In our previous article, we explored what search arbitrage is all about. Now, let's break down the essential steps you need to take to get started. If you haven’t read the previous article yet, we highly recommend checking it out first. Otherwise, you might find some of the details a bit confusing.
Here’s a short reminder: Search Arbitrage, or simply "search," is a method of making money by buying traffic from advertising platforms at a certain price and then selling it to search providers at a higher price (ideally). It’s a smart way to turn a profit, but it requires some know-how and the right tools.
To kick off your search arbitrage journey, you’ll need five key tools. Let’s get into each one in detail.
- Agency accounts
Why go for agency accounts? If you’re in this for the long run, agency accounts are the way to go. While search arbitrage might seem like a straightforward niche, working with large volumes can lead to unexpected bans. High-quality agency accounts provide stability and peace of mind, ensuring you can keep your operations running smoothly.
- Access to a provider
Getting access to a provider isn’t as simple as signing up for a regular affiliate program. Most providers have a rigorous onboarding process, including interviews, financial proofs, and a minimum daily spend requirement on their feeds. If you manage to get access, congratulations! You’ve navigated through a challenging process and are ready to start.
As a reminder, the list of providers was covered in the previous article!
What if you can’t get direct access but still want to give search arbitrage a shot? Consider working through a reseller. A company that already has access to a provider can offer you that access for a percentage of the revenue. The advantage here is that you don’t have to handle the provider directly, and these companies often have the best payout terms.
- Tracker
A tracker is your secret weapon for managing and evaluating your performance. Working without a tracker in search arbitrage is like driving blindfolded.
There are several trackers on the market specifically designed for search arbitrage. Here are a few recommendations:
- Clickflare (+ The Optimizer) (One of the top choices among search mediabuyers, I’ve used it and found it very effective)
- Voluum
- Maximizer (A product from a former co-founder of Tonic)
Some people also use Keitaro and Binom, but be aware that setting up integrations with these can be a bit tricky.
- Creatives
This part is pretty easy: you can either create your own creatives (either manually or with the help of designers) or use spy services. Spy services like Pipiads for TikTok and Adheart for Facebook are well-known. However, you need to know how to find search-specific creatives in these services.
Example of a creative for the Dental Implants niche
Example of a creative for the Caregiver Jobs niche
Whether static images or videos work better depends on the vertical you’re targeting. It’s all about testing. For TikTok, video creatives are definitely the way to go.
- Budgets
This is a crucial point. If your budget is less than a few thousand dollars and you’re not ready to commit to extensive testing, search arbitrage might not be the best fit. This field is not for beginners or solo mediabuyers with a $100 daily budget. In fact, some providers may close your account if you don’t meet the agreed-upon spending requirements.
What you need to know before starting with search arbitrage?
Don’t try to trick the provider:
- No self-clicking: Don’t click on your own ads to boost profits. This is a big no-no;
- No mixing traffic sources: Don’t blend traffic from other sources (like push notifications or UBT) with the feed;
- Don't fall for the trap of using motivated traffic: Everyone knows what motivated traffic is and how it works. Stay away from it;
- No misleading claims: Don’t use misleading statements, false promises, or unrealistic offers. A common example is promising something for free — courses, gadgets, services. It’s not worth it.
What are the risks?
If you engage in any of the above practices, the provider or even Google might refuse to pay you. They might withhold the entire amount for a certain period, part of it, or, in extreme cases, close your account without any payout.
Remember, the standard payment hold for providers is typically net30 or net45, so it’s better to play it safe and keep things clean.
How to test verticals in search on Facebook?
Testing verticals in search arbitrage on Facebook can be challenging, especially for beginners. However, by following a structured approach, you can significantly increase your chances of success. In this section, we’ll cover one effective method for testing search arbitrage verticals on Facebook.
The Importance of structured testing
A well-structured testing approach helps maintain the viability of your campaigns by continuously testing and optimizing new strategies and ideas.
In search arbitrage, testing involves experimenting with different ad creatives, approaches, and messages to find the most profitable combinations. This process is all about figuring out what works and what doesn’t through trial and error. If you skip steps or rush the process, you risk missing out on potentially profitable setups because you didn’t test all possible variations.
Start with research
Before launching anything, it’s crucial to do your research. This means using spy services to understand what competitors are doing, which approaches they are using, and which types of messages resonate with the audience.
Choosing effective approaches
After your research, the next step is to identify a few key approaches to test. For example, if you’re targeting the dental implants niche, your creatives could focus on low prices, specific types of implants, or special promotions. The goal is to test different approaches to see which one yields the best results.
Start with images
Why images? While video creatives can perform well on Facebook, static images have several advantages:
- Ease of creation: You don’t need a video editor, making it easier and faster to create and test different approaches;
- Cost-effective: Image ads are cheaper to produce, allowing you to test more variations without significantly increasing your budget;
- Time and resource efficiency: Although videos can be effective, they require more time and resources.
Starting with images is a smart move for quicker testing and cost savings.
Structure of initial tests
- Number of approaches and images: Start with 3-4 different approaches, each represented by a unique creative. Ensure these approaches are clearly distinct to provide a wide range of testing options;
- Test duration and budget: For Facebook ads, it’s recommended to run tests for 3-4 days with a daily budget of around $10-20, depending on your target geography. This gives Facebook’s algorithm enough time to learn and optimize, helping you identify the most promising setups for scaling.
Audience
You can test different audiences and interests, but this often leads to higher conversion costs and lower reach. For starters, consider using broad targeting, such as Advantage+ or regular broad settings. This approach is usually more cost-effective and tends to yield better results.
Testing variations
In addition to testing creatives and approaches, it’s important to include other variables in your ongoing tests, such as keywords, domains, providers, ad accounts, and bidding strategies. Each of these variables can significantly impact your final results and profitability.
Conclusion
Remember, success in search arbitrage is not a one-time achievement but a continuous process of testing, optimizing, and refining your strategies. Always stay focused, adaptable, and committed to best practices, you can unlock the full potential of search arbitrage and turn it into a profitable venture.
So, don't be afraid to take the first step, and don't be discouraged by setbacks or failures. With persistence, patience, and the right mindset, you can master the art of search arbitrage and reap the rewards that come with it.
