The shoe/sneaker resale market is very lucrative, and with exclusive sneakers releasing frequently, insiders estimate that this secondary market is currently valued at around $6bn. While only 4% of shoes and sneakers are purchased upon release for resale, the market benefits from hustlers and entrepreneurs looking to pounce on the huge margins to be made.
Limited edition shoes
Certain limited-issue shoes are released for sale by a major shoe company, usually Nike or Adidas. They can be associated with an athlete, hip-hop star pr even a movie. Three examples of the Hip-Hop/sneaker collaboration are the Nike Air Yeezy 2 “Red October”, Adidas Yeezy Boost 350 “Turtledove” and Air Jordan 1 x Off-White “Chicago”.
Most shoes would actually fetch less than retail at resell. However, the above shoes were all released in limited editions retailing at $190-$240, with the resale value averaged between $1,695–$6,118, per Stock X.
Essentially hype and rarity are what makes these shoes ‘limited edition’.
If a shoe is hyped but not rare, anyone can get their hands on a pair for retail and you won’t make any money. If a shoe is rare but not hyped, nobody can get their hands on a pair, but nobody cares — and you won’t make any money. So if you get your hands on shoes that are both full of hype and rare – you’re in the sweet spot.
You can buy certain sneakers at retail price and sell them on a secondary market for at least 2-3 times the retail price.
Why are they worth so much?
19-year old Brandon Webb has made a living by taking advantage of the high-ticket sneaker reseller market. He is the founder of Hypluxe, a members-only community that teaches sales secrets of the massive secondary market for limited-edition sneakers.
He explains to Entrepreneur.com – “It all comes down to supply and demand. Companies like Nike and Adidas release exclusive sneakers in collaboration with celebrities and artists like Virgil Abloh and Kanye West, as well as updated versions of classic models. Resellers know these sneakers will sell out, and so does everyone who wants to wear them. The combination of limited availability and hype drives prices through the roof on the secondary market.”
“Sneaker blogs now make lists of the ‘most popular upcoming sneakers’ and update them weekly. They even tell you exactly what websites they’ll be releasing on. In short, if there is hype and exclusivity, there’s money to be made.”
To find out which shoes are hot, trending or upcoming, check out Hyperbeast and High Snobiety. Both are fashion sites that extensively cover information and news about the culture for sneaker-lovers of all levels.
Those in-demand shoes cannot simply be bought from your local retailer. To get hold of them, you can try raffles that are set up by retailers or try camping outside for a first-come first-serve option.
The average shoe reseller will use computer programs called bots to try to get their hands on sneakers. Bots virtually automate everything, attempting to rapidly check out multiple pairs from websites before they sell out, much faster than any human could. As you’d expect, bots available to the public are inferior to those used privately.
However, the people making the most money from shoe reselling have connections with investors, elite hackers, and industry insiders, as well as access to private software that essentially gives them a monopoly over the supply.
Expert resellers like Brandon Webb have built up insider connections that provide him with exact stock numbers. This helps him understand just how limited the shoe stock is. As a result he knows what’s going to be profitable far before they’re released.
To truly benefit from reselling shoes, you need to purchase products that are sold on the cheap but have lasting value in the long run. One way of doing so is by buying the sneaker on release day at retail prices, which is where they are at their most affordable
However, new pairs of shoes come far and few in between. To make money in reselling shoes, you need to find pairs sold under reseller price so you can profit off them.
How much and where to sell?
StockX is a site that shows how much the shoes cost over a 12-month period. Just like a stock market index graph, you will see the movement of price over time, thus giving you information on which shoes to acquire for reselling. It also serves as a consignment store where people can bid or ask for shoes for resale. If you have a pair of sneakers you want to sell, you could do so through the site.
StockX bridges the gap between buyers and sellers by allowing buyers to bid on available limited edition shoes. They have an authentication process which takes the guesswork out of trying to ensure shoes are not counterfeit, which is a glaring issue in the sneaker industry.
This is by far the safest and often the cheapest way to buy sneakers, and the company has only been growing in recent years. Stock X makes money off of both the buyer and seller with the commission fees, and both parties are entitled to lower fees if they buy/sell more. Once you have the information you need, it’s time to search for those shoes online.
The marketplace for reselling sneakers was once fragmented, but today there are dedicated marketplaces for sneakers, such as StockX, Hypremium, and GOAT, where all trading can be conducted through an app. These platforms provide a digital-native audience with a more formalized process and a plethora of choice.
