Passive income example

I always love to fly and meet new people. Today I flew back to California and I met an interesting fellow traveler. He is about 50 and works for a US government agency coming to visit his son in California. He has about 10 years left to work before retiring and did not have any specific plans for retirement, until I started probing a bit more.

In fact, he does. And an interesting one in fact. He started this as a hobby but today his business brings him a5 figure income. Guess what?

He sells speciality toys on Ebay and Amazon.

He basically stores and re-sell valuable goods when the supply goes down. He was explaining that he can sometime sells toy cars for many hundred of dollars. He buys new toys, store them and wait to sell them online at his price.

Of course, his original goal was not to make tons of money. It took a lot of work to bring his business to where it is at now.

The trick is a bit like wine or any niche product. He would go to the big retail store and wait for huge discount and buy the products. The way retail works is there is a shelf cost to displaying a product on sale. If the demand is not big enough, it is very expensive to keep it in store. So they sell it to get rid of it looking for products that can turn around quicker and give more value.

But making a product available online is different since storing fee is minimal. Displaying the product on Ebay or any other e-commerce platform is virtually free. The internet is a huge market place. Some speciality products have a huge value.

Therefore, by using distortion in the marketplace you can profit by buying product at deep discount and resale when supply is lower (and demand higher). This is very true for toys and other speciality products.

  • What are you waiting to try?
  • What will your passive income be?