How to make money scalping tickets online

I want to share with you something new that I am trying on a very small scale, and something I know that has a lot of potential for making money — the ticket brokering business. This industry is highly fragmented and there is room for all kinds of participants, big or small.

I will explain the reasons I am trying this out, but by no means do I intend to develop this into a large business — although it could become one option down the road for someone interested in this type of business. I feel this experiment is relevant to share here because it is one that you can participate in during your pockets of availability, and one that takes a relatively small amount of time and investment to get started with. I am a big college basketball fan and have attended the last two Final Four tournaments.

The last tournament was particularly special because my Alma Matter — The University of Michigan Wolverines made it this far. What I wanted to do was invest some of my own capital purchasing event tickets well before the event.

I thought to myself, as the event gets closer and demand builds up, I can sell my tickets in the secondary market for a handsome profit. For me, it is more about being part of the event as well with my friends who enjoy college basketball, and fortunately, I will be in a situation where I can do that.

My trips have always been last minute, literally just days prior to the event. A lot of this has to do with not knowing which teams will be participating or the unpredictability at times of my own schedule. The fact is that most people are likely not in a situation to pre plan well ahead of time as far as events go.

Schedules change, commitments arise, and there is just too much unpredictability for many to risk committing to an event that far out. Having said that, as you can guess I have never paid face value for tickets to such large events that I have attended in the past. There is almost no way you could if you decide to attend the last minute.

This experience has proven true again and again. Here are some of the other larger events I have attended for which I have grossly overpaid:. I am sure I am missing some from this list, but the point is that there is always some type of event that interests someone. You may not be interested in sports, but you may jokingly be a die-hard Justin Bieber fan. This has been true for me for any popular event I remember attending. Some enterprising individuals recognize the possibility that people fans will be scrambling for tickets at the last minute to attend sought after events.

In anticipation of this, they purchase several tickets to the event in advance at face value directly from the original seller. In many cases the original distribution is done through a ticket exchange partner such as Ticket Master.

The opportunity for the entrepreneur is of course the likelihood that people will want to attend the event and thus willing to pay a higher price as the event gets closer and they become more desperate to secure tickets. The value proposition to the consumer is the flexibility to not commit to and plan ahead of time and still be able to attend the event at the last minute if they want and are able to.

There are countless ways to make money, and one of my goals on this blog is to introduce alternatives that can produce extra income for you in your spare time those that do not require full time involvement. Ticket brokering is one such alternative, on a small or big scale, and whether as a one-time transaction or an on-going business initiative.

It is no accident that the rich get richer. A lot of this has to do with the fact that the rich have capital set aside ready to be deployed at profitable opportunities.

Capital leverage is the best and quickest way to magnify financial returns, especially from a tried and tested business model that we know has worked repeatedly in the past. Here are some examples. The examples can go on forever. The point is — it is most always easier and quicker to take money and multiply it rather than to create it from scratch.

When I first started this blog, my goal was to discuss various alternative methods to generate some extra money, which are mostly and traditionally methods that require start-up capital.

But fortunately because of the time we live in today, the internet has made it possible to create income streams from a relatively low capital investment perspective. This caused a shift in my focus. These methods worked back then, still work today and will likely work forever in the future. There is a reason why there is a Starbucks on every corner. Learning to mobilize your excess funds so that you can earn a handsome return on investment higher than the rate of inflation and other alternatives you are comfortable with is just as important in my opinion, if not more important, than learning how to create new passive income streams online.

Because starting a profitable online business may be a far-fetched reality for many for various reasons, but saving part of an active income and investing it is rather the common norm given that most people in this world work for a wage. One of my property managers once told me: It takes money to make money. The message rubbed me the wrong way when I was scrutinizing the rehab invoices he was sending me. He changed the carpet, repainted the whole place, fixtures, caulking, etc.

But when I took a step back to think about it, I realized that the previous tenant was there for six years. The next one will likely be there for another three or more, and the rehab job we did is going to last at least six years.

When the cost is spread out over time, the return on investment significantly outweighs the money I had to shell out. I can lease the unit quicker, attract better tenants, a longer lease and demand more money. The whole thing totally makes sense. Just like we are putting in the hard work now to build a better, strong future, the same can be said about investing. You sow the seed today with your investment dollars to see the growth of your investment down the road.

