If you have ever done any elementary course in finance, then you would probably know what arbitrage theory is.

Arbitrage as it is known in finance is when there is a price discrepancy for the same stock listed in two different stock exchange markets. Thereby giving an arbitrageur the chance to make risk-less profits by continuously buying the stock where it is cheaper, and selling it where it is expensive.

Now, if you have ever done elementary finance, you would also know that because of immense competition, this type of situation is very rare to fine in our almost efficient markets of today. In fact in finance, it is always assumed that there are no arbitrage opportunities. Even when these opportunities do present themselves, the effects are minimal because the markets quickly adjust and automatically fix the problem. It may even take less than 5 minutes for an arbitrage situation to be automatically fixed, and wipe out any price discrepancy in the listed stocks.

People have been trying to apply the internet marketing version of the arbitrage theory but slightly different though. They claim that they can use Google AdWords to buy cheap traffic, and then send visitors to a landing page with expensive AdSense adverts hoping that the visitor would click on the AdSense ads. The difference they make form what they spend on buying Google traffic and what they get from Google as a results of clicks on their AdSense ads is considered as their profits.

This sounds kind of wired to me and quite impossible to achieve. Even if you make money from the start, it is quite less likely that you can continuously be making money using this method. I am challenging anyone who says he used this method and continuously made profits for over a period 2 week.

If you are just starting out with internet marketing, don’t get caught up with the hype that surrounds this whole arbitrage theory thing and loose sight of some real internet opportunities that you can, and should be targeting, so as to make money on the internet.

Arbitrage is simply not possible in finance, and it is not possible in internet marketing.

At times it seems that Google releases more new products and services than we can keep track of. From Google Calendar and Google Video, to Google Base, Google Finance, and Google Trends, it can be overwhelming just to remember what each one does. One of the oft overlooked hidden gems in Google’s enormous offering is Google Alerts. Within minutes, one can be signed up for email alerts that can give them and their business a leg up on the competition. Alerts can be used to spy on competitors, keep track of what people are saying about your business, or follow an important news story.

How Does It Work

Google Alerts sends you an email each time a new page for your chosen term makes it in the top twenty results on Google’s web search. You can also have the alert check Google News and/or Google Groups. To sign up for a Google Alert, all that you need to do is visit the Google Alerts homepage (http://www.google.com/alerts), enter the search term, type of alert (search Google News, Google Groups, or the web), frequency of emails (daily, as it happens, or weekly), and your email address. You can set up alerts for as many terms as you like using a Google Account. So why would you want an unlimited amount of alerts? Because as a business owner, you have a lot to keep track of and very limited time to do it.

Spy on Your Competitors

Every business has a competitor. More likely, you have several direct competitors and several more indirect competitors. While regularly checking out their websites is an important part of the process, it doesn’t paint the whole picture. A competitor’s website is very much crafted to the image that they want to portray to their customers. This is great if you want to know what their latest sale is or how much their new product costs, but it isn’t likely to feature a negative review in last Sunday’s newspaper.

That’s where Google Alerts comes in. By simply setting up a News, Groups, and search alert for each of your competitors, you will know what other people are saying about your competition – both the media and consumers, both good and bad.

Keep Up To Date on Your Industry

Equally as important as what people are saying about your competition is what people are saying about your industry in general. If there’s a negative PR swing against violent video games, and you just happen to run a video game store, you will probably be affected. By receiving alerts on important key words related to your industry, you can be on top of any sudden changes and react accordingly. By the time your competition realizes what’s happening they will be scrambling to catch up to you.

Track Yourself and Your Business

It goes without saying, if it’s important to know what people are saying about your competitors and about your industry, it would stand to reason that it’s important to know what people are saying about you. I have Google Alerts on both my name and my businesses name. I know that they go hand in hand – if one is getting slandered you better bet it will hurt the other. By receiving alerts, you can be on top of anything negative relating to you or your business, and hopefully nip any problem in the bud before it grows too large. On the flip side, there’s nothing better than receiving an alert where someone praises your business. Those are the types of things that you want to make sure are on the PR page of your businesses website.

Get News Stories for Your Site or Blog

I own a site where I do weekly news updates about what’s going on in the industry. Some weeks, there are tons of news items to choose from, other weeks it’s hard to find anything. In addition to the regular industry news sites that I check to get information, I have Google Alerts set up for each of the key terms. You’d be surprised how frequently a unique story from a local newspaper pops up in Google News. Many times these stories haven’t been seen by my competitors and I am able to “break” the news to the online community. This works well for blogs too – if you have a daily blog about being an entrepreneur, having an alert for the word “entrepreneur” can fetch you several quality stories each day to help inspire fresh posts.

In this increasingly competitive business world, you need each and every leg up on your competition that you can get. Used properly, Google Alerts can be an extremely efficient way to track what’s going on across the web. The alternative would be to search each term every day for new updates. Who has time for that? Spending less time researching enables you to spend more time on the things important to your business.

I have been trying to find out more about making money on the internet as a result of a little google ad that popped up next to one of my articles.

Since then, I have been sucked into the world of internet marketing and while I’ve learnt a lot, I can’t say I’ve really enjoyed myself. I like writing for the sake of writing and to have to keep adjusting my point of view to slant it a little towards a product I was trying to promote just took the fun out of the writing.

Not to mention having to think about these important things called keywords so google would find me. It drove me nuts trying to remember to mention a keyword, and not make the whole article sound like I was trying to mention the keyword.

But I ramble on. Actually, what happened was, I tried to create a blog on personal finance. I figured that maybe if my content was about money, maybe people would put all sorts of nice google ads about money on the site, and I could promote the internet products helping people to get rich.

I have since realised my flawed logic.

1. Money is an interesting topic. Personal finance is not. I was half-way through my blog when I learnt about this thing called doing keyword research and the number of people who actually search for blogs under personal finance are a tiny fraction of people who search for money blogs, of which there must be millions of them, mostly trying to sell something or other.

2. I don’t believe in the stuff I was supposed to be selling. I don’t believe in get rich quick schemes. But try advertising a product that tells people they can get rich slowly but surely, and in the most boring way, by saving, researching, investing etc and see how many clicks you get !

3. I changed my name of the blog from Why Money Matters – A blog on Personal Finance to Grow Rich Along With Me – The Best Is Yet To Be, and google found me ! Under “get rich blog”, google has decided I can come on its first page. Of course, once people come and visit and find out it isn’t something quick, they leave soon after. Oh well.

4. I failed a number of blogs created for the purpose of trying to make money. Actually, el cheapo me used blogger for most of them so google reviewed me and almost took one of my blogs off. Paid for another one but have since returned that !

5. My lack of savvy as a marketer became clear when I tried to sell Think And Grow Rich by Napolean Hill through Amazon.com, only to find after a few posts on it, someone else was advertising to give away a free version in the google ads next to my advertisement to sell the book !

Oh well. Have since become addicted to flooding cyberspace with blogs just for the fun of seeing them published. Have also littered the same cyberspace with articles meant to help promote my blog, but have found people read the articles, but don’t visit the blog ! Have also started a new blog on my internet marketing experience, separate from my personal finance blog, which is slowly gaining some regular readership.