So a few weeks back I found a link to a website that gave away pre-sale codes for concerts. The pre-sales codes allow you to get access to premium seats at the various concerts before the tickets go onsale to the general public. So I did an experiment to see if I could make money buying those tickets and then scalping them on stubhub.com. Here are my results:
I purchased tickets to 5 shows that I thought would sell out:
Eagles w/dixie chicks and keith urban
Kings of Leon
My total cash outlay for these tickets was $1040
My total inflow after StubHub fees was $1460
Net profit: $420
Time involved: 1-2 hours
Return on investment: 40%
I was successful in selling my tickets for every concert because I made sure they were very competitively priced. Most of these concerts don't take place till July and the tickets are already sold. I may have been able to get more out of them, but decided that it was more important to get my money back out of them versus demanding top dollar.
This business model seems scalable and I can completely understand why scalping is such a big business even if it's not for me.