This was of course years back, however still very vivid in my memory. Another reason to consider initiatives that require investment of cash is that your money will lose value if it sits around doing nothing. The cost of milk today is much higher than what it was 10 years ago. While it is important to balance the return potential to the risk and your comfort level with a particular investment, it is also very important to diversify and have fun when possible.

If you enjoy picking stocks, then pick them. If you enjoy working with real estate property, buy them. I find sporting events and the activities around the events fun as well — and if I can find a way to profit from it, then I will definitely pursue the initiative. It is very important to thoroughly research and understand your competition whenever engaging in a profit generating initiative.

I am aware that the ticket brokering business is dominated by few online giants such as Stub Hub and Fan Snap, but there are countless other specialty online brokerages and smaller players as well.

This is a highly fragmented and very local market. In addition to online avenues, there are also several individuals like myself who are doing this both at local and national levels. Professional ticket brokers travel city to city and State to State depending on the event they are working on. With that said, my goal is not to become one of either. My goal is to carve out my own little niche around specific events I know and am comfortable with, in markets I am very familiar with or want to get familiar with.

In fact, depending on how this particular experiment goes, I might just call it a one-time transaction and never do it again. Time will tell how much I enjoy this process and how financially viable it turns out. If things go especially well and I find myself enjoying the process, I may pursue other one off events like a big boxing match or a highly sought after concert. It is really not much different from a retail company. It takes its profits and reinvests them back into the business. It does this over time until it snowballs into several locations across various markets.

Ticket brokering is no different. I reached out to several family members and friends and requested them to enter the lottery through which each can secure up to 4 tickets to the games at face value. I had several folks enter and I ended up with 22 who were granted tickets. If you are wondering, most events generally have an early bird window within which you can pre order tickets to an event.

This is how you secure tickets at face value. As with any for profit initiative or investment, this has its own set of risks to consider. If brokers are not able to sell all their tickets, they may lose money on the event. Many times they recover their investment and simply break even, but it is not uncommon to lose a lot of money. Full time brokers deal with a lot of unpredictability, uncertainty and chance all the time. Local, political and economic events can also interfere with various events.

This is a calculated initiative that carries its own set of risks similar to any other. And like any other initiative, it is important to study and understand everything related to the business. I know that the stadium itself is an attraction and a place many sports fans want to visit.

I also researched that prior major sporting events in Dallas have always been profitable and turned out record crowds and fan participation. At the same time, I also know that places and activities are more spread out in Dallas unlike Atlanta where the last event was.

Unfortunately, the Dallas metro plex is not quite consolidated. I cannot emphasize enough the importance of doing your homework, especially when high stakes are involved. This is a big trap that even the best fall into, which take them back to reality and remind them that each business initiative stands on its own and should be approached accordingly with adequate due diligence.

This is referred to as business hubris. After going through two Final Four experiences, I realized that I wanted to become financially involved in this event. I almost fell into this trap after my first Final Four. The experience after the second Final Four trip however tipped me over the hump. Few weeks after the event, I set aside several hours each week to study the previous Final Four events.

I researched the venues, participating teams, attendance, local vs. This helped me understand the marketability of the event, or the potential demand that may exist for tickets. I reached out to my network to get connected with several ticket brokers, part time and full time. This was time extremely well spent. It was not only knowledgeable but also fascinating.

Even if I were not to move forward with this initiative, the conversations educated me so much more about the business than I learned on my own. Nothing beats personal experience, thus the value in personal one on one coaching. Many of my thoughts in this article come from my discussions with brokers. A full time ticket brokering business is a much broader discussion, but the points below are some important considerations to take into account if this is a business model you are interested in.

Many of these points can be applied to one time initiatives, as well as a part time ticket brokering business. Many brokers focus on just one team near where they live and do this on the side. You build a network over time of suppliers, customers and allies who can connect you to the customer. For example, if you have a good relationship with a concierge associate at a hotel, they may refer hotel guests looking for event tickets to you.

Similarly, connecting with human resource personnel, corporate marketing departments, secretaries who work for high profile bosses, professionals like lawyers and CPAs who deal with clients all the time helps tremendously. Focus on building a rolodex of connections who will either buy directly or connect you to the buyer.

