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How To Create Passive Income Making Websites With Fiverr Service Arbitrage

Jake Goss-Kuehn Entrepreneurship, Thoughts of a Mastermind 7 Comments

A few of us took some interest in the freelancing site Fiverr this week without having a plan down to use it and after my previous post of cold calling and Whitelisting arbitrage. In this post, I we’re going to go down to its most minimal actionable level. Brace yourselves, because this entire post is spoon-feeding you exactly what you need to to make passive income via Fiverr Service Arbitrage -a fancy phrase to mean paying someone else to work for you over a cheap freelancer website.

I made a lot of mistakes in Fiverr, whitelisting, outsourcing, and purchasing freelancing work. You’ll learn from my mistakes so you can save a year long struggle of getting things right.

fiverr-service-arbitrage

My Expenses for a Year by Fiverr Service Arbitrage

This post is split into four parts, each with their own segment. I ask that if you’ve gotten value from this post to say so below in the comments.

0. SCOPE OF THE WORK & REQUIREMENTS

Fiverr Service Arbitrage can be done can be completely hands off. Depending on your experience on WordPress and your hustle, it does not matter what your level of expertise is for this website builder. Depending on your skill set, you will be outsourcing work to developers for web design services which is completely scale-able. You can assemble a team of people who will spend a few hours to complete their part and profit the rest.

At the end of the day, you will be able to create a website with the core pages a basic site needs as you hand off the website to your client. Given everything you do is based off the work of an individual on Fiverr, charging $250 for the design will net you $200 in profit. If you offer a five-page website, the cost and revenue breakdown is as follows:

  • Spend $5 a week for local Craigslist ads in an effort to get a payment of $250 to start the project.
  • Next, you’ll spend 2-4 hours with the client collecting all the needed details for the site.
  • You will earn $65 off a BlueHost affiliate purchase when you tell your client to purchase a domain and hosting via BlueHost.
  • To Install WordPress, you can either use EasyEngine.io to rapidly start using it OR pay someone $20 to install WordPress and a good looking premium theme (2 hours of their time or 5 minutes via installing via EasyEngine.io)
  • For $30, you pay someone to fill out the rest of the core pages that you negotiated for the basic website:
    • A home page
    • An about us page
    • A contact us page
    • A product/service page
    • A privacy policy page
      • Any additional pages you can up-sell for $50 per page while charging $5 or $10 for a 1k word article on a website.

At this point, you will have your client’s website completed and will have paid $50 in labor. At this point you deliver the website back to the client. Once you deliver, you need to be front and center explaining what the website has. At this point, the client is eager to get started. Explanation might take an hour and an hour of ‘support’ such as answering questions such as, “What’s my password again?” and “Where’s the Admin Page?”

That is the scope and high level summary of what the rest of the post will touch on. Now, on to the details!

1. COPYWRITING AND CRAIGSLIST

Copywriting is the art of marketing aimed towards creating a sale through the written word. It is also a numbers game. I welcome you to post this SAME ad and see where that gets you – you can also purchase a virtual assistant who can post twice every day to your Craigslist account but you will find the same level of success by offering this to your friends and family off Facebook.

Contact EVERY single person, and show them this ad. You could press urgency and say that you’re looking to get a client this week; otherwise, at the end of the week,  you would bump it up to $500. I’ve had cases where someone was told that, beat around the bush, and paid an extra $250 as a “hesitation tax”.

craigslist-webdesign-service-arbitrage

Get a SEO Optimized Website made for $250 right here in Minneapolis!

WordPress websites made for you right here in Minneapolis!
  • Flat $250 fee for full website setup (if you order before 2017)
  • 24 hour turnaround time.
  • Will go through full setup with you, or do it for you.
  • Will show you how to edit the website.
  • Expert in setting up bootstrap templates
  • Free Consultation for copywriting or marketing ideas
  • Portfolio of my work: www.jakegosskuehn.com

Call/Text Jake to start: 952 454 6271

do NOT contact me with unsolicited services or offers

With your ad in hand, clients will contact you. Now, on to dealing with the client!

2. CONNECTING WITH THE CLIENT

Now, let’s say you actually got someone interested. It’s time to get them to agree to give you $250 of their hard earned money. This is a question-based methodology that helps cement your position as someone who can genuinely help them.

Here’s how the story goes. You get a trickle of inquiries once or twice a day if you’re really good or one a week if you’re only posting ads.

For each one you follow the following mindset: you establish yourself as a salesman and an expert before offering your solution and price. First, you need to establish credibility. To show you know the market, ask them STATUS questions where it’s a one word answer to qualify them and understand where they’re at.

