New Arbitrage Economy and Online Business Opportunities

Introduction

• Era of change: buying, working, and living habits
• Emergence of the "new arbitrage economy"
• Young entrepreneurs earning substantial incomes with little/no prior work experience
• Purpose: Showcase how to start an online business with minimal startup capital
• Transparency: No guaranteed results, but real-life success stories provided

Success Stories

• Joseph: From no income to six-figures/year in a few months
• Michael: $37K revenue at 85% profit margin in three months
• Vaclav: From Uber Eats driver to $57K/month

Speaker's Background

• E-man Gadget: Online entrepreneur since 2016
• Multiple ventures including e-commerce, info products, online marketing agency, YouTube channel, and crypto portfolio
• Emphasis on focusing on one thing to succeed despite personal diversification

Why This Business Model Works

1. Beginner-Friendly: Easy to start for newcomers
2. Exploding Industry: High demand, low supply
3. Arbitrage Economy: Early entry provides significant advantage

Common Online Business Models and Their Flaws

1. Affiliate Marketing: Requires significant upfront capital and marketing skills
2. Amazon FBA: High startup costs, risk of unsold stock
3. Drop Shipping: Similar to affiliate marketing and Amazon FBA, high ad costs
4. Info Products: Time-consuming product creation, significant upfront investment

Metrics to Evaluate Online Business Models

• Unitary gain: Revenue per transaction
• Startup capital: Initial investment required
• Profit margins: Percentage of revenue kept as profit
• Demand: Market interest level
• Fulfillment: Ease of delivering the product/service
• Deal type: One-time vs. recurring revenue

Ideal Beginner-Friendly Business Model

• Service-Based Business: Clients pay $1500 to $10,000 monthly
• Low Startup Capital: Virtually none needed
• High Profit Margins: Up to 97%
• High Demand: Local and online e-commerce businesses
• Easy Fulfillment: Outsource to contractors
• Recurring Revenue: Monthly payments from clients

Arbitrage Concept

• Contractor Arbitrage: Outsource service fulfillment at a lower cost than charged to the client
• Examples: Expedia, Uber, Airbnb - connecting supply and demand

Setting Up Your Business

Step 1: Setup

• Choose a business name and domain
• Set up a business email

Step 2: Pick a Niche and Service

• Ensure clients have high revenue ($10K+ monthly)
• Understand the mechanics of the niche
• Choose an ROI (return on investment) driven service (e.g., Facebook Ads, SEO, email marketing)

Step 3: Arbitrage

• Hire experienced contractors from countries with lower labor costs
• Pay contractors based on the service delivered, not fixed payroll
• Maintain high profit margins (60%+ recommended)

Step 4: Reach Out

• Allocate 80% of time to client outreach
• Methods: Cold calling, cold email, video audits, LinkedIn, Instagram
• Use tools like Loom for video audits

Closing and Support

• Acknowledge the risk of trial-and-error when done solo
• Agency Navigator program offered: Comprehensive training, tools, templates, and community
• Membership includes ongoing support, live Q&A sessions, and engagement with other agency owners