Service Arbitrage
Arbitrage is a term that is often connected with trading – and making money from price differences in markets.
But you can use this exact concept to make money with services… What’s even cooler is that you can choose the difference in prices, which means you can make bigger margins.
Plus, it also doesn’t take a lot of money to get started.
However, you will need to put some time & effort into it, as it’s not just some magic trick that will print dollar bills for you. This article will g look at how you can get started and source the services using Legiit.
What Is Service Arbitrage?
Service arbitrage is the process of buying and selling services and making money from the price difference.
Example: You sell a logo for $150, but get someone else to do it for $30. You have now made $120 on this deal.
And check this out: Your time isn’t going into completing the project. This means your earning potential is unlimited.
With service arbitrage, you would usually use a freelancer who completes the project for you – so your efforts would be going toward finding clients.
Usually, you will be targeting business owners.
Is Service Arbitrage Easy?
While it may sound straightforward, that isn’t necessarily the case. Why?
- You have to learn how to get clients.
- You have to learn enough about the service to be able to sell it.
However, the positive side is that you don’t have to become an expert in either of these things. All you need to do is learn:
- Client acquisition method that works for you
- How the service works and what the benefits are (enough so you can answer questions)
How To Start a Service Arbitrage Business
The first step would be to figure out what service you want to sell. From there, you can start testing out different services and start marketing your services.
Services You Can Offer
Legiit is a freelance marketplace used by thousands of digital marketing agencies that outsource services. Below, we created a list of some of the best-selling services, which you can use to sell to business owners.
1. Website Speed Optimization
The first service that you could sell to business owners is website speed optimization.
While this service is quite technical, it’s probably one of the easier services to sell. Why?
Because it’s so specific, and it solves a problem that could cost a website thousands of dollars worth of conversions.
According to Neil Patel, every second of additional loading time could result in 7% conversion loss.
Which translates into a lot less money.
So your job is to find business owners with a slow website – and with the help of Legiit freelancers, you can make their website LIGHTNING-FAST.
Find a Specialist on Legiit
Over on Legiit, we have several freelancers offering this service. Most are for WordPress websites, but there are a few others too.
Check out the top-rated services below.
WordPress Page Speed Optimization By MonkeyBusiness
Let’s Optimize Your WordPress Website By Developer
Other Information
Here’s an idea for you: Use Gtmetrix and Pingdom to find businesses that have slow websites. Now, you can reach out to them and let them know how much of their conversions they are losing (7%, according to Neil Patel).
The price varies heavily on how much needs to be done to get the website loading fast.
- Potential selling price: $100-1000
- Cost: $10-100
- Target customers: Business owners, WordPress users & similar
2. Blog/Web Content
The next service that you can sell is blog/web content. This is a good one because much of the content on the internet is written.
This means it’s something that most business owners will need, making it a perfect opportunity for you.
Now you could choose to sell blog content, web page content, or both. It’s up to you.
On Legiit, we have a HUGE selection of freelancers that offer these services for some pretty affordable rates.
Find a Freelancer on Legiit
Legiit has a library of talented content writers – and a selection to suit every budget too.
By the way, the pricing tiers below are not an indication of quality – we just wanted to give you an easier way of finding someone in your budget.
All the writers below do incredible work.
Very Affordable (Under 2 cents per word)
Exceptional SEO Content Writing by Premium_Content
Premium Website Content Affiliate by LizWinfrey
Affordable Premium (2-5 cents per word)
500 Word Attention Grabber by BlogCave (Popular)
500 Word Blog By SEOAmber (Top Rated)
Expert Quality 500-Word Articles By BillJ (Top Rated)
Compelling Website Copy by Ombasa
Article Rewriting That Kicks Ass by CristinaPucci
Premium (5 Cents Per Word+)
Stellar SEO Blog Posts by Ish (Top rated)
High-Quality SEO Blog Posts and Web Copy by MandyAspey
Premium Articles That Grow Your Biz by SamPoyan
Other Information
With content, there are so many ways you could go about this.
A lot of business owners look for SEO-optimized content, so it might be worth selling that. Luckily most writers on Legiit do this anyway.
You could choose to be very niche-specific, or just offer content for all business websites. The choice is yours.
- Cost: Usually anywhere from 2cents per word – 10 cents per word
- Potential sale price: 4 cents per word to 20cents per word+
- Target customers: Businesses, affiliate sites, blogs, and news sites
3. Graphics
Graphics is another cool field because you can find some very affordable services. And it also has the advantage that every business needs a logo, graphics on their website, social media, etc.
The one area where it slightly loses out to other services is that the customer usually won’t come back as frequently – as a business only needs one logo.
However, if you can create some recurring offers, like images for social media posts, you should find that the customer is much more likely to return.
Find Graphic Designers on Legiit
Again Legiit has an outstanding selection of talented freelancers that can help you with this. We’ve linked some of the top-rated freelancers below.
