The other day I was doing a bit of arbitrage which involved driving traffic I bought with Adwords onto a landing page selling a particular product. This can be quite tricky but if you get your maths + niche right, you can make some nice cash. So I targeted a bunch of related sites running Adsense. Paid for a bunch of clicks and sold a few products. I have made a little profit so I was happy. Now why would not the websites I advertised on cut out the middle man (Google) and sell the products themselves, directly?
Have you ever thought about this? Why do people advertise with Adwords? Why do they pay you 50c for every click? Or even $5/click! (Considering that Google also keep certain % of the money) How can they afford to do this? Its quite simple really. They are able to generate more money from that visitor than 50c. These companies either sell their own service/product or simply do what I do and redirect people to their affiliates page. So why would you want to your incredibly profitable visitor to go somewhere else for a few cents even though you could have converted them yourself?
Have a look at your Adsense ads. (Don’t click on them. Manually enter the urls) What are these companies selling? Try and see if you can sell their product/service directly to your visitors via an affiliate program. I myself need to sit down and come up with something for this blog when I get a bit of time off from my main projects.