Being such a cool and trendy niche, sneaker selling has allowed the tech-savvy youth to channel their creative juices and use their resources into doing something productive. This is a market that anyone can tap into. Of course, as with anything it has to be the right product on the right platform in order to create a lucrative business.
If you’d like to learn more about online marketing, or if sneaker reselling isn’t your thing but you’d like to know how to create, brand and sell other products online – then click here. I’ll send you a series of free video workshops run by my mentor who presents how you can create an online business and live the lifestyle you seek.
I wanted to share some familiar excuses for why people don’t take the plunge and start something new. In this case – an online business. I would know as most of these applied to me.
The lack of time to commit to building a business is the most common excuse based on surveys and polls. Time is a precious commodity, and we generally try to fill the free time we do have with enjoyable, rather than productive things. The desire is definitely there among young people but time is often cited as the excuse.
Don’t forget, each day on earth represents a greater portion of our time left to live compared to the previous day. Scary right?
With that in mind, surely you’ll want to spend less time commuting and working unsatisfactory jobs and more time with family, passions and growth?
This is why having an online presence is the best thing you can do considering so much interaction and commerce is done through social media. It is astonishing that with people and networks at our finger tips, we’re not taking advantage as we can and should.
- Make time. if you want something badly enough you’ll find a way.
- No time at this present moment, and too many commitments? Then consider an affiliate business model where you promote and sell other peoples’ products/services for a commission. This requires less time and can help build a solid side income.
“No technical skills”
Three months ago i didn’t know how to build a website or set up email systems, write blogs or create custom graphics. There are so many resources and its so easy these days. Especially when it can be just a case of point and click, and drag and drop interfaces -which means no HTML code learning required!
- Digital Business Lounge (for integrated hosting, website building, email, landing page) – all in one place!
- Outsource all the technical parts to your business using Fiverr.
“Don’t truly believe I can do it”
I am part of a community that consists of all types of people with varying skills and beliefs. From truck drivers through to big shot lawyers. They all have one thing in common – they want to change their life. Whether that’s more money, time, fulfilment. there is an underlying ‘why’, and that’s what you have to discover for yourself.
And yes, they all had initial doubts as I did, but the first step is always the hardest.
- Everyone starts somewhere, but to embark on an entrepreneurial journey, you need to sort out your mindset. Mindset, confidence and being clear on your ‘why’ is discussed on regular ‘WakeUp’ calls within the SFM (Six Figure Mentors) community. Check it out!
- Get inspired and learn from mentors through podcasts, books and motivational videos. I particular love listening to Jay Shetty’s and Satori Prime’s podcasts.
- Daily visualisation practice so that eventually your future successful self becomes ingrained in your sub-conscious.
“I don’t have a product or service to sell”
This is something I struggled with initially. I always loved the idea of an internet business but just didn’t have a product or service. What to do?
- AFFILIATE MARKETING – As mentioned above, affiliate marketing is a great online business model for people who are looking to dip their toes into online marketing and start making money. Affiliate marketing is essentially recommending other peoples’ products and services that are aligned to your content, and that you have used before. SFM is a platform that not only teach you how to become an effective affiliate marketer, but also allow you to earn high-ticket affiliate commissions ranging in the $000s.
- E-COMMERCE – Amazon is the e-commerce platform of choice for millions across the globe. If you don’t have your own product, no problem. It is so easy these days to find wholesalers that produce t-shirts, camera bags, bikes, etc, and have them redesigned and re-branded according to your taste. Additionally, you don’t even need to hold stock in your garage or bedroom. With Amazon drop-shipping, the product can be collected from the wholesaler’s factory and dropped directly to the customer. The SFM teaches individuals this Amazon drop-shipping process- step by step.
- YOU are the product. as you have so much to share that certain people will resonate with you. Give and share what you know/love about a particular topic, area or product and before you know it, you will realise rewards from the value you give your customers and readers/viewers.
“I want to see examples of people like me make it first”
People fear the unknown and that’s entirely natural. Therefore it is completely understandable that whenever starting something new, it helps us to see evidence of success in that area thus giving us something to model on.
Before I started my journey with the SFM, I was intrigued by claims that people like me – in respective jobs earning comfortable salaries, managed to replace their salary with impressive profits from their online business. Conversely, there were also individuals in the SFM community that had nothing like the academic education or training that I had yet were commanding huge respect from their successes.
Click here to read real testimonials from real people, get inspired and change your life!
