Can you make money by purchasing adwords?

In the early days of Adsense/Adwords some webmasters figured out that you could buy cheap Adwords to drive traffic to your site so that the traffic would click on their expensive adwords.  This practice is commonly called arbitrage.  The word fits, arbitrage means to take advantage of the difference in price on nearly identical items in different markets.  The markets are adsense/adwords, the items here are the adwords that are bought and sold.

To do this you would have to research high paying keywords (finance, medical) and create a site that has *some* useful information about that.  The idea being that you want those to be the ads that appear on your site while providing useless information to the user creating a desire in the user to click your ads.  Then comes the harder part, you would need to setup your adwords campaign.

For this you need to find keywords that are similar to the ones you are targeting with your adsense site, but are much cheaper.  It has to be similar because your target audience needs to be already interested in what the ads on your site will display.  They need to be cheaper because you will only earn a fraction of the money that is paid for the clicks on your site (while you pay for the entire click on the adword you buy) and you need to make a profit.

There are many stories of people on the web spending thousands of dollars on adwords to make substantially more than they spent with adsense.  For a while this worked, but Google being a company that likes profit shut this down.  They’ve adjusted their algorithms now to the point where making money using arbitrage is very difficult.  You can try it but very few people succeed at it.  And if you get shut down one month you’ll be left with paying for your adwords bill with no adsense income.

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