Treat them well, especially those who are sending you business consistently. Build a rolodex of sources to get tickets from at face value. Many times, the box office will leak them out to their personal contacts.

This is how many brokering sites have tickets to events before the tickets go on public sale. In addition to larger institutional supplier contacts, also maintain a list of individuals like I did that you can reach out to who will buy tickets on your behalf. A single buyer is usually allowed to buy a certain number of tickets during a pre-sale, a lottery system or the day the tickets go on sale at face value.

Incentivize them for their time so they are more inclined to do it the next time around. Identify and record sources from where you can buy. This can be organizations and individuals. Maintain a rolodex of contacts and consider an email newsletter system to manage communications. Identify key events that you know are going to be a hit, especially in your immediate area. The more information you gather, the more successful you are likely to be as you can more accurately estimate demand and potential for profitability.

When you have a hot commodity in possession that everyone wants, selling becomes that much easier. All you need to do is find a platform that makes your commodity visible. For example, if you have an inventory of branded products, you may post them on Amazon or Ebay.

Similarly, avenues exist specifically for entertainment even ticket sales. Stub Hub and Prime Sports are two examples of these. In addition, there are always auction sites like Ebay where you can auction off your tickets. Finally, you have the social platforms involving human interaction. For example, you can strike up a deal with a local hotel who can buy your tickets from you and offer them in a bundle package when they sell their rooms.

You can make contact with a hotel concierge and tell them that you have tickets in case their guests are looking to buy them. Of course you want to offer some incentive like a small finders fee in return. Professionals like lawyers, accountants and financial advisors are always looking to entertain their clients. Build a network of these folks and keep them informed of your inventory.

There are countless other examples of people, places and platforms that you can tap into to expand your reach and sell as much of your inventory as possible. Ideally, you want to unload everything prior to the event so that you can also enjoy the event without the stress of unsold inventory in the back of your mind.

Unlike products which can be sold at another date, tickets to events have a very limited shelf life. All brokerage fees and costs are tax deductible. If you travel for this business, you can deduct travel costs, part of your meals and entertainment, mileage, etc. By doing this, you will lower your effective tax rate and thus increase your overall take home returns. Read this article for more clarity on this topic. You can also incorporate your business if you plan on doing it long term, truly maximizing your tax and legal protection benefits.

The more I researched and the more thought I gave it, the more ticket brokering appeared as a really interesting trade to get involved in. You can definitely earn several thousand and tens of thousands of dollars doing this in your spare time alone, even if you were to focus just on local events.

The key is to establish the necessary relationships over time. Your network will grow over time and word of mouth alone can bring you consistent business. This statement can be true for any business. The other nice thing about this initiative is that many sought after events are held on weekends. If you are a working professional who has weekends off from work, you can use some weekends and holidays to travel to local events which you plan to profit from.

Before I conclude with the tax benefits and upsides, I do want to state that it is important to start on a small scale when you are first trying this out. In addition, it is also important to recognize that you will have your capital tied up until you are able to sell your inventory of tickets.

It is only then that you will realize profits that you can reinvest back into your business. This business is interesting from a legal and regulatory perspective as well. Scalping has a very negative connotation, but the reality is that it happens every day everywhere.

Scalping laws vary broadly from one jurisdiction to another. Some States may have their own laws, whereas cities within those States may have their own. Furthermore, event sites have their own laws. For example, some event sites i. What makes things even messier is the determination of the origin of the seller.

Where were you when you bought the ticket originally, where were you when you sold it, where and how did you physically sell it and execute the transaction, etc. The capability to trade over the internet makes this a very confusing topic from a legal and regulatory perspective. You also brokers who locate themselves at the border of certain jurisdictions so the more favorable laws apply to them.

That said, you will learn the ropes of the trade once you immerse yourself in it. The internet makes all this information very much accessible. When in doubt, call the local police station and ask them about what the laws are in their area. You will learn a lot of this from practical experience as you gain experience and spread your geographical participation over time.

I am amazed at how much I have already learned about the ticket reselling laws and regulations of Dallas and Arlington, TX where the stadium is in just a short period of time. What you will quickly realize is that the laws and regulations are not very clear or granular. They vary broadly, and are applied and enforced differently everywhere.