I wanted to shine some insight into the excuses that most people (yourself included?) say to themselves to avoid starting an online business. And with forecasted online sales of $25 trillion by 2025, surely you’d want to build your internet business and claim a tiny chuck of that??
After working in the corporate finance sector for over 13 years, I’ve had some realizations when it comes to money and wealth. An employee, even a fairy well-paid employee may struggle to truly create the life that he or she desires from their employment alone. You see, I define financial wealth as having the capacity to acquire those dream assets, like the house or the car or the holiday home abroad with just cash and no loans or mortgage.
When I was a kid, I always viewed owning the £1m house as being the benchmark for being truly wealthy. Of course, with inflation a £1m house today may be worth £5m in the future – and in that same future, £1m doesn’t buy you alot. But essentially everybody’s dream home and desires are different. I just use a home as an example because it is almost always the biggest ticket item people want to purchase.
And I specifically selected the salaries of a UK and US Investment Banker as they are the highest paid professions in Finance, and I want to illustrate that despite their earnings and status – it’s harder to acquire that £1m (or $1.5m) house with CASH ONLY – no mortgage.
I’ve put together 2 tables – one for the UK Banker, and one for the US Banker. The tables show how with age, the banker’s savings accumlate alongside the change in house prices.
This is only a model, and I have inserted my assumptions below each table – the key being that both bankers save away 20% of their annual salary;
UK Investment Banker financial path:
US Investment Banker financial path:
From the UK table, it would take the employee (starting at a £40k salary) 34 years before they have acquired enough savings (£3.49m) before they can afford that same £1m house – which is now valued at £3.316m after 34 years.
From the US table, it would take the employee (starting at a $60k salary) 42 years before they have acquired enough savings (£13.12m) before they can afford that same $1.5m house – which is now valued at £12.958m after 42 years.
This line graph summarizes how the accumulated savings largely lag the house value over time;
You may look at my total compensation figures and find them to be conservative. But you gotta bear in mind the economic cycles, burnout and structural changes to the industry. Again, this is purely a model with my own researched assumptions. Even, the savings rate of 20% is an average. Some people save almost nothing and purely rely on living pay check to pay check.
Of course, after 34 or 42 years, and with that kind of savings, the banker may choose to buy a property elsewhere where there is more value for money or even downsize. But, the point is that, upon seeing their dream house (valued at £1m or $1.5m) when the budding banker was 21, it would take them a helluva time before they can pay for it outright in cash.
Sure, the banker can still take out a mortgage to make up the shortfall at any time during his career to buy the dream house. But it would just mean continuing to work for another 10 or 15 year to meet the mortgage payments.
The above data illustrates that an employee (with no other investments or income sources), will struggle to purchase their dream asset if they were paying for it in cash. However, being an Entrepreneur and owning several businesses and sources of income can help you achieve this goal.
Sure, the business owner may not pay himself much in comparison to the earnings of a top ranking Investment Banker, however the benefits of having multiple sources of income are as follows;
- Not subject to economic downturns as much as an employee, who may lose their job. The Entrepreneur can rely on other sources of income if one or two take a hit;
- Not working for anyone else. Be your own boss. As a result, take as much time as you need off;
- As a business owner, you have controlling ownership in your company which leads to my next defining point…
- More chance of huge cashflow or liquidity events. What this means is that one of your businesses could eventually be sold or partially sold for seven-figures if it’s a successful venture and has been creating huge value for customers. Alternatively, a minority stake in your overall portfolio company can be sold to investors. These events create huge windfalls and allow the Entrepreneur to purchase those dream assets much earlier. And they don’t have to one-offs either.
- Another benefit of entrepreneurship is the incredible satisfaction you gain from creating something out of nothing. Having the freedom to do whatever you want provides for tremendous happiness as well.
I highly recommend that everyone should start their own business, and in particular – an internet business to leverage the lucrative digital economy. There are so many ways to make money online (refer to my post to ‘4 Realistic Ways To Make Money Online‘) as well as;
- Blogging (written and video)
- Online training courses
- Downloadable templates
- Video subscription
You definitely need to start by creating your own website, create a blog and build your brand and potentially access over three billion people online. And you can do this so easily and cheaply these days.
If you would like to make the first step to creating your online business, and learn how to market effectively online, click here to access a free video series workshop that will really open your eyes to the possibilities for making money. You will wonder why you didn’t start this process earlier! In fact, that’s something I always ask myself, especially having gone through the traditional route of academics and employment.
Take the first step to your freedom friend.
Best of luck