This could apply to any business. You could advertise horse training service for $500 a month, find a trainer willing to do the actual training for $200 a month, and pocket the difference without knowing anything at all about horses. All you need to now how to do is match services with clients for a profit.

Social media arbitrage works the same way. You find clients who need social media services and are willing to pay $xx for them. Then you find social media providers willing to do the work for $yy, and simply pass on the services. The only work you do is managing the project so your client gets what they want on time.

Many experts in social media are great at what they do and have built huge networks you can take advantage of. In many cases, these experts don’t know how to market their services, and are selling their skills online for a few dollars. They’ll be more than happy to complete your social media packages for you cheaply, and you’ll probably eventually find some vendors you can work with long term.

The key point to remember when doing social media arbitrage is proper pricing in order to turn a profit. Do some research online to find out what social media experts are willing to sell their services for (more on where to find these experts later), and plan on marking those prices up by 300%. This gives you a decent profit.

For example, if you find a client who needs 100 Facebook Likes, and you find a vendor who can provide 100 Facebook Likes, your goal should be to get the client to pay you $30 and for you to pay the vendor no more than $10. Later in this book, we’ll cover how to determine what sort of services you should be buying and selling, and how to find dependable vendors to provide those services.