Lawyers are good at convoluting this matter even more, and this is why we see the gorillas like Stub Hub who have their own corporate lawyers who have managed to get away with all sorts of things in the ticket reselling business.

An individual on the other hand has to be more cognizant of the law and its applicability. The tickets are listed on two major ticket exchange websites.

I have reminders set up on Google Calendar to monitor prices weekly and make adjustments as needed if they have not sold. We are still a bit early so I will leave them untouched for now. I also have a hotel room booked close to event and plan on staying there for accessibility reasons over the weekend festivities. Being there in person helps especially if you plan on selling hard tickets on the day off the event. It also helps if you are selling through platforms like Craigslist.

Many utilize these sites because they are free and involve no cost to sell. While one may hope to sell as many tickets through Craigslist in person transaction to avoid fees, large ticket brokering sites have a much broader reach and are likely quicker to sell the tickets. Buyers also feel more comfortable buying through reputable sites as Craigslist is well known for scams and killings of all sorts. I thoroughly studied ticket pricing and monitored the movement in prices from two weeks out all the way to the hour prior to the games.

On the surface, this is a pretty good return on investment. Of course, I anticipate this number increasing as the event nears and I continue to monitor and modify my listings.

How to Make Money Ticket Scalping Online (Legally!) · The Penny Hoarder

This number will also increase if I decide to sell in person during the event itself. This is exactly what I meant when I stated that money makes money. When you have capital saved up ready to be deployed, all you are then doing is waiting for the next opportunity where you feel comfortable enough to take the plunge and where the returns are enough to satisfy your requirements and risk appetite.

So there you have it, my plan to profit from ticket brokering from the next Final Four weekend. If you are interested in ticket brokering as a business, understand that like any other, this business requires just as much learning.

I thought I could just jump in and make money, but not to my surprise, there is a lot more to learn once you roll up your sleeves and get dirty. Financially speaking, the brokerage business is a longevity game. The longer you do it the bigger your snowball profits and investment capital will grow.

The more capital you invest the more potential return and also risk. Like anything else, TAKING ACTION after gathering the knowledge you need is what will drive results.

This last point is important. And even if none of this interests you at all, if you have cash sitting around, make an effort to learn about other wealth building alternatives and diversify into methods and vehicles you are comfortable with and those you understand.

Utilizing cash to make more cash is the quickest way to make money. This is why the rich get richer. They are able to timely capitalize on opportunities.

Would you ever considering doing something like this? Why or why not? Are you interested in reading about similar ways to make extra money where an investment is necessary, or would you rather read more about purely internet based, free or at best low cost methods to generate extra income such as publishing ebooks, creating iPhone apps, websites and blogs?

Angus, will provide more robust update. Sunil you continue to amaze and surprise me. I have been reading your blog for several months now and I leave wanting more. Do you foresee yourself actively blogging again on a more frequent basis?

You have no idea how much of an impact you have and the difference you are making. Andy — really appreciate the kind words. I do anticipate and will start blogging more prolifically. Thank you for the patience, kind words and supporting this blog. Wow Sunil yet another magic trick pulled off your sleeve.

You have got to be one of the most diverse entrepreneurs I have read online. I enjoy reading about these real world case studies just as much, if not more, than your online projects. I loved the case study on your dry cleaning business. I also love all the real estate articles. Keep up the good writing. I have wondered about diluting my content or keeping it concentrated on just online business.

Sounds like a good way to make money. I have often purchased tickets from scalpers and gotten great seats. You are right scalpers are viewed negatively, usually by those who do not want to pay more for better seats. I make extra income by listing my daily commute and delivering packages to and from work. Thanks Sunil for your comments. I would first like to say that you have a great site and that you obviously work very hard to maintain your quality website.

My hat is off to you. Uber is similar but it seems to me that they lack focus and a clear message. DCshippers is slowly cataloging each city in its available listing database and can be scaled globally. Marketing, at this time, consists of a fledgling involment in social media. Any thoughts on how to ramp up exposure to dcshippers. Never thought about this as a viable investment but it really is. Your research also seems to minimize the risk.

It is always interesting to read about what you are up to Sunil. There a good recent mixergy interview with guy who built huge ticket resale business and let it fall apart. Gives lots of ins and outs about the business model in interview. Very interesting article and I am sure you will do fine with the Final four investment.