Status Questions

Is getting more customers through placing your page on the first page of Google something that you are interested in?
Are you currently automating any marketing processes such as a sales funnel or email drip campaign?
Are you using a cheap Apache server host such as BlueHost, Go Daddy, or Host Gator? 
If I can show you a 4-5 ROI based on that marketing sheet, would I be welcomed to show you how that can happen?
Are you currently tracking conversions, if so whats the rate? Whats the average ticket? How many of them are repeat?

Uncover Their Issues

After you ask those, they know that you have some level of competency. The next step is to build rapport while uncovering ISSUES. These are longer form questions where you want them to talk a bit more.

What would you like to accomplish with our services? 
What’s the most significant business issue you currently face with regards to customer acquisition and branding?
What other challenges do you foresee?
To what extent is (getting consistent warm prospects through your website) important to you?
How do you promote through your existing customer base?

You want to keep them talking, and you want to ask this question at least once: “To What Extent Is X Important To You?” This forces them to dive deeper into the issues they may have.

Guide The Prospective Client to the Sale

Now, it’s the time to press them. We’re not telling them that they have a problem. The more forceful you are in your sales pitch will result in a higher defensive state from them. They need to come to the conclusion that they need your services. Let’s guide them towards that through IMPLICATION questions like these.

Have you ever calculated how much money every month your lack of a site is costing in terms of missed opportunities?
Is the core of your business repeat clients or new clients via word of mouth?
How important is getting at least a dozen business citations and reviews every month for your word of mouth?

It’s good to develop 3 implications per issue that they have. For the most part, they might just want a website. Others might want a web store. Maybe they just want to get this done as fast as possible. It might be good to press into each need they have for this by creating a need in their mind.

Close the Sale

After asking the questions above and determining the issues and wants of the prospective client, it’s time for the close. You should be able to just say, “to offer the solution I presented in the ad, I’m asking for $250 if you close by the end of the week.”

If your client is a local business, for the love of god, don’t sell a website for $250. Even though they say they might not be able to afford it, pick up top notch sales book that covers everything in this segment and after reading  you will be able to pitch your $250 services for $2,000 or $3,500.

Don’t think that people would pay that much for a website? This business paid $3,500 and is full of spelling errors. Here’s what you can close with if you want to close a business client. (If it’s a friend or family member will be OK if you just say the first line.)

“So, would it make sense for me to send you an invoice right now so we can [[fix your specific problem]] and build that site?”

“[[Prospect Name]], if this is what you need, we do this, would it make sense to schedule a time to get the appropriate people together in front of a piece of paper to map out your options, the impact on your business, and the associated costs?”
“If money was no object in your decision, what would you do to solve this problem?”
“In your mind, what would the ideal solution to this problem/issue look like?”

Now, once they are close, ask what they need. Most of the time they will give you basic requirements such as I would prefer a certain color or feel. Whatever it is, it is up to you to bring what they want to reality.

3. COMMANDING YOUR FORCES

Great job. You have a client! Now on to making the website through Fiverr Service Arbitrage.

If you have patience, this will be a true test of that. Going on Fiverr.com and finding any virtual assistant to copy and paste an ad can be done. Negotiating $5 for 5 minutes of work a day for a month is possible but international fiverr service arbitrageworkers are interesting to work wit and some can be great.

I’m not sharing my virtual assistant, but creating a request on the site with a description of each stage of your work will bring you 2o to 30 bids. Most of these are one sentences saying “BUY NOW FOR MANY RESULT FAST THANKS” or a variation of how happy I will be.

Thanks to the hiring info from one of our book review posts, you want to filter out people who have the hustle and speak English. The best way to filter through all the people who want to work for you is by adding this sentence to the the ad:

“Start your first sentence of your reply for this job request with Chocolate to be considered for the position”

Install WordPress Job

Anyone browsing in the ‘Install a WordPress’ job requests board already can do WordPress Installs. They’re just looking for bids. Now, those 20 job bids become 2 or even 3. Very easy to look at all and then close a sale.

You need to purchase a gig to Install WordPress. This is done by a technical person and will cost $10 to 20. Some people pirate their designs and don’t use the real deal. Make sure you ask if they have a licence for the theme. If so, then they will show you examples of what they can use. You can also purchase a theme for your client over at a website like themeforest or if you’re really into this you can get an annual license at elegantthemes.com for roughly $89 a year.

