Craigslist is a great way to make a bit of a side income if you live in a popular area. Craigslist is great because it’s free to post things for sale, and everything on there is local, so it can be usually be picked up or dropped off. I personally know two people that make a good amount of money utilizing Craigslist, and I will divulge what they do in this post.
Make Money Reselling Products
My good friend Jason probably makes around $10,000 a year side-income just following one type of product. He finds deals on this one product and resells them back on Craigslist for anywhere from a $300-$1,000 profit per sale. By following one product, he is an expert in terms of what is a good price and what isn’t. This way he knows almost right away generally how much money he can make on a deal and whether or not it is worth his time.
The main thing to keep in mind is that it’s not as cut and dry as just looking at a post, finding a good price, and buying it, then selling it for more. Jason does a lot of negotiating in order to get the product at the lowest price possible. I’ve seen him buy stuff for $1,000 less then the asking price, and turn around to sell it for $800 more than he paid within a couple weeks. There is some work involved in remembering what has been up for sale for a while, and leveraging a good situation (for example somebody is moving and needs to get rid of it right away). This takes a lot of time to get good at, but I’ve noticed that Jason is much better at it now than when he first started, and his higher profit margins show for it.
If you want to do the same, start searching up some products which you think may have a high chance of reselling for profit and begin your research. Watch what the price is when the product usually gets posted. Watch how quickly it gets sold. E-mail and call some people, try and negotiate pricing down even if you aren’t going to buy just for practice. Get a feel for how people will react. I know there are times when Jason calls somebody to offer a price, and they literally say no angrily, but will call back a few weeks later accepting the price…they obviously had no other offers in that time.
Make Money Providing Services
I had a guy come by a few weeks ago to look at my Dodge Viper since I had it up for sale. The guy owns a pretty successful digital media company near Washington DC, and he was pretty young too. So my curiosity peaked, and I was asking him how he got started. He went to the University of Maryland under the entrepreneur school, and while there he started his company. By the time he had graduated, he decided to just keep it going full time. When that happened, he was desperate to bring on more work because he needed money to keep things going and pay the bills.
I was especially interested in this part because I wanted to know how he brought in new business since I am sort of in the same boat with Tri Megatech. It turns out that he went through the services, gigs, and jobs sections of Craigslist to try and get any work that he was capable of doing. He was sending hundreds of e-mails a week, but it proved to be useful because it built his initial clientele up enough that he is now turning work down. If you were good, you could even setup relationships with other people and outsource work that you can find on Craigslist. As long as you know what you will need to pay to get it done, and what you can get, you can make money by just sending some e-mails out.
Have you used Craigslist or any other site like eBay, eLance, etc to make extra money on the side or even a full-time income? Feel free to post your stories in the comments below.