buzz about MFA and arbitrage

[marigot]

I have been watching closely the recent termination of many google accounts due to sites being MFA and site owners using arbitrage. According to the other forums and people who are experiencing the problem, G has decided that their business model is no longer acceptable.

While I am all for booting out the serious MFA sites (those that provide ZERO content and only mislead the searchers and users), I am curious about the arbitrage issue.

For those that do not know what arbitrage is - a basic definition would be -
Buying advertising at a low price and receiving click through revenue at a higher price. The differential on the same click is your profit.

What I cannot understand about this is a couple things:

1. in theory, why would this be a bad business model?
2. how does it hurt the advertisers or G if the content is valid and targetted?
3. what exactly does that mean - sites cannot advertise with other search engines using the same model?

I myself, have not been affected. I could never master the technique - I only lost my money - LOL.

[biohammer]

Im just starting and I am using a $250 google adword credit to test it out but you do get clicks so if you have a good product and a sticky site it could work. But i would be losing money if not for the credit

[christy]

My own opinion is they just cleaned house. I mean most of those MFA sites that are using arbritage have nothing of value to provide anyone. How can you make money from providing nothing.

Maybe they finally said, these are not producing quality traffic, their sites do not comply with the terms of our agreement and so they must be terminated.

If there is nothing on their site to begin with, how can they send traffic to the advertisers that would convert. I do not see those MFA sites as legitmate sources for anything.