portfolio, Alex felt ready for a new challenge. While his businesses were generating over $1 million in annual revenue, he realized that scaling to $10 million would require a significant investment of time and effort.
Faced with rising interest rates and a slowing economy, Alex decided to explore selling his portfolio. He engaged Quiet Light, a reputable online business broker, to help him navigate the process.
Sale during a Google algorithm update
Despite the challenges posed by a recent Google algorithm update (the Helpful Content Update or HCU) that significantly impacted his organic traffic, Alex was able to successfully sell his portfolio. His diversified income streams, including the steady revenue generated from paid media, made his businesses attractive to buyers.
In March 2024, the deal closed for approximately three times his annual earnings. Alex credits his strategic shift to paid media as a key factor in securing a successful exit, especially given the negative impact of the HCU.
Paid media affiliates course
Drawing on his years of experience in successfully using paid media for affiliate marketing, Alex has launched an in-depth course called "Paid Media Affiliates." This course is designed to help website owners diversify their traffic sources, reduce their reliance on SEO, and build more resilient online businesses.
The course covers a wide range of topics, including:
- Forecasting profitability before launching paid campaigns;
- Identifying lucrative keywords in your niche;
- Building high-converting landing pages and ad creatives;
- Implementing offline conversion tracking for advanced bidding strategies;
- Scaling your budget methodically to maximize profits.
Whether you're a seasoned media buyer or a complete beginner, Alex's course provides valuable insights and practical strategies to help you succeed with paid media affiliate marketing.
Which niches are best for paid media arbitrage?
While paid media arbitrage can work in a variety of niches, some are naturally more profitable than others. Here are some characteristics that tend to indicate a good fit for this approach:
- Considered purchases: Products or services that require shoppers to do research before buying (e.g., insurance, financial products, software) offer more opportunities to provide valuable information and comparisons, leading to higher conversion rates.
- High margins or LTV: Niches with high profit margins or high customer lifetime value (LTV) allow you to spend more on advertising while still remaining profitable. This is especially important when competing with established brands.
- Limited competition: Niches with only a handful of major players tend to be less competitive and easier to break into, especially for newer websites.
Avoiding restrictions
It's important to be aware that Google and other platforms have specific policies and restrictions in place for certain sensitive niches, such as prescription medications, CBD products, and cryptocurrencies. These restrictions can limit the keywords you can bid on, the language you can use in your ads, and even the content you can include on your landing page.
While it's often possible to work around these restrictions, they can significantly reduce the potential for profitability in these niches.
Essential skills for success in paid media arbitrage
To succeed with paid media arbitrage, you'll need to develop two key skills:
- Partnership development: This involves building relationships with brands and persuading them to allow you to run paid traffic to their offers. You'll need to learn how to overcome common objections and demonstrate the value you can bring as a partner.
- Funnel optimization: This is the art and science of creating a seamless user experience that leads to conversions. It involves understanding user intent, crafting compelling ad copy, designing high-converting landing pages, and continuously testing and refining your funnel to remove friction and lower your cost per acquisition (CPA).
Note: These skills are also crucial for success with SEO-driven affiliate marketing.
Developing your skills: Resources and tools
While you can outsource tasks like landing page creation and ad copywriting to freelancers or AI tools like ChatGPT, it's important to develop a deep understanding of funnel optimization principles to effectively analyze results and make data-driven improvements.
Conclusion
Don't wait for the next algorithm update to catch you off guard. Start diversifying your traffic sources today and secure your future in the digital landscape. Your business deserves the stability and growth that paid media can provide.
