Have you noticed that every single year smartphone brands like Apple or Samsung are releasing a new expensive version of their products and there are millions of crazy fans desperate to buy their costly phones?
And what do these crazy fans do with their “old” phones? As you might answer, they sell of course.
Flipping phones is a great and easy way to earn money, and at the same time you are helping other people to get rid of their 1 or 2 years used expensive phones, you can start a very profitable business just by flipping phones for profits.
In this step-by-step article, I’ll teach how to start a simple but very profitable business flipping smartphones. Keep reading and you’ll get tips and advices to earn a great extra income or even make a living flipping phones.
But before explaining to you how to start making money flipping smartphones, let’s start with the “beginning” to understand why flipping mobile phones can be a great extra source of income.
Why do people sell their phones so frequently?
A phone is a useful device for countless tasks and nowadays it’s almost impossible to live without them. But for many people, buying that latest expensive iPhone is a status symbol and for this reason, many of those fans will sell their one year used phone to buy a new one.
Honestly, I think that buying a new and expensive smartphone so frequently is unnecessary and it’s a waste of money. Personally, I only buy a new smartphone every 3 or 4 years because I love to save money.
But here’s a good thing, if you want to take advantage of people with a poor mentality, you can start flipping smartphones for profits. Those people selling their 1 year used phones to buy the latest expensive iPhone are in a hurry to sell the used one for as fast as possible.
It means that they are willing to sell their phone worth $300 or more for a lower price compared with the usual average market price.
And here’s the big deal for you:
Many of these people have good smartphones that are worth $300 and you could easily buy it for $200 selling for a higher price later.
It means that you can easily make a profit of $100 without headaches.
How can you start flipping smartphones for profits?
Essentially you should follow the process below:
- Find great places to buy used phones
- Make research to discover the average price of the used phones
- Buy used phones for below the average market price
- Sell the phone for a higher price than you paid
- Repeat the process.
As you can see the process to make money flipping phones is very simple, basically, you just need to buy a phone for a lower price and later sell for more than what you paid.
But… for every step, there are some extra steps that you should be aware of. Below I’ll explain each of them and you’ll get the best tips and tricks to become a phone flipping entrepreneur.
#1. How to Find used Phones for Flipping?
This is obviously the first and one of the most important steps. If you want to make a real business flipping phones it’s essential that you know safe places where you can easily and quickly find great used phones to buy and resell.
As the first option that comes on your mind, probably is buying used phones from your friends, family or even relatives, but if you want to make a business from it, then buying phones from people you know is not a good idea, mainly because you’ll not have a high volume of offers to buy.
Fortunately, there are several great places where you can find a huge number of people selling their used smartphones. Below is a list with the best sites to buy used phones:
I don’t need to say much about this huge P2P marketplace. When people want to sell their used stuff, eBay is much probably the first place that will appear on their minds.
You can virtually find anything to buy there, and with absolutely no doubts, finding a big variety of used phones will be very easy.
I can say the same thing about Amazon… If you don’t know, Amazon is simply the biggest online store in the world, so it’s extremely popular, not only in the USA but also in Europe and in any other country.
People are also allowed to create an account and sell on Amazon their used stuff, including cellphones.
This is a very popular site in the USA where you can post any type of form. You can create a free ad to buy or sell phones there. The number of people using Craiglist will be lower compared to Amazon or eBay, but it’s still a great alternative to find and sell phones.
Swappa is a popular site to buy and sell used cellphones, tablets, laptops, and video games. It’s a great place both for sellers and buyers, because it provides some serious security measures, for example, if you are going to sell a cellphone you must provide a photo with the IMEI number (to check if the phone is stolen).
Many people haven’t noticed, but Facebook has its own marketplace where you can buy and sell any used item you want. And in a world where even your old grandma is using Facebook, it probably will be easy and fast to find great cellphone deals.
Above is a list of the best places to buy and resell cellphones, surely there are many other great places, but if you are starting I recommend that you only focus on these places.
For example, if you use only Amazon, eBay and Facebook Marketplace, you’ll find tons of great offers and it will be enough to make great profits.
And if you are asking where to resell them, you can use the exact same places above. The majority of people selling smartphones on these places are just trying to get rid of their used devices, they are not phone flipping entrepreneurs.
#2. Make research to discover the average market price
It’s very simple, if you want to make money flipping phones you must buy and resell for a higher price than wait you paid and I don’t need to give further explanation about this.
But to make it possible you’ll need to buy phones for the lowest price possible, to make a profitable business from it. You don’t want to invest time and energy to make a small $10 profit from selling a phone, right?
Then it’s crucial that you buy phones for a low price. And how can you buy cheap cellphones?
Making research on sites like eBay and Amazon. For example, if you are wanting to buy a one-year-old iPhone, you’ll need to make research and calculate the average price. If you find 10 people selling the same phone for $200 and another 10 people selling the exact model for $300 then you know that the average price is $250 and you should never pay more than this.
#3. Sell for a higher price than you paid
It’s extremely important to calculate how much money you can profit from it, before buying a used cellphone. As said above if you found a cellphone being sold for $200 and you know that the average market price is $300 then you know that you will easily make a profit of $100 and that this is a great deal.