You then need to purchase a gig for someone fill out the WordPress Template. This is done by a technical content writer. The pages you have are already made, but you need to go through and finalize it. Telling your content writer of the specifics it just needs 5 pages is really all you really need. Excellently researched articles can be done at $30 per article, but you need someone proficient in English.

4. COMPLETING YOUR CLIENTS WORK

Now your gig is done and you got the site back. It looks great. Your client knows you’re working on it, and now that it’s done, spend some time to double check the website. Test everything. Make sure each button doesn’t go somewhere it’s not supposed to or that there isn’t an extra template page there with sample words left behind in the template.

Once that’s done, ping your client and schedule a time to chat for 15 minutes for a Q/A. This is where you could upsell extra services for $500/month if you had read this sales book. Give them the rundown of what you did. You made 5 pages, and they can login at the WordPress admin page. The default login for a WordPress site looks something like this (this is ours):

wordpress sign in

Login yourself as they would, and tell them how to make a new page. Explain that WordPress is everywhere and that they can easily find help on Google. This is where you can start to up-sell extra features.

You can fix their WordPress problems at 50$/hour. Most people think that’s too steep. If that’s the case, you can bring that $50 an hour down to $50 for gigs where it takes longer than 2 hours and you give them half off the first hour. You can even offer extra page creation for $50 per page. I’ve had people order 100 pages of content deliverable throughout a year where I outsourced every single article.

Conclusion for Using Fiverr Service Arbitrage

Well, there you have it – you now have the exact steps to start practicing Fiverr Service Arbitrage today. Create an free account on Fiverr right now and your first step will be to hire a Virtual Assistant to start posting the same ad above for you. It will cost you $5 or $10 for you to hire someone for a few minutes of their time for 30 days.

Leave a comment below if you think I presented value for you in this post.

Jake

Comments 7

  1. This is a great walk through with lots of resources. There are lots of detailed steps that a beginner entrepreneur can follow to start an new business with very low cost.

    What I like most is that you are actually sharing your own secrets with others that may become your competitor. I commend you for having that competitive spirit and not afraid to let your potential competitors know your methods. A confident entrepreneur is never afraid of a little competition.

    1. Post
      Author

      Hey Leo,

      I appreciate your words. I really recommend that you follow a few steps within this model and hire a virtual assistant at the very least. They are a god send.

      A whole lot of individual workers on Fiverr have immense value outside of a business application. I hire dietitians who can craft me meal plans and salesmen who can write pitches. It truely is an A1 site and I needed to share that with the community here.

  2. Interesting idea, Jake. My biggest concern doing this would be the quality of work outsourced. If I’m selling my services, I’m staking my reputation on the services rendered. If I get a bunch of lousy pages from Fiverr, I either have to suck it up and deliver a lousy project, or I have to go back and spend more on Fiverr.

    Also, while you could theoretically turn this into a good money-maker, I don’t know if I’d really consider it passive income. You mentioned that you spend about 2-4 hours with a client on selling your service. Presumably, not every conversation ends up being a sale. Also, you have time negotiating and looking for service on Fiverr. And finally, you have the support and training upon delivery- presumably another few hours. So all told, I could easily see spending ~10 hours for every $200 in profit. True, $20/hr on a side gig is nothing to sniff at, but not quite passive income either.

    1. Post
      Author

      Daniel,

      I’m actually quite pleased with the quality of the sites that I’ve made through this service. I think theres a common misconception that an overseas worker is immediately equated with a smelly rookie at a massive office with a windows 98 computer that they salvaged out of leftover parts from a western country.

      Well, sorrry for that visual but its nowhere true. After traveling internationally, I’ve met with people who can speak and write English than most Americans and because of the macroeconomics of their country, they are forced to accept relatively low salaries due to their position on the map even though if they were a citizen of the US they’d be making 50k instead of 5k a year.

      Just because they are willing to accept a lower rate for what you would do does not amount to terrible quality. However, there are lazy and untalented workers, quite the same that you would see over here. Just a simple conversation and that filter solves that problem completely.

      Oh yeah – if you don’t like your freelancers work you can always return it for a full refund OR have them revise it.

  3. Interesting way to do it. It reminds me of a old story I once heard of a guy outsourcing a collection of w2 jobs and essentially sitting back and administering for profit. I don’t know for a higher paid indv this one would be worth the time, but just starting out it’s a great plan.

  4. I love the concept of arbitrage and how you applied it here for the fiverr gig. Also awesome that you’ll get paid from Bluehost for using them. I’m not that comfortable creating websites…I did my a few years back and I probably forgot everything…plus it still looks very amateurish. I’ll have to brainstorm some other ideas of services that I can arbitrage…

  5. *An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

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