Make Money

Service Arbitrage For Passive Income

Certain services are in great demand these days. With Google’s shift to quality content there is now a need more than there ever was before for high quality writing. It was never a good idea to post those $5 articles on your blog but if you do that now you will not get good results – in fact quite the opposite.

What is Services Arbitrage?

Services arbitrage is a simple concept where you buy a service at a low price and sell it at a higher price. As an example, you may find a good writer that charges $20 an hour. Or they might offer you a word rate of 2.5 cents per word.

When you know this you can then sell their content services at a higher price. A lot of businesses will not think twice about paying $50 for a good blog post so if you can source this at $25 you have made a very good profit.

You ask the customer to pay up front and then you pay the writer. What could be better?

Why the Services Arbitrage opportunity exists

The reason that there is an opportunity in the first place is because freelance service providers are usually very good at what they do but poor at marketing themselves. Then there are the customers who are just looking for a hassle free solution. They don’t want to spend time on freelancing websites finding the right people even if they know about the sites in the first place which a lot won’t.

So here you are the person in the middle that can solve your customer’s problem easily. You know the freelancers (or where to find them) and all you have to do is to capture the job requirements and get the work done. What could be easier?

What are the Opportunities in Services Arbitrage?

There are many opportunities for services arbitrage. We have already mentioned content writing which is a big one. The demand is huge for high quality content as everybody needs it.

Then there is copywriting. This is a real skill that very few people have. The customer wants to have a sales page that will be very persuasive and convert well. You can find good copywriters and do a deal with them and add your margin on top.

Web design is another opportunity. There are many websites out there that need a makeover. There are also lots of new businesses that need a web site designed for them. Finding good web designers is not that difficult and you can easily add your margin.

Graphic design is another in demand service. Companies want new logos or headers for their websites or Facebook pages. There are many good graphic designers out there that will do an excellent job and make you a profit. Some other ideas are:

SEO services

Keyword research

Installing and setting up WordPress

Fixing WordPress problems

Special web coding assignments

Website Security

Video creation

Voiceover tasks

Where do you find these Freelancers?

There are lots of websites where you can find good freelancers. One of the most used sites is Fiverr.com because you can find good people cheaply and easily here. You need to be careful though as not everybody on Fiverr is going to be great.

Then there are forums such as the Warrior Forum. In the “Warriors For Hire” section you can find writers, copywriters, SEO experts, graphic designers and lots more. These people will have a reputation that you can easily check by reading the reviews on their service threads.

Then there are the classic freelancing sites such as Upwork and Freelancer. There are thousands of freelancers on these sites with a variety of skills. You should be able to find anyone that can do anything here.

Where do you find the Customers?

This is where you have to be a little creative and consistent. If you have contacts already then let them know that you are operating a digital services agency and tell them what you can do for them.

LinkedIn is a great social platform for business networking and you can use this to promote your services in a number of ways. Be careful not to overdo it on LinkedIn and provide value first.

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