How To Make Money Reselling Proxies
The internet has given entrepreneurs nearly unlimited ways to make money and start a business. However, the sheer number of potential business opportunities can make it hard to pick. If you’re a prospective entrepreneur, you might struggle to even learn about different ways of making money online.
One of the simplest ways to get started is by learning how to make money reselling items online. The vast majority of businesses involve reselling things in some way, whether it’s physical objects, knowledge, digital products, or services.
You can get in on the reselling business yourself after doing a little research. Keep reading to learn what reselling is, how to make money reselling things online, and the top ways to make money by reselling digital products like proxies.
What Is Reselling?
Reselling is just what it sounds like: It’s the act of buying something and then selling it again to a different customer. Almost every company performs reselling in some way. Retailers resell things they’ve bought from wholesalers, and manufacturers resell materials that they’ve combined into new items.
The trick with figuring out how to make money reselling items is that you need to sell things for more than you paid for them. This is known as a markup, because you’re marking the prices higher than those of your supplier.
You might wonder why people are willing to buy items at a markup. There are plenty of reasons why someone might think the markup is worthwhile, such as:
- You’re reselling items they can’t find in their area, so they’re willing to pay more just to get them.
- You’re selling things in smaller batches than wholesalers, and they don’t need a large quantity, so they’re still saving money compared to buying in bulk.
- You’ve bundled different items or services into one convenient package, so they’re paying to save themselves time.
Basically, people will pay a markup if they’re saving time, effort, or money somewhere else.
You can become a reseller, too. It’s as simple as finding something that you can purchase for a profit and deciding how you want to present your offering so that it’s worth the markup.
The Basics of Reselling
There are four basic steps to becoming a reseller. You need to select a product, find a place to buy it, choose where you’ll sell it again, and decide how to market it. Here’s how to handle each step of that process.
1. Select the right products to resell
It may seem obvious, but the most critical element of reselling is choosing products that people want to buy. Not every item has an equivalent resale value. For instance, a 10-year-old car is not worth the same as a brand-new vehicle. On the other hand, some products’ value stays the same or even appreciates over time, like collectibles, real estate, or certain services.
For reselling to make sense, you need to choose a product that you can buy below its resale value. People reselling clothes often sift through thrift stores to find hidden gems that are worth more than the store understands.
Others choose items that they can buy in bulk from wholesalers so they can sell them individually at higher prices. The second option is more reliable because it doesn’t take much luck or work to keep your supply consistent.
You should also consider reselling something that you understand. For instance, if you’re a software expert, it probably makes more sense to resell digital services than it does to resell sneakers. Your knowledge will help you identify target markets and market your products more effectively.
2. Find a trustworthy supplier
After you choose a product to sell, you need to identify trustworthy, reliable suppliers. It’s not enough to buy items in bulk. You also need to trust that the quality of your chosen products will be consistent and appealing to buyers.
You may need to do some research to determine whether a given supplier is reliable. Some things to study include how your supplier sources the products in the first place, what guarantees they offer, and whether they provide any extra services that will make your job easier.
The best wholesalers often provide dedicated reselling programs that are intended to support entrepreneurs like you. They may deliver products directly to customers on your behalf or provide educational resources. If these programs are in place, you can likely trust that the products are worth the investment.
3. Choose a reliable online reselling platform
Next, you need to decide where you’ll actually sell your products. Today, the absolute best and most consistent reselling platforms are found online. Possible reselling platforms include:
- Your own eCommerce website: Services like Wix, Squarespace, and Shopify make it easy to set up online stores for just a few dollars a month.
- Craigslist: You can sell items in specific locations by listing them on Craigslist.
- eBay and other auction sites: If you want to try driving up prices, you can list products on auction sites to see what people are willing to bid. This works best if you’re reselling a product with high demand.
- Reselling apps: Some apps are specifically designed for reselling products. You can post items and trust that they’ll be seen by people who are interested in buying similar things.
The platform that works best for you depends on what you’re reselling. Most reselling apps are dedicated to specific types of products, like how thredUP and TheRealReal are devoted to clothes. When in doubt, setting up your own eCommerce website is always a safe option.
4. Figure out your angle
The last step is to decide the angle you’ll use to market your products. Some items come with obvious possibilities, such as reselling thrifted luxury clothes for a discount. Others require more creativity.
