This transcript was generated from the episode audio and may contain minor errors.
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A listener and her teenager have been selling on Facebook Marketplace, and they've been getting off to a good start. I've mentioned Facebook Marketplace before. It's a place where so many people go to buy and sell, and you can do it without any experience, without ever being a side hustler before, without ever having any kind of business. It's a great way to kind of jump in and get started. And they've actually taken it to the next level here by not just selling their own stuff, but reselling for others.
They're wondering about some best practices for this, 'cause it's a little bit different than just selling stuff that you already own. This is basically selling stuff on consignment for other people. So they're wondering like, what should she charge? Should she charge a percentage, a fixed fee, or some combination? And what else might be good to know in this situation?
So as I said, a very easy hustle that anybody can jump into, even if you're doing other stuff, doesn't have to be your main thing or even something you think a great deal about, but it can be a great way to make some extra money. So when you're reselling for others, do you charge a flat fee or percentage? And perhaps a couple of other tips as well. That's what I'm gonna give you in this episode. Stay tuned for the detailed question and my answer.
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Hi, Chris. This is Bettina Smoser from the Gettysburg area of Pennsylvania. My teenage son and I already have a side hustle as resellers on Facebook Marketplace. It's actually going pretty well. He sells shoes and I mostly sell books and clothing.
It's also a bonus gift to spend time together. I really enjoy that. Interestingly, when people hear that I resell things online, I sometimes get asked about selling things for other people. That sounds intriguing to me. I actually did sell a large lot of longer burger baskets as a favor for an elderly couple who was downsizing.
But while I was glad to do it, I felt a lot more pressure when I was selling for someone else and it was a lot less fun. However, I haven't ruled the idea out. So my question is, if I were to sell an assignment, what percentage should I charge or should I set a flat selling fee? Thanks for your inspiration. I've been encouraged by your stories of reselling in your early days.
I can't wait to hear your answer. [Music]
Hey, Bettina, thank you for calling in. And what a fun venture you are on. Here is my advice. I think you should definitely charge a percentage.
That is the standard in this world. It also gives you an incentive. You want to sell something for a greater amount of money. Like you want to do a good job for the owner. And that way, if the owner doesn't like the deal or feels like the percentage is too high, well, they can always do it themselves.
So you want a percentage, but you can also have a minimum because you're not going to profit very much by just selling a few items. If you sell something for $100, a 20% commission, 20 bucks might not be worth the effort involved for everything that's required. But if you're selling $1,000 worth of those same items, then that 20% could very much be worth it, right? Especially as you get better and as you systemize the process, as you create some workflows and standard operating procedures and all those fun things. So nothing wrong with a minimum, but I think in general, your pricing model is as a percentage.
And then my other note is if selling items for others feels more pressuring, maybe just setting some gentle expectations with those people could be helpful. So if you think, those baskets, let's kind of focus on that, those baskets, if you think they will sell somewhere in the range of 80 to $120, give them the low end of the estimate and then try to sell it for a little bit higher. That way you're kind of under promising and over delivering. I almost said it the opposite way, but that would not be good. You want to under promise and over deliver.
And that way, like I said, if they sell for more, it's great news for everyone. Anyway, that's the point. Sell on a commission-based percentage. It's a very easy business model. Anybody can do it.
Listeners, I hope some of you will take action this year and let me know, of course. If you have a question or comment, sidehustleschool.com you can also download or stream the entire archives of the show 3,300 plus episodes there. Everything is free. My name is Chris Guillebeau. You're listening to "Side Hustle School." [Music]
From the "Onward Project."
