Surprisingly, many people don't know what contractor arbitrage is. Contractor arbitrage is not a new thing in the business world. If you look at big businesses today and how they operate, you'll understand why I say that.
Contractor arbitrage is simply the process of buying services from a remote freelancer or agency and reselling them at a higher price. This can be done in a variety of ways, including:
- Hiring freelancers on Fiverr, Upwork, or 99Designs to do quick tasks for you (such as logo design)
- Using services like Kapa99 to outsource graphic design
Outsourcing larger projects such as audio transcription using platforms like Upwork
How do outsourcing and arbitrage work?
To put it simply, contractor arbitrage is the process of using a platform to connect contractors with projects in order to earn money.
You can find these on Upwork and similar freelancing websites. The way it works differs from outsourcing and dropshipping by having little to no inventory involved; instead, you're just acting as an intermediary between the client and freelancer(s).
Another difference is that outsourcing generally refers to a business model where some aspect of your business is outsourced (such as graphic design), whereas contractor arbitrage refers specifically to hiring people on a contract basis for tasks or projects.
In short: contractor arbitrage means you find freelancers or agencies who do work similar to yours (e.g., graphic design), then hire them on a contract basis so they can complete the tasks while you take care of other things in your business.
What do you need to get started and make money with contractor arbitrage?
You’re ready to start making money with contractor arbitrage.
What do you need to get started with contractor arbitrage?
To start using contractor arbitrage, all that's required is an online presence that shows off your work and lets potential clients see what they can expect if they hire you.
You can start your website with simple tools like Squarespace, Webflow, or Wix to start without any coding experience required!
If this sounds intimidating, don't sweat it: there are plenty of guides online that will walk through the process step by step so there's no reason not to have a beautiful website in no time.
What do I need in order to turn my side hustle into my full-time gig?
Once you have some work under your belt and an impressive portfolio on display for potential customers, the next step is finding people who want what you're offering.
This might seem daunting at first, but luckily there are plenty of ways for businesses to find clients, such as cold outreach, social media marketing, etc.
Who is this for? Arbitrage is also known as "Drop service"
This could be an easy way to get started earning money online. It's also an opportunity to understand how to connect the pains and needs of potential customers with solutions.
Contractor arbitrage. It’s not a new concept, it’s something I’ve been doing for years and it has worked over the years because I have perfected my process.
With contractor arbitrage, you can make money by charging your clients one price while paying contractors another price to complete projects for them.
The best part about this business is that you don’t need any experience or special skills to get started because all you're doing is finding leads on one side and then fulfilling those leads with contractors on another side while making huge profits in between!