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Make Big Profits- How to Buy and Sell Music Cd’s for Big Profits (and I Know Because I Have Done It)
I set out in the winter of 2007 to develop a home based business which could be used to generate significant cash anytime it was needed. This resulted in many hours of research into many different tools and techniques, most of which led to dead ends and little cash. I decided, at this point, to write down my specific objectives as follows:
- I wanted to create a business in which I was interested, with products that meant something to me personally since any business takes time and effort and I did not want to spend time and effort on something I did not find interesting and enjoyable.
- I wanted the products to be universally attractive to people of all ages and interests to maximize the potential market in which to sell.
- I wanted the products to be readily available at relatively low cost to maximize the number of people who could afford to purchase them.
- I wanted the package and postage costs to be low, and ideally the product should be capable of being posted without requiring to visit the post office.
- I wanted the product to be relatively robust and not require special packaging.
- The business would need to be scalable, meaning that to increase the amount of profit, it would be simply necessary to increase the volume of products sold.
Once I had set out the basic requirements, the answer was immediately obvious – MUSIC CD’s!
I have always loved music of all types, there is a massive market for CD’s (despite the increasing popularity of downloadable media) and it’s easy and cheap to ship with minimal postage and packing costs. Ok – so that’s the product – but is it possible to make money by buying and selling music CD’s?
The short answer is Yes! It’s easy to see that to make money I would need to source music CD’s at a price that would meet the basic equation: Selling Price must be greater than 120% of (buying price + selling costs + p&p costs) I set the margin to 120% as the minimum required to make the whole venture worthwhile. What this means is that if a CD could be sold for 15 units (£, $ or whatever your local currency happens to be) and the selling costs are approximately 5% of the selling price then I would need to be able to buy that particular CD for approximately 10 units taking into account typical postage and packing costs. I will use $USD for simplicity but this business model works for any currency. The calculation can be simplified by assuming that you need to be able to buy an item on Ebay for around 2/3 of the planned selling price to make it profitable.
So, could I buy a product for $10 and sell it for $15? The simple answer is “yes”.
I began to search for appropriate CD’s on eBay which seemed to sell well and then searched other CD providers to see if they could be bought for less than 2/3 of the eBay selling price. Again this proved relatively easy and the arbitrage method was born.
Simply, I identified CD’s that sold well on eBay and then sourced them from other CD providers. These were generally pre-used items but significant profit margins were easily found.
In the first few weeks I cleared over $400 in profit and cash generation has been consistent ever since!
I’ve presented some of the tips and techniques that I use to make big profits by buying and selling music CD’s. I have to admit that there were a few problems along the way and it took me a little while to work out some of the detail. For example I found that some CD providers were just not able to provide the right prices to enable a decent profit to be made. It took me some time to find the providers that seemed to be able to consistently offer decent prices and were also reliable.
Another example was in finding the right CD’s to sell. There are a number of tools to help here and I think I found the best one after several months of tests and trials.
If you want to read the full detail of just how I sorted all these difficulties then I’ve put it all together in an ebook. This ebook currently sells for $19 on Clickbank but I’ve giving a free complementary copy away to readers of this article for the next two weeks.
To obtain your FREE copy of “Create Your Music Money Machine” then go to:
http://internet-ebooks.net/recommends/the_music_money_machine_free.html
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