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.
Author: J.D. Roth
In 2006, J.D. founded Get Rich Slowly to document his quest to get out of debt. Over time, he learned how to save and how to invest. Today, he's managed to reach early retirement! He wants to help you master your money — and your life. No scams. No gimmicks. Just smart money advice to help you reach your goals.