I will pay for the better seat every time.. My question to you Sunil is this, How do I create money from scratch…?

Massive Profits from Reselling Tickets: Starting a Ticket Brokerage Business | The Extra Money Blog

I am out of residual resources. When you lose everything, how do you start again. I see these get rich quick schemes once a day and all require an investment which is the scam. Is there a way to create money from scratch or am I asking for the impossible.

JB — you are not asking for the impossible. I really like your article. Your points are well made and relatable. Thanks for writing engaging and interesting material.

The Contents of this site are excellent and very entertaining, makes you want to visit the website often for updates, thank you very much for the contributions made daily. It is always great reading you blog posts. I have been perusing your website for a few months now and I leave needing more. I revel in perusing your blog entries and your online tasks.

You way of thinking and idea of making money is impeccable. By seeing you I have also got much motivation to start some thing new to make money. Many times i feel demotivated and feel their is nothing more which i can do with my blog have your website niche. Then, i visit websites likes your and again start feeling that i have to do something and i start my work one more time.

So, i kindly want to say thanks to you for writing such a beautiful article and keep doing this. Thanks for sharing superb article about massive profits from reselling tickets. Your tips are very useful to start ticket brokerage business.

This is very very useful information for online review readers. Keep it up such a nice posting like this. My wife and I are just getting into the business.. I really enjoy many advantages to it..

What do you think are the biggest risks with going into this particularly type of business? Thank you so much this is seriously useful for me. Thanks for sharing this article. It is great information about this starting a ticket brokerage business. This is the most effective way to learn on how to have massive profits from reselling tickets. Read all the article and you will get a brilliant idea.

I will share this information with my friends and they will certainly love to read this. Thanks for this article about Massive Profits from Reselling Tickets.

Great tips here to learn How to start ticket brokerage business. Ticket brokerage is a great way for fun and make money. Thanks for sharing your thoughts. Thanks for posting this article. It provides a great overview for ticket brokering for those interested in this field.

Wondering if you have posted your results? I always struggle between where to spend my limited time — i. Reader feedback like yours help determine my direction. Today, there are many website available that reselling tickets and make good profit trough it. Tickets reselling is good idea to consider for earning money. Anxiously waiting for your lessons learned on the Final Four investment. Are you going to do it again?

Have you expanded into other events? Will absolutely do it again.

25 unusual ways to make quick money - AOL Finance

In percentage terms the returns were very good. Not sure how much I want to expand into this as I did it mainly as an experiment and to determine whether I like doing it. I do, but I like trying new things better. I also like the nature of remotely being able to work on my online initiatives better.

Tell us what you do or are planning to do? What do you do currently? What do you want to do in the future?

How have the results been so far? In ontario and michigan its prohibited to sell for profit yet there are multimillion dollar companies. How do they do it with store fronts and all. Hi Sunil, Very informative post on Reselling Ticket. These tips very useful for everyone to staring ticket brokerage business and makes lot of money.

I, for one, am more interested in reading about extra income ideas based on online strategies. A few weeks ago, I met Barry Arakelian a minute after he got scammed at a Tom Petty concert. The tickets, however, turned out to be fakes, and Arakelian, who was getting the evil eye from his girlfriend, approached a nearby police officer for help. By that point the scalper was long gone; Arakelian was embarrassed.

I really liked it about reselling tickets business and share more like this one. Keep more writing like this one. Thats some cool technique!! Thank you so very much. But do i need to invest? One more thing is good in this case is that without invest huge money we can start business.

Good Post … thanks!! Have been the in the ticket business for about 6 months! What is the point of this post if you never finish it? A lot of us need some extra money, you made the extra your bread and butter. Something most of us wish to do. Thanks for sharing your insights and knowledge.

Really was thinking this was going to be a great article, but with no ending notes its all just speculation. Ticket brokerage is one of the most profitable business in this modern age.

But it is very painful moment for all. People facing a lot of trouble for this reason. Great article and creative way of starting business. I have a question, does reselling tickets really helps some one? Mail will not be published required. You can use these tags: Notify me of followup comments via e-mail. Sign up for new content notifications! The Extra Money Blog Home About Contact. My Income Proof Resources I Use Services I Offer Resource Reviews New Here?

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