The basic of arbitrage is to take advantage of price differential between two or more markets. With a combination of matching deals are struck that allows arbitrageurs to capitalize upon the imbalance and gain profit from the difference between the market prices.

The same concept can be applied to Google AdSense publishers. For Google AdSense arbitrage publishers, they would use Google AdWords and other means to send traffic to their site, and at the same monetize that traffic with Google AdSense.

For example, if arbitrageurs paid $0.10 per click on AdWords and made $0.15 per click with AdSense, then at the end of the day, they still make $0.05 of profit. Simple concept.

However, recently numerous AdSense publishers have been receiving emails from Google stating that their use of their AdSense account is an unsuitable business model. Starting June 1st, this individual’s account as well as many many others will be terminated. They will however received all outstanding earnings that are due to them. These publishers are given about two weeks notice to prepare for the loss of the AdSense accounts.

This is very hot thread at most of the SEO forum: Topical threads at Webmasterworld and DigitalPoint Forums.

For more information:

• Google AdSense disabling arbitrage publisher accounts as of June 1st
• Adsense Arbitrage - Just the facts. (Video by ShoeMoney)
• Search Arbitrage: Web Blight Or Brilliant Marketing Strategy?