Arbitrage is an easy way to start earning money for yourself. The concept is simple, you buy something at a certain price, and in turn, take what you bought, and sell it to someone else at a marked up rate.
Why is someone willing to pay for the item at the markup you sold it at? And not for the low price you paid for it? Well, there's a few reasons.
1) They don't know where to find it for the cheaper price
2) It will be more inconvenient to find for the cheaper price than to pay you because they are in a hurry
Either way, you as the middle man, reap the benefits for matching the buyer with the seller.
You can do arbitrage with both digital and physical products.
In fact, physical product arbitrage is how I got started in my entrepreneurial ventures.
I started selling things on EBay that I got at garage sales, which at the time was really exciting. In my first month I made $700+ profit!
The method went something like this.
1) Search local garage sales, head there, and search for goods around the garage sale.
2) Search the EBay app for what the goods were selling for on average, to see if they were worth my time.
3) Purchase whatever goods I thought I could sell at a substantial markup for the best price I could.
4) Search the local towns near me's Garage Sale Facebook groups. If you go to the search bar in Facebook and type in, “(Your Town) Garage Sale” you will find them.
5) Met up with people from there to purchase what I could for cheap based on my EBay research, what could be sold at a markup
6) List everything on EBay
What I really hated about the system, though, was storing and shipping merchandise. What a pain in the rear. I hated lugging things to the post office (I live in an apartment so leaving it on the lawn isn't feasible).
Actually, the hate of storing physical goods is what got me into digital product marketing to begin with. Digital goods are unlimited in quantity once you make them, with no physical storage needed 🙂
That brings me to digital product arbitrage. What a beautiful concept. Profit WITHOUT getting your hands on anything but your good old computer or mobile internet device. Of course, when you know about sites like Fiverr, digital arbitrage becomes easy. Here's how:
1) Go to Craigslist and other sites and find ads looking to hire graphic designers or get SEO work done (or similar gigs) willing to spend at least $30 (or whatever profit you are happy with)
2) Find offers on Fiverr for $5 that can fulfill the Craigslist gigs
3) Contact the people on Craigslist letting them know you have access to a team that handles what they need done, and can do the work within their budget.
4) Make sure you contact as many as you can, a percentage will always take you up on your offer.
5) Deliver the gig through Fiverr and PROFIT!
It really doesn't get any easier than this, the only tedious part is having to dig through Craigslist, then head over to Fiverr, dig through there, and so on. It would be so much easier if there was one platform where you could find Craigslist ads for any need and line them up alongside matching Fiverr gigs. How much time would that save and how easy would that make your job?
You'd be able to focus less on the technical stuff and find more potential clients in less time.
Well, there's now a solution to the problem..
Two great marketers, Bill Hugall and Mehdi Tihani, are launching a new software which allows you to do this with easy. I really like this software because it actually finds you gigs on a few sites, not just Craigslist, and finds you matching offers you can use to fulfill from more sites than just Fiverr too. It's also web based meaning you can access it right in your browser on any internet device!
They are actually holding a free webinar tomorrow (Monday, June 1st at 10Am Eastern Standard Time) giving a full demonstration on how exactly it works.
The product will be for sale directly following the Webinar, so if you like what you see, you can make the purchase just as the gates open for the lowest possible price.
Anyways, that's enough for now. Be sure to register for the webinar!