1BTC Project - The Modified Gary Vaynerchuk Method.

By 2MFTProductions | 1BTC | 27 Oct 2024

Gary Vaynerchuk is an online entrepreneurship guru. If you don't know him you don't swim in the instagram businessmen pool, aren't in the Anglosphere, or just do and don't remember his name. Most people in the English speaking world who are even somewhat plugged into the internet have seen atleast one clip of Gary V.

He lives in the vein of talking heads that inspired grind culture. I'm not sure what he actually does but he is a motivational speaker at the very least.

If you make a living putting talking to crowds and putting ideas into the ether than you will inevitably drop a few world class hot takes in your career. Gary Believes that you can make $100,000 per year through a process he calls Garage Sale Arbitrage. I only partially agree. You could make thousands of dollars using this method. If you focused purely on this method I think you could sell $100,000 of product (maybe), but Making $100,000 profit would be very difficult if not impossible.

What Gary V is proposing is use garage sale arbitrage to make your money.

This isn't ground breaking stuff, if you can buy a widget for $5 and then sell it for $7.50, you will continually make money! Garage sales are great place to find value because people are just trying to liquidate their junk. You can usually get a better deal by buying in bulk.

What most resellers don't share is that picking is difficult and you have to be willing to accept a lot of liquidity and inventory risk. If you remember storage wars, you will remember them finding some item that is worth $100 and the tracker counted that as value. Something is only worth the price a person is willing to pay for it. Under the right circumstances an item can be worth a lot to a specific person. These circumstances and these specific people are hard to find.

My trick aim has always been to be a market liquidity provider. If I can find a widget at $1.00, the market says it sell at $4.00 then I will happily list my widget and $2.50 so I keep as little inventory as possible.

I like to peruse a garage sale or a flea market but estate sales and moving sales are the places where you can find the most value. People are purging a life's worth of stuff and they need it gone asap. Old toys, old clothes, old whatever. Its not uncommon to find a working flatscreen TV for $1. Which can be sold next day on FB marketplace for $20.

Another place where I find value is in the monthly large garbage day for my condo building. People throwing out Ikea shelves, or even old tvs. During the pandemic lockdown I made hundreds of dollars off of peoples' discarded office chairs. If you can get something for free then selling it becomes all profit!

I have found that Ebay is great for selling small items. I like to sell trading cards like Magic the Gathering, Yugioh, or Pokemon through my Ebay. Sometimes I will venture into comic books or figurines. Bigger items create shipping and logistic issues. My general rule of thumb is anything bigger than a regular sized envelope is sold through Facebook market place or at a garage sale. The best part about selling cards is that I can use my company mail room to ship them and increase my margins even further.

Check out my Ebay page here: 2MFT Productions

This is why I call it the modified Gary Vaynerchuk. You take that garage sale arbitrage method and then flip it and sell your overstock back into the market.

Once per year I bring my overstock to my cousin's garage sale and a I liquidate. I have spent the last 3-4 years buying and selling memorabilia online. I keep detailed notes on everything I buy and sell to make sure I am actually making money. Tracking is key, It is very easy to assume you are making money because you are making sales. By knowing my P/L on the entire portfolio I can set up for a garage sale knowing what price I have to set to be make a profit. Most people at a garage sale are selling $100 shirts for $5 to recoup some value and get rid of inventory.

Most importantly, when I liquidate I buy Bitcoin.