Best Business Models For Newbies ???

What Exactly Is Services Arbitrage?

To put it simply, to arbitrage in the context of this business model means to make money as a middle-person in a transaction delivering a service.

For Example there was once a business platform (Wad Sold Later On) to connect students with editors, who edited thesis and essay papers. The business owner hired contractor editors to deliver the services and market the website to attract clients. The Owner made a profit by charging the students more money for editing than the contractors charged Him for the work.

There are countless other examples today of Service Arbitrage businesses, offering services like transcriptions, podcast editing, video creation, content writing, copywriting, legal services, graphic design, audio production and many others.

There are also some very big companies that use the Services Arbitrage model, for example, Uber, which is a multi-billion dollar company. Uber offers transportation services and hires contract drivers to deliver the service. They charge the client a fee, take a percentage as their revenue and then pay the driver the remaining money.

Service Arbitrage Is A Business That Grows Without Your Work Load Growing With It. When You Pay close attention to people who own their own businesses such as freelance web designers, Google AdWords agents and other people with real-world businesses like restaurants, retail stores and internet cafes etc., You Realize that "The more money they made, the harder they worked".

I Personally don’t mind hard work, but this just FEELS wrong because the WHOLE POINT of Me Working Hard was to Enjoy My Life After Making It BIG, instead of Getting STUCK in the SAME "Rat Race" where Everything Remains SAME Except for the STAKES which Keep on Getting HIGHER As My Business Grows BIGGER.

Business growth in Most Models correlates with an increase in the amount of work the owner has to do. Yes, it’s great to get a new client adding more revenue, but that also means more labor to meet the needs of that client. Eventually you reach a ceiling of how much money you make simply because you lack capacity, although you are exhausted long before you reach that point.

After reading the story behind the creation of eBay, most upcoming Entrepreneurs decided to build a business around a better business model.

The model they follow is the same used by eBay and many other companies, including Google and Facebook and is called a Many-To-Many Business (M2M) Model.

What Is The Many-To-Many Business Model?

The Many-To-Many model is very simple. You have many customers and many suppliers and You link them together as a middle platform.
For example –
• EBay’s auction technology is the platform that allows many people with products to sell to reach many people who want to buy those products.

• AirBNB’s reservation technology is the platform where many people who want to rent out their property can connect with many people who want to rent places all over the world.

• Kickstarter’s crowdfunding technology is the platform where many people who want to raise funds for their projects, connect with people who want to back and buy interesting ideas.

• And perhaps the best many-to-many idea ever built, Google’s search engine technology is the platform where many people who are searching for information can reach many people who publish this information.

In most of these models, the platform provider takes a fee from the transaction they help facilitate. Ebay, AirBNB and Kickstarter all do this and make billions from it.
Google’s search engine does it too, but in a slightly disconnected way. They offer an advertising service (Google AdWords) and charge a fee to the many advertisers who want to pay to reach the many people searching.

Google’s AdSense for publishers system is another good example. Google takes their network of ad buyers and connects them with web publishers who want to make money by placing ads on their website. Both parties (advertisers and website owners) use Google’s ad delivery platform, and Google takes a cut from every click on an ad by a website visitor.

M2M a simple concept, but incredibly lucrative when you tap into large markets online, especially when you are the market leader.
This idea of connecting two groups together and taking a slice of a transaction, is at the heart of the Services Arbitrage idea.

How To Profit From Day One

Most of the huge start-up companies that tap into a Many-To-Many structure do not make money for years while they built up enough critical mass (audience size/userbase).

For Entrepreneurs looking for Quick and Immediate Income Streams, "Selling Services" is An Awesome Option. There is no technology required and they could make Money/Profit from the point they got their first customer.

It is the best of both worlds –

The potential to scale the business without having to increase Labor/Manpower with each new client (because the Service Contractor/Provider delivers the service, not the Middleman)
Profit is made from the first sale onwards

Because of the simple and purely online structure, overheads are extremely low. The initial costs only include Domain Name and Hosting. The rest is up to the Entrepreneur to find customers and Promote his Offers.

You Don’t Have To Be An Expert

Service Arbitrage Model is particularly Good For Newbie Entrepreneurs who lack experience, are not confident in their face-to-face sales ability and are Certainly NOT in a position to offer Coaching, or Sell Courses or any kind of teaching product.

In Services Arbitrage One doesn't need to worry about creating some kind of software or technology platform All by Himself and nor does he have to meet his Clients in Person. They Could just use the words they type from the safety of their computer to create a business.

They are still selling expertise — just not my own.

They can just hire contractors who deliver expert-level services and leverage their expertise in their online marketing materials. They just need to know how to get a website online and How to use the internet to find prospective and High-converting customers. They also promote their Service Contractors/Providers as Experts at their Respective Fields.

Does This Business Model Appeal To You?

If what I have written here resonates with you on any level, and you’re still hunting for your first full-time online income stream, then Services Arbitrage may be perfect for you.

You don’t have to be an expert, nor do you need tech skills. Provided you can communicate through typing and build a basic website, and you’re willing to spend time locating good contractors and marketing your services, this is an incredible opportunity for you create a Truly Online Passive Income stream.

The opportunity right now is huge. There are so many different types of services you can offer online that are in high demand, for example:

• Copywriting
• Video Editing
• Podcast Setup
• Graphic Design
• Transcription
• Programming
• Personal Assistants
• Research
• Blog Content Writing
• Editing & Proofreading
• Social Media Marketing
• Advertising Management
• Split Testing
• Analytics Tracking
• Desktop Publishing
• Recruitment
• Bookkeeping
• Legal Services
• Customer Service
• App Development
• and so on and on.

Any service other people or companies need can become the basis of your successful Services Arbitrage business, if you are just willing to do the work to find customers and hire contractors.