Another example, you found a cell phone with the best possible price of $150, but you know that people will never pay more than $170 or $180, you should think twice if the profits of only $20-30 will be worth your time and investment.
Calculating the price you can pay and how much you can profit is a process that you should ALWAYS do before thinking of buying a used phone.
#4. Repeat the process – and multiply your earnings
If you got some experience and knowledge and you started seeing some profits, then you just need to repeat the process of buying more and more used phones.
If you are starting right now it’s not recommended that you invest more than $500 – $1,000 initially. But as soon as you start making nice profits and feel comfortable with the process, then it’s the perfect time to re-invest your earnings buying a large number of phones.
Certainly, if you trade a high volume of phones you can profit thousands per month, but it’s not recommended to put a lot of money in the beginning.
As you see there are four big important steps to create a real business with phone flipping, but there are extra cautions and details that you should pay attention:
Check if the phone has cracked screen and if it’s possible to fix (and worth)
Since Apple invented the first iPhone with large touch-screens, the first concern that all users have since that day is to protect the screen. It’s very easy to get distracted and let your expensive iPhone drop on the floor damaging the screen.
For this reason, it’s extremely important to take extra caution when you see a phone for flipping.
If the screen is broke, how much it will cost to fix and will be worth to buy, fix and resell later?
You can see countless tutorials on YouTube on how to “temporarily” fix your smartphone screen or how to completely replace it with a new screen.
Again if you decided to buy a phone with a cracked screen you’ll need to calculate the cost to buy the phone plus the price to fix it and for how much you can resell it later. If it will be profitable, ok, otherwise find a new phone to buy and resell.
One tip: it’s important that you learn how to fix and replace the screen without having to pay for this service. otherwise, it will not be profitable to resell a phone with a cracked screen.
Another tip: depending of the model, replacing the whole screen is not so expensive if you know the right place to buy and how to fix it by yourself. Also, as you can imagine, people selling phones with cracked screens in most cases will sell it for a very low price, because they believe that fixing the screen is so much expensive.
Extra tips to avoid headache when buying a Phone
There are certains risks involved when buying a used phone on sites like eBay or Facebook Marketplace, the seller (dishonest ones) can hide some problems or issues on the phones they are selling. It’s impossible to know if you are going to buy a phone with a battery that it’s on end of life or any other issues.
As a valuable tip you can try to buy used phones only from Amazon because they give great support and protection for buyers, For example, if you buy a used phone that is not working, they’ll easily refund you without asking too much information.
However, if you buy on other sites there are other risks, but if you follow the tips and advices below you can reduce the chance of having future problems buying used smartphones:
Check the serial number (also known as IMEI)
Every smartphone has it’s own serial number (popularly known as IMEI) and it’s extremely important to check if the phone you want to buy is stolen. Just ask the seller the serial number and you can check if the phone is ok at a site like CheckESN.
Check if the phone is locked or under a contract
Some phones are “locked” to determined phone services. As a phone flipping entrepreneur, you’ll only buy unlocked phones, otherwise, it can be harder to resell locked phones.
Ask the seller if the phone has certain problems
It’s obvious that the seller can easily lie to you, however, the dishonest sellers have a short life on sites like eBay or Amazon. If you plan to buy phones on these sites, you can easily find honest sellers reading their reviews. Top and trusted sellers will have over 90% of positive reviews.
Use a safe payment method to buy and sell (Paypal for example)
Using bank transfers is the worst way to pay for a phone or any other stuff, pay using this method and if you have any problem with a dishonest seller you can say goodbye to your money.
But it does happen if you use a trusted payment processor like Paypal because you can easily receive a refund if you have an unsolved problem.
Is this a good business to invest time and money?
Every business will have its advantages and disadvantages and making business by flipping phones is not different.
As said previously, you need to be careful when buying the phones to resell later and there are other extremely important details like checking if the phone you want to buy is stolen and other possible issues.
But flipping phones for profit has many more advantages than disadvantages, just trying to think for one minute the importance that smartphones have to society nowadays?
Over 70% of websites are accessed through mobile phones and if you go on any public space you can see how much people are obsessed with their smartphones.
And with the advance of technology, smartphones have multiple resources; seems that making calls is just the most basic function, and not the main one. You can browse the internet, plays games with advanced graphics and so on.
Also, consider the fact that most people don’t care about losing some money by selling their phones for a lower market price if they want to buy a new phone fast.
Thanks to Apple we have advanced smartphones with big screens and millions of fans investing (or wasting) money on expensive phones just to sell it 1 or 2 years later for a low price.
For the reasons above you can realize that flipping phones is not a business that will die tomorrow.
Certainly, you’ll not become rich overnight with phone flipping, but it’s totally possible to earn a few thousand dollars per month if you are willing to invest time and money (initially).
How much money can you earn with phone flipping?
As you can imagine, there’s no definitive answer, you can make a profit of only a few hundred dollars per month if you resell just a few phones per month or a few thousand if you resell countless smartphones per month.
For example, if you bought and resell 30 phones per month with a profit of $70 for every device, then you’ll make $2,100 in a month, but try to imagine if you bought and resell 50 or even 100 phones with a higher profit margin?
It will all depend on your efforts and ability to make a high profit per sale, but we can easily conclude that phone flipping is a profitable business model.