This is how PPC arbitrage works: you buy clicks at a low cost for one of your webpages, a visitor clicks on the link and go to a page with good content but also has an XML or search engine listings in text feed. The source of the search engine feeds is most often from second-tier search engines. When visitors click on one or more of the listings here, you get paid for the clicks. Fairly simple, isn't it?

Of course, if arbitrage is to work to your advantage, you have to make certain that the feed links being clicked are paying you more than the clicks you buy.

You might be asking if it is even possible to buy clicks for just a few cents each and make up to 40 or 50 cents every time a visitor clicks on a link on your webpage. The answer is yes, it is very possible. You just need to find the second-tier PPC search engines that make it possible.

What are second-tier PPC search engines? Everyone knows about the big search engines like Google, MSN and Yahoo. But there is a level below them and these are the second-tier. There are quite a few of them including Enhance, Search123, Miva and GoClick. On these search engines, you will be able to buy clicks for a few cents each.

There are also some search engine companies that website owners can get feeds from. A few of these companies are RevenuePilot, 7Search, SearchFeed and SearchAnyway. You get a percentage of any revenue earned from visitors clicking on a link in one of these feeds. It can be a very nice percentage in the neighborhood of 50% to 65%.

To find the best keywords for using pay per click arbitrage, check out the markets that are the most competitive. You will find that your best bet for success with PPC arbitrage can be found in such niches as pharmaceuticals, insurance, online gambling and education.

Take a look at a few of the second-tier search engines and see for yourself that you can buy clicks from 5 to 15 cents per click. The search feeds for these same companies will usually pay 50 to 75 cents per click and, for some of the most competitive keywords, sometimes more that a dollar per click.

To get started with you arbitrage campaign, you need to install a special script on your site known as an XML parser. What this script does is read the information of each visitor, such as the visitor's IP address and then draws just the right information from the feed and shows it on your web page.

Scripts like this are not easy to find but you can find a few that are commercially available for a decent price. Of course, you also have the option of hiring someone through a freelance site like Rentacoder or Elance to write a script for you. A good PHP coder can easily write the XML parser you need at a price you can easily afford.

Pay per click arbitrage is something you will definitely want to look into because this area of internet marketing is open wide and very profitable.