The name of the game here is information differential or information imbalance. It’s easy to get the impression that if you see news on one website, then people that visit another website will automatically know the news. After all, the internet is just a giant spider web, if you will, of links.
The data that you can find on one place can also be found or accessed from another place sooner or later. Well, this is too much of an assumption to make. It turns out that in certain situations and regarding certain types of data, data actually travels slowly.
This is a money-making opportunity for you. While a lot of people know about Fiverr and they know that they can buy services starting at $5, not everybody knows this. Even if people have heard of Fiverr, not everybody has actually used Fiverr.
Again, this is an opportunity. You only need to find other websites on the internet like Facebook pages, Facebook groups, message boards, forums, and other places people post information. Some of these places have a marketplace. This is where community members offer to either buy services, offer services for sale, or do a little bit of both.
Once you find these places, sell Fiverr services on them. Of course, when they click on the link, they’d go to your website, but you’re actually just reselling Fiverr services. You’re not offering the services yourself.
Again, the operative principle here is to buy low and sell high. You buy low on Fiverr and you sell high on these other places.
The big advantage here is that you get to mark-up Fiverr services. It’s not unusual for people who buy something for $20 on Fiverr to turn around and sell it for $200 to $500 on their own website. Not too shabby.
Another big advantage is that you get to offer the best service provider. You have to remember that there are a lot of service providers on Fiverr. There are a lot of people from all over the world offering a wide-range of services. Not all of them are good. Some of them however are experts. They are at the top of their field.
What you can do is you can offer the best service providers from Fiverr. Sure, they sell at a higher price, but you can always mark it up. This way, you can resell only the very best and leave the garbage around.
Finally, the biggest advantage of this business model is you name your mark-up. If you think you can get away with 100% mark-up, go for it. If you think that 500% profit is possible and probably, take advantage of it.
You have full freedom because you’re advertising on third-party sites, but when people click a link, they don’t go to Fiverr. They go to your site. This is where you advertise services that you turn around and buy from the “best of breed” service providers on Fiverr.
The big disadvantage with offering best of breed service providers is that those people can disappear. I know this first-hand because I used to get really awesome Kindle book covers from this person who cranks out one best-selling cover after another.
I thought that I would always come back to this person until I learned my lesson the hard way. For four straight months, he was unresponsive. It’s as if he fell of the face of the Earth. These suppliers are all over the place on Fiverr.
In fact, there is a rule of thumb. The more competent the service provider and the more of an expert he/she is, the flakier that person is. We don’t like flakes. Nobody should, but unfortunately they’re part of the mix.
This is the risk that you run. Do yourself a big favor. Find an alternative. This means that you have a back-up or two. For example, you’re offering graphic services and you normally turn around and buy Michelangelo’s services. If for whatever reason he flakes out, you can always tap Raphael or Leonardo so you can cover your assets.
Another key disadvantage is that the quality might be spotty from time to time. If this happens, your reputation may suffer. Remember you’re charging a fat premium for this service. You are riding on somebody else’s expertise.
What if that person gets sloppy or lazy? Let’s face it. This happens to the very best of us. Again, this is where having a back-up comes in. If your main “go to” person delivers garbage all of a sudden, you can at least quickly pivot and order from the next expert and come up with something decent.
Another drawback to this business model is that many markets are increasingly sophisticated. Don’t think that the person you’re selling to are idiots. Don’t think that they are completely wet behind the ears and they haven’t heard of Fiverr. If they haven’t heard of it, they will hear about it soon enough.
Now, some people simply don’t care. Some people may realize that you’re just flipping services and guess what? They don’t care. Why? Their time is very valuable to them. They have other bigger fish to fry.
Other people can take this very personally. They don’t like to feel that they’ve been taken advantage of. They can see right through your system. It’s obvious to them that you’re just flipping services by buying low and selling high.
These people are probably not your intended buyers anyway. Chances are if they’re that paranoid, cynical, and skeptical, they probably wouldn’t have bought from you. If they did, they probably would’ve turned around and asked for a refund.
It’s a good idea to be discreet. Don’t be obvious about it. However, at the end of the day, haters are going to hate. That’s just part of the game.
Another drawback is people often will only pay you a very fat premium. I’m talking about over 200% or 300% if you have a solid brand. This means that you have a long list of people who are happy with your reselling activities. These are people who really get a lot of value from what you’re doing.
That is hard enough because you’re going to have to perform really well for an extended period of time. You also have to have a solid reseller site. You can’t just go to Blogspot, Weebly, or Wix and scrap together a very basic site. People are going to equate the low quality of your site with the quality of the services you are reselling.
This means that you’re going to have to step up the amount of money you pay upfront for this business. You have to pay solid money to a developer and designer on Fiverr to create and authoritative and expert-looking reseller website.
Finally, you have to get traffic to your reseller website. This means that you have to go to forums, message boards, Facebook groups and pages that already actively resell the Fiverr services you are reselling. Go there. Get people excited. Post your offer and when they click, they’d go to your reseller website.
Find places to resell on
This is very important. Make sure to create a list of all sorts of places where people are selling services. Again, this may be Facebook groups, pages, message boards, or forums. Once you have found these places and looked at the services, play close attention to the prices being charged.
If you notice that a certain type of service tends to fetch a fairly high price across many different sellers and across many different times, chances are good that people who visit this place pay a premium for those who offer that type of service.
Find providers of your target service on Fiverr and hold an audition
By “hold an audition”, I’m not talking about getting people to try out for free. I’m talking about paying for these wide range of people’s services. Again, this is going to drive up your cost, but you need to pay this money so you can see who actually walks their talk. You’re going to have to pay to figure out who’s the real deal.
Again, you’re trying to offer “best of breed” service providers. You’re not just reselling some random rookie’s output.
Build your reseller website
As I’ve mentioned above, you’re going to have to spend real money to put together a high quality reseller site. From the outside looking in, it shouldn’t be apparent that you’re just turning around and reselling Fiverr services.
From the perspective of outsiders who know nothing about you and your service, you should like an established, credible, authoritative, and trust-worthy business.
Present case studies
People are not going to buy from you if you just tell them that you’re the best thing since sliced bread. Things don’t work that way. People are going to say, “Show me.” The best way to do this is through case studies.
This means that you’re going to hire many different service providers on Fiverr and then, give them the same project. You then take the results of the project and pick out the very best provider. You can use those results as your case studies.
This way, you showcase to people that you can actually get the job done. Also, you may want to offer your resold services for absolutely free in exchange for a testimonial. Personally, I prefer video testimonials.
Run the service for free for clients so you end up paying for this service to the provider on Fiverr and then, showcase the positive results. Obviously, leave out any failed results.
I wish I could tell you that you just need to post an ad on forums, message boards, Facebook groups and pages. It doesn’t work that way. You definitely need to do these, but you also have to do outreach. This means that you’re going to have to contact digital marketing agencies and other organizations that normally order the type of service that you are offering.