I’ve told this story before, but it’s been a while. After I decided to turn my financial life around, I started managing my personal finances as if I were managing a business. Okay, lots of you know that.
But what most of you probably don’t know is that I took a ton of inspiration from a videogame. Back in 2004 and 2005, I played far too much World of Warcraft. I wasn’t particularly good at it — except one tiny little aspect. I couldn’t kill the ghosts and the ghouls very well, but I was damn good at taking the loot I found — the weapons, the armor, the treasures — and re-selling it at the (in-game) auction house for big bucks.
Although I didn’t know it at the time, I was practicing arbitrage: Getting stuff for cheap, then reselling it at (or above) market value. I made bank doing this. As a result, I was able to buy better (in-game) gear, which let me beat up more monsters, which let me make more (in-game) money. Sounds stupid, I know, but it was truly an important part of my real-life financial journey.
Turns out, this practice — arbitrage — can be highly profitable in real life.
Good Morning America has the story of a 28-year-old accountant who started buying toys from big-name retailers, then reselling them on Amazon for tons of money. At first, he was making $1000/month (for 10 hours of work). But the gig became so lucrative that he quit his day job to do it full time.
Now Ryan Grant says he’s grossing $4 million per year doing this on a larger scale. (And he has a staff of 11 employees!)
Although Good Morning America tries its best to hide Grant’s website, I’ve found it for you: Online Selling Experiment.
The Good Morning America reporter who covered this story tried to experiment with arbitrage herself. She only made $35 for a few hours of her time. The subject of the story (Ryan Grant), however, has found a way to make this work on a massive scale.
As a guy from the box industry, though, there’s one huge red flag in this story. The dude is using U-Haul boxees to ship his goods? Uh, no. That is not a cost-effective way to do this. Either he’s spending way too much on packaging, or something’s fishy here. I’m serious. Every time the video shows those U-Haul boxes, I die inside.