How to Start a Phone Flipping Business. It’s one of the top side hustles
So here is how to start a phone flipping business.
The first step
The first thing you’ll have to do is to set up a budget. An amount of money that you will start your phone flipping business with. A pre-set amount of money that you’ll be working with.
You want to do that for many reasons, but mainly because that amount of money you’re going to choose, you might lose it all.
When you get started, you won’t know anything about flipping phones. You might not even know much about cellphones in the first place.
By starting with a pre-set amount of money, you limit your loss to that amount and not a dollar more.
You’ll keep working with that money without putting any profit in your pockets. You’ll keep scaling and reinvesting your profits until your little side hustle business has grown so much you don’t know how you could spend all that on phones.
How much money can you afford to lose?
So think about that carefully, how much money are you REALLY willing to lose?
If you are not willing to lose at least 200 bucks, go stack more money into your bank account until 200$ doesn’t seem like a lot to lose. Because you can hardly get started with less considering you might very well lose money in your first couple transactions.
Step two. Become a specialist.
So now that you have a set amount of money you’ll choose one phone!
That one phone is the only one you’re going to be flipping.
So that phone should not be too old, but not too recent either, and that phone has to be a really really popular phone in your area.
It could be an iPhone 7 or 8 or even a Samsung s10. I can’t tell you which phones to choose precisely because it will be different in every city, plus depending on when you read this it’s going to be even more different.
So why one phone? I’ll tell you I promise but first it’s really important I tell you what to do next. Trust me.
So a good choice for a first phone to flip will be found on sale for something between 140$ up to 200$ and there should be MANY on sale on Facebook marketplace or any equivalent treading platform. Like a shit ton. The more the better, because the more you find on sale on Facebook marketplace the more popular it is, and the more probable it is to be a phone that many people buy used.
It’s really key because the last thing you want is a phone that takes forever to sell.
Step three. Know your market
Once you’ve chosen you got to look at the prices every single day until you know what’s a really good deal for that specific phone.
And that’s why you start with only one phone.
You’ll get to know its market so well you’re going to know exactly what to look for and at what price in which color and you won’t make any mistakes.
It will become your safe zone. It will become a phone that you know you’ll always make money with no matter what. (Well until it’s not popular anymore. But don’t worry it can take years.)
So let’s imagine you usually find it between 160 and 180, and you’ve seen one at 140 after looking on Facebook market place every single day for a week!
Good! Now you know what a great deal is for that phone. So now, you won’t buy one for more than 130.
A good deal in business is made when buying, not when selling. So if 140 is a price you see once a week you-won’t-buy-this-phone-for-more-than-130-period.
If you don’t want to lose money as you’re getting started it’s crucial you do that, because you don’t know how much people are really buying it for.
Again we imagine that this phone is usually on sale between 160 and 180. So you won’t sell it to anyone at 180.
Nobody will pay full price. You sell to people who buy used phones. Everyone wants a good price. Nobody buys at 180.
You see people’s adds for 180. But that doesn’t mean it sells, and I promise in a situation like the one we described. Nobody buys at such a price.
Keep this in mind
Keep this in mind. Its key: A good deal in business is made when buying. Never when selling.
So when comes time to sell, you want to sell it at a good price and you want to sell it fast. I mean a good price for the buyer. So in our example, you put it a 160 and you say yes to offers of 140 to 160.
A phone isn’t worth anything.
You won’t buy 5 phones with 4. You won’t buy 5 phones with 4. (I know I said it twice.)
But sell these same 4 phones and you’ll buy 5 phones back.
It’s all about that. Knowing your phones and their market. Buying great deals. And selling the phones back FAST.
Obviously it’s way easier said than done, I’ve explained it really fast. Clearly, you still have a lot to learn.
So, if you still feel like you need tools and further explanations, or if you want to scale it to an insane level. Know that I’m currently creating an online course in which I’ll teach you everything there is to know to make as much money with this side hustle as with your current job.
That’s going to be an A-Z, step by step guide where I’ll show precisely and in details.
- How to get started without losing money.
- How to find the best deals.
- The most time effective way to sell
- How to buy and negotiate.
- We’ll cover what tools you can use to get to know the price you should buy and sell every single phone model in your area so you can easily make 10x the cash flow other phone flippers make.
If you want to learn all that and more stay tuned!