Service Arbitrage

Service Arbitrage For Passive Income

For marketers, the old internet adage of making money while you sleep is often considered the province of create it and forget it digital products. Service arbitrage is not the first thing that comes to mind. Indeed, many marketers have never heard of service arbitrage and have certainly not considered it as a business model.

In reality, earning a passive income is simply building a service or business that, over time, can essentially run itself. The most obvious example is training employees to handle the work, while you move on to occasional input or strategy recommendations.

This can happen in the world of internet marketing just as easily as in a brick and mortar environment. That’s because Service Arbitrage is fancy way of describing a working relationship with a talented freelancer workforce. Service Arbitrage

The word ‘arbitrage’ essentially means ‘trade’ and profiting from price fluctuations in the marketplace. You buy a stock at a low price and sell it for higher price at some point in the future.

With Service Arbitrage you become a broker, buying the services of a freelancer and selling those services at a higher price.

If you can find a business that is willing to pay $1,000 for designing a website and you can find a freelancer who is willing to complete the job for $500, then you are profiting from Service Arbitrage. Additionally, while you are brokering these services, there is no requirement to reveal the actual source of the work. Even explaining that you are a broker is not required, but it would be good business to do so and it would enhance your credibility.

Cyberspace offers a plethora of opportunities for Service Arbitrage. Blog posts, promotional videos, podcasts, social media commenting, sales funnel development, etc. The list is considerable.

Finding the clients and finding the freelancers is the challenge. But there are a few ways to begin.

White Label Services can provide a good start. These are companies that specialize in producing products or services and then re-branding the results for other companies so that they can claim the fruition as their own. Pricing is relatively low for White Label Services and you can take advantage of this when offering your services to a prospective customer.

Additionally, you can find talented freelancers on sites like Freelancer or Upwork. Again, your task is to work the pricing to your benefit.

For the other side of the ledger, it’s recommended that you build a website to offer your services. Everything else from there is not unlike building a traditional online business. If you already have a list from some of your other internet marketing offers, then you can be sure that some of these folks will likely be interested in having some online tasks handled for them by talented professionals.

Like everything else that can be profitable in internet marketing, Service Arbitrage is not an overnight get rich scheme. Work is required and particularly in the beginning. Still, if you can set the wheels in motion then the likelihood of profitable deals and working relationships can result in a profitable business with just a few emails or phone calls a day.

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