Remember that your angle will determine what people are willing to pay for your products. The more convincing your hook and marketing pitch, the more people you’ll find who will buy your products at your chosen markup.
The hardest part of the entire reselling process is often deciding what you want to resell in the first place. After all, you need a product that you can quickly source from a trustworthy provider and resell for a profit. Just as importantly, your product needs to be something that you understand and can present to customers as a worthwhile purchase.
That’s why you should consider reselling proxies. Most internet users can benefit from using a proxy to protect their online activity. That makes them an easy product for which you can build demand. You might choose to market the proxies you resell to:
- Individual internet users who want to protect their anonymity
- Gamers who want to run multiple accounts or protect their accounts from bans
- Researchers who want to protect their web scrapers from being blocked
- Marketers who want to get a better understanding of how other people see their websites
Any demographics that care about protecting their identities online are a potential market for reselling proxies. You can even integrate proxies into software you already provide and resell them as part of a bundled package. The sky’s the limit. But how do you actually resell a proxy?
How to resell proxies with Rayobyte
You can quickly source ethical, trustworthy proxies by working with Rayobyte. The proxy itself is an address that a computer sends traffic to.
You can sell access to an individual proxy by sending a customer its address in return for a payment. You can also make your proxies more worthwhile by offering additional services, such as integrating proxy protection with software or managing proxy rotations on your clients’ behalf. Rayobyte actively supports resellers like you with a simple, powerful, developer-friendly application programming interface (API) that makes it easy to resell proxies to your customers while providing extra value.
Rayobyte’s proxy API allows you to integrate proxies directly into your existing software. If you sell web scraping services, virtual private networks, or any other software, you can use the API to add proxies to your current offerings. That makes reselling proxies as simple as offering privacy-protection bundles for a profitable markup.
The API also gives you convenient access to automated user management. With the proxy API, you can monitor which customers are using proxies and automatically swap out proxies that have been blocked. This improves your customer service and your clients’ experience, and it makes the markup more worthwhile. Finally, Rayobyte grants you access to a proxy management dashboard through which you can check the status of all of your proxies at a glance.
Types of proxies you can resell
Depending on your target demographic, you can choose to resell three primary kinds of proxies. The first is data center proxies, which are housed in server farms. They’re inexpensive, but because they are obviously proxies, they’re more likely to get blocked. These proxies are best resold in bulk to institutional users.
The next option is to resell ISP proxies. They are housed in data centers but are connected to an ISP, so they appear more human to automated security programs. They’re more expensive than data center proxies, but they make an excellent product to resell to high-traffic users.
Another valuable type of proxy you can resell is the residential proxy. These proxies are connected to actual, physical residential addresses, making the traffic look like a human internet user. As a result, they’re less likely to get blocked than data center proxies. That means they have the highest resale value, too. You can resell individual residential proxies to privacy-minded people for significantly more than the cost of buying them in bulk.
How Much Money Can You Make Reselling Proxies?
It’s natural to wonder, “Can you make money reselling proxies?” The answer is yes, absolutely. The amount of money you can make this way is limited only by the target market you choose and your marketing efforts.
Once you’ve purchased proxies, learning how to make money reselling them is simple. The goal is to find a target market that’s interested in buying one or two proxies at a time. Then you can buy proxies in large quantities at a discount and sell them individually for much more than what you paid for them.
Reselling is effective because you can make use of economies of scale. When you resell, you make money without investing time or capital into developing your own delivery system or purchasing expensive IP blocks. You just find interested customers and convince them to make a purchase at the resale price. Your costs are limited to your proxy purchases from wholesalers like Rayobyte.
For instance, say you buy 200 ISP proxies for one month at a bulk rate of $4.80 each. You spent $960. If you resell each ISP proxy for just $7, you make $440 of profit. You can further increase your profit margin by buying proxies in larger amounts for greater discounts or reselling proxies for higher prices. You can structure your purchasing and selling to fit your business and customer needs.
Start Making Money by Reselling Proxies Today With Rayobyte
Reselling is one of the most cost-effective ways to start making money online. Once you learn how to make money reselling online, the basic process works equally well for everything from clothing to proxies.
You can learn more about how to make money reselling proxies by getting in touch with Rayobyte. Whether you want to directly resell individual proxies or bundle them in your current software with Rayobyte’s web proxy API, it’s one of the top ways to make money by reselling. Start making money online today with Rayobyte’s simple and effective reselling tools.
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