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How to Keep Pay-Per-Click Fees Down

Pay-per-click arbitrage could be driving up the cost of your keywords.

This story appears in the January 2007 issue of Entrepreneur. Subscribe »

In business, arbitrage means taking advantage of a pricing imbalance between markets. It's become a popular--and controversial--practice in search engine advertising.

Generally speaking, pay-per-click arbitrage refers to buying clicks at a low price and making a profit by selling clicks at a higher price. For some arbi-trageurs, it's an easy profit. Yet for business owners who are PPC advertisers, arbitrageurs cause click fees to increase.

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