Another point to make is that with arbitrage, you're always trading for pennies. Unless you can scale it ridiculously, you'll always be capped by your time. Its trading dollars for hours.
Now if you were the guy trading 200 washers and dryers in one phone call and not physically picking it up and selling each one to customers... that's scale. So for example if you could wholesale 200 washers from one guy to another guy, or wholesale 50 at a time without physically getting involved, that's an ok arbitrage business, but at any time your supply could run out, or they could raise prices... you still don't have complete control over your business. Could you keep it up for 10 years? Is it something you could remove yourself from, scale up, and sell in a liquidity event? No... it's just quick cash, a quick fix...
Look at Sal with the Paint Brush Cover. He owns his own product. He controls supply. He controls price (to a point). He probably makes great margins compared to cost. That's a real scalable business. Would his business still be around in 10 years? Would he be able to sell his company for millions if he chose to? The answer's yes and yes.
Arbitrage is not real entrepreneurship (except for few large scale outliers, like 7 figure accounts). It'll pay the bills but it's just trading dollars for hours and there's a limit to how much one person can arbitrage in a day. Read both of MJ's books and learn what creates value. As he says... we don't live in a perfect world... therefore there's opportunity for improvement in every defect or imperfection.
Now if you were the guy trading 200 washers and dryers in one phone call and not physically picking it up and selling each one to customers... that's scale. So for example if you could wholesale 200 washers from one guy to another guy, or wholesale 50 at a time without physically getting involved, that's an ok arbitrage business, but at any time your supply could run out, or they could raise prices... you still don't have complete control over your business. Could you keep it up for 10 years? Is it something you could remove yourself from, scale up, and sell in a liquidity event? No... it's just quick cash, a quick fix...
Look at Sal with the Paint Brush Cover. He owns his own product. He controls supply. He controls price (to a point). He probably makes great margins compared to cost. That's a real scalable business. Would his business still be around in 10 years? Would he be able to sell his company for millions if he chose to? The answer's yes and yes.
Arbitrage is not real entrepreneurship (except for few large scale outliers, like 7 figure accounts). It'll pay the bills but it's just trading dollars for hours and there's a limit to how much one person can arbitrage in a day. Read both of MJ's books and learn what creates value. As he says... we don't live in a perfect world... therefore there's opportunity for improvement in every defect or imperfection.
I agree and this is why I am between a rock and a hard spot. I'd rather cruise through the next 20-40 years years but I have the opportunity of flipping 200 (insert brand name here) washers and dryers per day if I choose to. 1 phone call gets me as many as I want as often as I want. But I agree, most often you are at the mercy of what you can accidentally find on Craigslist. And then once you find it on Craigslist you have to set up a time to go look at it and maybe buy it or maybe you will pass on it which would mean now you are running in double time to find something else to flip. But this is why most people don't continue to do it for very long.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today