Path 9: Scalping Without a Tomahawk

Resources on the Topic:

Ticket Scalping: An American History By Kerry Segrave
Wikipedia Info on Scalping

Have you noticed how much more difficult it is to get those Celine Dion tickets you wanted? Since the rise of Ebay and the online world, ticket scalping has moved from the street corner to the corner office. Big name companies have gotten involved, and websites such as StubHub have made millions for their inventors. In the mean time, us lowly ticket buyers have taken a royal thumping because of it. Well my friends, it is easier to fight back then you might think!

The concept of ticket scalping is simple, demand vastly outstrips supply for many entertainment events such as concerts, sporting events, and comedy shows. Because the venue sizes are limited and the ticket prices for most shows don't vary with the rise and fall in demand, some great arbitrage opportunities are available. Prior to the internet era, in order to capitalize on these opportunities, you had to sell your tickets in the newspaper or on the street corner outside the venue. Not only did this limit the range of customers, but it also kept ticket scalping as a backroom operation, looked upon with distrust and skepticism. Nowadays, Ebay.com has opened up the world of scalping to a huge range of customers and on top of that, improved security features on tickets mean they are harder to duplicate illegally, which means your customers can buy with confidence.

So the big question? Can I really make any money with this? Can it really be a path to prosperity? YES! You will be amazed at the opportunities that exist. For sports like baseball with 81 home games per year, the opportunities are vast. Even a slim profit of $20 per ticket will quickly line your pockets with over $1500 per year. Multiply this by several seats for several teams, and then factor in basketball, football, hockey, racing, concerts, plays, comedy shows, etc. and you can understand how this could easily add up to thousands of dollars per year.

Now the question is "where to start?" The easiest path is definitely finding a sports team that interests you. Personally, the New York Yankees are my favorite team, so it is an obvious and easy starting point. Consider the NFL, NBA, MLB, NHL, College Basketball, and College Football. After listing 5-6 sports teams that interest you, you need to step back and study the demand for each of these teams. Remember that the driving force behind scalping tickets is surging demand, so the Florida Marlins, who struggle to sell tickets, are probably not a good starting point. For starters, focus on the big names, Dallas Cowboys, Chicago Cubs, LA Lakers, Detroit Red Wings, Florida Gators football, Duke basketball, etc. While these teams may not sell out every game, you can count on high demand, meaning high profits, for these teams. You should probably start out with only one team for your first season, and personally I would recommend football as a great starting point. The 8 home games mean that the workload is reasonable and the demand is high for nearly every game.

After you have picked your team, a trip to their website should give you all the info you need about season ticket packages. For some teams, such as the Cubs, demand for season tickets is so high that you may get wait-listed. If this is the case, add your name to the list, and then move on to another team. For your first order, keep the price reasonable. You don't want to get stuck with front row seats that you can't unload. Target middle of the road seats. These won't break the bank and should have plenty of demand.

Finally, Ebay.com will be your key outlet for the tickets. Before you post the tickets, make sure you look at some other ticket postings for ideas. You will need to make sure your postings get noticed. Typically, the best method for selling is two fold. First, post the tickets online about 2 months before the event, especially if it is an event with a lot of hype. Set an extremely high Buy it Now Price and Reserve Price. If they sell, great. If not, then move on to step two. About 12 days before the event, relist the tickets with the intention to sell. While everyone has different Ebay strategies, I personally believe that the best results are achieved without a reserve or buy it now price. This excites customers and encourages bidding, which usually means great prices for you.

After the tickets sell, collect your money (Paypal really simplifies this process!), and ship the tickets off to their new owner. They will get to enjoy the game, and you can enjoy the profits. After one season of sales, your expertise level should grow enough that you should consider extending your operations. Add other teams, sports, and finally you can move on to popular concerts and shows.

As if the money isn't enough incentive to try out this path, the other bonus is having easy access to top notch sporting events. If the Yankees are playing the Red Sox and you want to go, it is simple if you have season tickets. I know one individual who has season tickets to 12 NFL teams. Not only does he make great money (he had 9 of the playoff teams last year, which means huge money!), but he chooses a top match-up every weekend and travels around the country to see them! How awesome is that?

For sports fans, ticket scalping is a great means of earning money and gaining access to the game!

Good Luck and Happy Scalping!

Keys to Success:

Start Small. There is always a risk your tickets won't sell for a profit, so you don't want to overextend yourself.
Buy what you know. I don't follow Hockey heavily, so I wouldn't risk getting stuck with undesirable Hockey tickets.
Be punctual. Because the tickets are for a certain date, you have to get the tickets to your customers at least 4-5 days before an event. Remember they may need to travel!
Always look for future opportunities. If you see a team in a rebuilding mode (aka, Notre Dame Football), this may be a great time to get season tickets that otherwise wouldn't be available. Jump in now, even if you aren't making any money, with the hopes that the team will improve in a few years.