Logos:
Get an Outstanding Logo For Your Business by Qamar
Modern Logo Design For Your Business
Social Media & Other Graphics:
Social Media Post Design By DesignIt
Other Information
Keep in mind it heavily varies what type of graphics you are buying. But you should be able to sell these services for much more than they cost on Legiit.
- Average selling price: $100-300 (depending on what you’re selling)
- Average cost: $20-50 (depending on what you’re buying)
- Target clients: Businesses, personal brands, etc.
4. Website & Landing Page Design
Every business needs a website – so this is another area with a big market. Plus, it’s also quite easy to sell, especially in local business markets where the owner has no idea how to make a website.
You can also easily find local businesses with bad websites and pitch a newer, cleaner and better one.
Again you have a few different choices between what type of page you want to sell:
- Landing pages
- Websites
- Funnels
Find the Right Web Design on Legiit
On Legiit, we have several highly talented website designers that design KILLER websites. Most of these designers use WordPress, but you may also find some others too.
WordPress Custom Design By DMZ
D4Y White Label Agency Quality
Join The WordPress Revolution by ScottLatham
Other Information
- Cost: Usually anywhere from $70 to $300
- Potential sale price: $300 to $2000+
- Target customers: Small & local businesses
5. SEO (Most Opportunities)
We’ve left the best for last here…
Out of all the services on this list, SEO probably has the most opportunities and services you can sell.
If you don’t know what it is, it’s basically helping business owners rank in search engines.
The main downside is that you will have to spend some more time learning it – because it can get quite technical.
If you would like to learn SEO, we recommend signing up for the Superstar SEO academy. This is the same course several agency owners that use Legiit have taken – and found some huge success.
Back to SEO, here are some of the services you can sell:
- Backlinks (Free links, Niche edits, Guest Posts)
- On-page optimization
- Keyword research
- Audits
Find the Right SEO Expert on Legiit
On Legiit, the SEO category is the most popular in the entire marketplace. Therefore, you really shouldn’t struggle to find the right SEO freelancer for your service arbitrage business.
We have also linked the top-rated ones below.
Best Off-Page SEO Services
Best Keyword Research Services
King Kong Keyword Research by FreddyEdmonds
Best On-Page SEO Services
DFY On-Page SEO Service by Kickstart SEO
Managed SEO Services (for High-Ticket Recurring Clients)
Managed SEO Service (White Label) by SuperstarSEO
Do You Need a Website For Service Arbitrage?
This one slightly depends on what you’re selling and who you’re selling to.
If you’re promoting your business on social media, you may get away with just using stripe/PayPal invoices.
However, for many of the services, you’ll look much more professional with a website. Plus, if you’re selling SEO, content, or web design, the businesses you’re selling to will probably want you to have a website builder.
If you want to, you can use a drag & drop website builder:
- Wix
- Kartra
- LeadPages
- ClickFunnels
And there are many other choices out there too. For example, you could also hire one of the Legiit website designers to build you a professional website.
Most designers on Legiit have packages starting from just $100.
Ways To Get Clients For Your Service Arbitrage Business
The way you get clients is the same as you would normally.
But again, it’s vital that you first understand the services and their benefits before you try to reach out to business owners.
They will definitely have questions, and you’ll need to be able to answer them.
Cold Email/Cold Phone Outreach
Cold emailing and phone outreach are arguably one of the quickest ways to find clients. The key here, however, is NOT to call a company and say, “Hey do you need this service for $200.”
Instead, you should identify companies with the issue you solve and offer a solution. For example, if you’re selling a high-value service, you could potentially also offer them a free consultation first.
At the end of that, you can pitch the offer that you purchase from someone on Legiit.
Social Media Outreach
On social media, you could do something similar to what you would with email and phone. For example, you could sometimes directly promote your offers on the accounts you build up and find companies that need your services.
However, make sure that you are mainly posting value on your social media accounts, as this will help you grow.
Bonus Tip: You can also find Facebook groups where your target audience hangs around, make offers, and build connections there.
Advertising
Finally, you could also advertise and sell directly to businesses that way. Of course, this would require a little more investment upfront, but if you have a good offer + learn advertising/copy, this could work out well.
Some platforms you could use include:
- Facebook ads
- Google ads
- LinkedIn ads
- Quora ads
- Twitter ads
More Articles on How to Get Clients:
How To Get Your First Freelancing Clients
How To Get Freelance Clients – Top 13 Methods
How To Get Clients FAST
Recap: Starting a Service Arbitrage Business
Lastly, we wanted to give you a quick recap on how you can start a service arbitrage business:
- Choose a service
- Educate yourself on it
- Build a website or hire someone (optional: but highly recommended)
- Reach out
- Face objections
- Try again. Repeat your wins.
Click the button below to sign up for a FREE Legiit account so you can start accessing all of these services.
