With the rise of online ticket resale platforms like StubHub and Vivid Seats, becoming a ticket reseller has never been easier. Reselling tickets can be an extremely lucrative side business that allows you to profit off your knowledge of the event industry. However, succeeding as a ticket reseller requires dedication, industry knowledge, flexibility, and most importantly, access to inventory.
What are the requirements to become a ticket reseller?
Here are the main requirements needed to start reselling tickets:
- Access to ticket inventory – This is the most essential requirement. Without ticket inventory, there is nothing to resell. Inventory can be obtained through season tickets, group orders, ticket presales, etc.
- Industry knowledge – Having in-depth knowledge of your niche (sporting events, concerts, theater, etc) allows you to forecast demand and price accordingly.
- Startup capital – You’ll need capital to purchase ticket inventory. Expect to invest at least $1,000 when starting out.
- Time commitment – Reselling tickets takes a significant time commitment to list, market, and ship tickets.
- Patience – This is not a get-rich quick scheme. You need patience to grow your reselling business over time.
You don’t need any special licensing or certification to become a ticket reseller. However, you will need to report your income and expenses on your taxes.
How do ticket resellers get inventory?
There are several key methods ticket resellers use to obtain inventory:
- Season tickets – Purchasing season tickets for sports teams or season ticket packages for theaters is a straightforward way to gain steady ticket inventory.
- Group orders – Ordering tickets in bulk for groups of 10+ people can provide substantial inventory for major events.
- Ticket presales – Taking advantage of presale opportunities like fan club presales, credit card presales etc. is crucial for high demand events.
- Ticket drops – Monitoring primary ticket sites for extra ticket releases leading up to events.
- Wholesale ticket sources – Establishing relationships with ticket brokers, promoters, or sponsors that have direct access to bulk event tickets.
Obtaining a consistent supply of in-demand ticket inventory is the hardest part of reselling tickets. Creative methods and persistence are required to gain inventory access.
How do ticket resellers sell their inventory?
Once ticket resellers have inventory, here are the main channels used to resell event tickets:
- Online ticket marketplaces – Sites like StubHub, Vivid Seats and Ticketmaster provide high visibility for listed tickets and handle all platform fees.
- Social media – Facebook groups and Craigslist provide ways to sell to local buyers.
- Your own website – Building your own dedicated ticket resale website allows you to build a brand and customer base.
- In-person sales – Reselling tickets outside of venues is an option, but may require additional permitting.
The vast majority of inventory will be sold online via established secondary ticket marketplaces. They provide the largest reach and handle all transaction processing. Avoid selling tickets via Instagram, Twitter or other social channels that ban ticket resales.
How does dynamic pricing work in ticket resales?
Dynamic pricing is adjusting the price of tickets in real-time based on current market demand and other factors. This allows ticket resellers to maximize profits on hot tickets. Here are some best practices:
- Monitor competitors’ prices for the same event
- Account for applicable fees so your price remains competitive
- Lower prices on unsold tickets as event approaches to cut losses
- For very high demand events, adjust prices upwards incrementally
- Use pricing analytics and AI tools offered by most platforms
Dynamic pricing requires constantly evaluating prices across multiple factors. Market value may change daily or even hourly as demand fluctuates. Being flexible and responding with data-driven decisions is key.
How much money do ticket resellers make?
Ticket reseller profits can vary widely based on:
- Access to high demand inventory
- Reselling volume and ticket quantities
- Efficiency of operations and overhead costs
- Markup pricing strategy and profit margins
Many resellers are secretive about specific financials. However, here are some example profit ranges:
- Casual resellers – $200 to $1000 per month
- Part-time resellers – $1000 to $3000 per month
- Full-time professional resellers – $3000+ per month
- Top powersellers on major platforms – $10,000+ per month
With the right inventory sources and business model, six figure ticket resale incomes are attainable but require significant time investments.
What fees do ticket resellers pay?
When reselling event tickets, plan for the following common fees:
- Listing fees – $3 to $20 per ticket listed
- Final value fees – 10% to 20% of ticket selling price
- Payment processing fees – Around 3% of transaction
- Shipping fees – If using platform shipping
- Income taxes – On all profits earned
Platform final value fees take the biggest cut of profits. Minimize fees wherever possible by selling on lower fee platforms, avoiding shipping costs, and controlling overhead expenses.
Is ticket resale a good business?
Ticket resale has several advantages as a side business:
- Low startup costs – Only an inventory budget is required.
- Work from home – No physical space or inventory needed.
- Flexibility – Part-time gig work with flexible schedule.
- Profitability – High ROI is attainable with the right inventory.
- Scalability – Operations can scale to meet growth.
However, there are also downsides to consider:
- High competition – Low barriers make for lots of resellers.
- Legality risks – Ensure compliance with all state laws.
- Time consumption – Sourcing and managing inventory is tough.
- No guarantees – Profits rely on acquiring hot tickets.
Overall, ticket resale can make an excellent side business with low risk. But consistently profiting long-term requires mastering operations.
What technology do professional ticket resellers use?
To scale and optimize their business, many professional resellers use tools like:
- Inventory management software – track ticket sources and listings.
- Price optimization tools – dynamically adjust prices.
- Order fulfillment automation – speed up selling and shipping.
- Accounting software – monitor profits and detect trends.
- Digital marketing tools – drive site traffic and sales.
- Ticket bots – automate ticket purchases (risky legality).
Leveraging technology allows larger-scale resellers to process high order volumes more efficiently. Focus on solutions that maximize productivity.
What skills make a good ticket reseller?
To succeed in ticket resales, cultivate these essential skills:
- Persuasion – Getting access to primary inventory requires charm and negotiation skills.
- Data analysis – Studying ticket marketplace trends to optimize pricing and sales.
- Technology proficiency – Utilizing sales platforms and productivity tools effectively.
- Customer service – Providing excellent service and quick responses to inquiries.
- Time management – Juggling sourcing, listing and order fulfillment efficiently.
Equally important are passion for live events, sales drive, resilience, optimism, and comfort taking risks.
Conclusion
Launching a successful ticket resale business takes a strategic approach. Focus on gaining ticket inventory access first before expanding operations. Always ensure compliance with all ticket resale laws and regulations. With dedicated time and effort, ticket reselling can become a lucrative entrepreneurial endeavor. Leverage available technology and online platforms so you can scale intelligently over time. With the right mix of inventory, industry knowledge, and customer service, meaningful profits await in the secondary ticket marketplace.