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This is a guest post by Financial Wolves, a blog about making money with side hustles to help you achieve financial freedom.
With an ever-rising cost of living, many people are searching for sources to earn some additional income. If you are looking for a side hustle, which can help you make some extra cash, a great option to consider is flipping phones for profit.
Here, we will guide you as to how you can earn passive income by flipping cell phones.
Why Flipping Cell Phones is a Great Option
Firstly, cell phones have become an essential commodity for almost everyone. Secondly, the cell phone business appears to be highly profitable.
Cell phone manufacturers have entered into a stage, where it is inevitable to introduce new technology and specs. Brands like Samsung and iPhone release new models almost every year.
As a result, people using older versions or models of these Smartphones continue to sell their devices and buy new ones. This is the reason, why it is possible to make huge profits by flipping cell phones.
Things to Consider While Flipping Phones for Profit
Although earning huge profits by flipping phones isn’t as simple as you think, you can earn a reasonable income by simply showing persistence.
Below are a few things to consider before you start flipping cell phones for a profit.
Use Caution When Buying Cell Phones
People willing to sell their cell phones usually prefer online markets. Online sites like Craigslist and eBay are some of the best places where you can buy a used cell phone at a good price.
The first thing that you must consider when buying a used cell phone is its make and model. Look for the phones that are not too old and are still popular.
Another aspect to consider while purchasing a cell phone includes looking for phones with cracked screens that can be repaired. Keep in mind, you can often negotiate the price for these phones.
Phones to Avoid
Following are the cell phones that you must avoid purchasing irrespective of the fact that they are too cheap.
- Phones that are locked or still have a user account attached to them
- Phones using CDMA technology
- Phone with a Bad ESN
- Phones with BAD IMEI
- Phones with faulty speakers or broken power/volume buttons
- Don’t buy a cracked phone if it costs a lot to replace the screen
Reselling Cell Phones
Once you have bought a couple of used cell phones, the next step is to resell them and earn some profits. Two of the most viable resale options are buyback vendors and the private market.
Working with buyback vendors (including sites like Decluttr, BankMyCell, and the phone carriers themselves) offers a wide range of benefits. The sale is guaranteed, and payments are typically quick. In many of the cases, shipping fees are also included. However, these vendors don’t always offer top prices for phones.
On the contrary, you can sell your phones at a better price by using private markets. The disadvantages of this option are slower sales and the potential for fraud. In some instances, the seller also needs to pay listing fees.
Calculate the Profit First
This is another essential aspect, which you must keep in mind while buying a cell phone. Once you have found a phone, calculate the profit you can get by flipping it. While doing so, you need to know the actual specs of the phone, how easily you can sell it, and how much money you can get for it.
Don’t forget about the expenses you may incur while fixing a broken phone.
Once you take into account all these factors, don’t accept anything less than the price that gives you your desired profit margin.
How to Increase your Profits
The profit you gain also depends on the quantity of the phones that you resell. This factor plays a vital role to enhance your overall profits. For this purpose, keep a record of the phones that you have bought and sold.
You can also try different business strategies to earn more profits. You can search online for the best tactics to grow your cell phone flipping business and make it more profitable. This Guide to Flipping Cell Phones is also a great resource.
Keep on looking for the best and most reliable website or supplier where you can buy cheaper bestselling phones. The one attractive component to reselling cell phones as a business is that you can scale it to be a complete online venture.
How Much Money Do You Need to Start a Phone Flipping Business?
It is essential to know how much money you need to put into a phone flipping business. How fast you can grow your business depends largely on how much funds you have. If you have a limited amount of capital, you can start this business on a small scale.
Initially, you won’t be able to make significant cash flow right away without being able to buy inventory. It is possible to increase your profits by gradually putting more money into this business. Always view flipping phones as a business. For instance, you can make a good start with at least ten phones in a month.
With a goal of earning a substantial income through flipping phones, you have to invest sufficient money, time and efforts. You have to learn the art of buying cheap phones and resell them at a good price.
After some time, you can expand your phone flipping business by pouring more funds and managing your supply chain. With this approach in mind, you can earn a reasonable income.
Are you ready to start flipping cell phones? Let us know in the comments below.
Want to fast track your cell phone flipping success? Pick up your copy of the Cell Phone Resale Guide TODAY!
About the Author
Kyle runs Financial Wolves, a blog focused on helping you make more money to achieve financial freedom. After repaying his student loans, he shifted his focus to make more money from side hustles, real estate, freelancing, and the online economy.