When you go shark fishing, you first catch small fish to use for bait, and then the bait pulls in that Great White Shark.
Let’s face it; buying tickets online and reselling them for a profit can be risky. But that doesn’t scare you; it shouldn’t if you know how to evaluate risk.
The definition of risk is as follows: A risk is something that exposes (someone or something valued) to danger, harm, or loss. But not all risk is equal.
There is a clear separation from low risk and high-risk situations. The reason one enters a risky situation is for a reward. There are high risk tickets and low risk tickets. Small venues, less popular artists and smaller cities are generally low risk tickets. With that low risk, the general trend is that you have a lower reward. The key is compounding these small rewards to a much larger benefit. Multiple low risks have a greater chance of yielding small rewards that add up over time to compound to generally high rewards in shorter periods of time. With only purchasing high risk and reward tickets, just one loss can be detrimental to not only ticket purchasing funds but motivation. It also may take much longer to make a profit on the tickets you bought. Low risk tickets tend to have shows that are closer to the purchasing date. While on a high risk, 3-4 months can pass before the ticket is resold, furthering the impact of a potential monetary loss.
Low risk tickets are also more common than a high risk, big show. If you think in the situation of 5 low risk tickets can be bought for every 1 big risk ticket, the low risk tickets tend to be more profitable in the long run. Because the high chance of a detrimental loss looms over that one ticket.
A general formula to consider:
Low Risk + Low Reward + Frequency= Compounding ticket profits made before the next big risk show
High Risk + High Reward – Time – Occasional loss due to high risk= Scenario specific profit
However, it is important to state that we are not discouraging high risk ticket sales. These can really pay off and make you a lot of cash. Do it! But we are stressing the principle of mixing low risk with high risk to ensure a system of checks and balances of risks involved. This strategy is especially beneficial for those just starting TicketFlipping.