With the launch of my latest ebook, GEO Arbitrage, I have been getting a lot of questions from readers asking my to explain exactly what geoarbitrage is.
Now I could easily say, ‘Download My Free eBook‘ because there is a section in it that explains the whole concept. But to make it easier for you, let me explain it here.
A Quick Economics Lesson
Now I am sure that you have already worked out that geoarbitrage is made up of two root words. ‘geo‘ and ‘arbitage‘. Now we all know that geo is location – but what exactly is arbitrage?
Arbitrage Is: According To Wikipedia (link)
the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
Successful stock market traders and professional gamblers use this technique to make large profits – and with geoarbitrage, everyday people can use arbitrage to work a lot smarter.
So What Is Geoarbitrage?
Well if geo means location, and arbitrage is taking advantage of the price difference between two or more markets, then geo arbitrage is simply:
the practice of taking advantage of a price difference between two or more geographical markets: striking a combination of matching deals that capitalize upon the imbalance.
A typical example of geoarbitrage is wages.
We all know that wages are different all around the world for the same jobs. So why not capitalize on this difference and hire staff from a cheaper country.
Now I know this isn’t possible in all industries – but why not take advantage of geoarbitrage in as many areas as you can!
But Isn’t Unethical?
I get this argument a lot when I tell people about how I utilize geoarbitrage to build my online business. For some reason people feel wrong people people as little as $2/hr (or less), because they are so used the the price of wages in the country that they live.
But the simple fact of the matter is, that you set your maximum price, but it is up to the market to decide if anyone will work for you. And in some countries $2/hr is a good wage.
A Local Example
Remember back to when you were a kid and your parents asked if you would mow the lawn for $10?
This is a perfect example of arbitrage!
The $10 is good money for you, and your parents are saving the extra $30-40 they would have had to pay a lawn mowing business. It is the exact same concept, but I don’t see anyone complaining about the ethics in this case.
Learn More About Geoarbitrage
If this sounds exciting (and it should), then you can download my ebook GEO Arbitrage – free of charge, and it will take you through the exact steps that you need to take to start out in geoarbitrage today!
