One of the cool things about the first dot com bubble was the "ebay millionaire". These were people who built businesses around selling goods at auction on ebay.  There has been much written and said about the methods of these people and certainly it was a big attraction to people selling on ebay.  I had an interesting plane ride home today where I met someone and discovered todays equivalent. I call it the StubHub millionaire. It  is a testament to American ingenuity and shows that given the tools, people will find a way to exploit and make money.

Up until fairly recently you bought tickets to sporting events and other entertainment from a box office or ticket agent such as ticketron.  The "after market" in ticket sales or scalping as it was called in NY was often times illegal.  There were though some legal ticket brokers that you could buy tickets from. Now with the advent of StubHub and similar type of ticket reselling outlets on the web though, the infrastructure is in place for anyone to sell tickets on line.  You would think that most of these people selling tickets were people who had either extra tickets to an event or perhaps a season ticket holder looking to unload some tickets to help defray the costs. Not the case!

There is a now a whole class of businessman who buys season tickets to multiple teams, sports and cities and than uses outlets like StubHub and others to sell these tickets.  The guy I spoke to today had season tickets to 6 different NFL teams, 3 major league baseball teams and multiple basketball and hockey teams.  Many of his tickets are sold months and weeks before the event. If any are left within 14 days of the event he puts them on ebay.  His average mark up is about 40 to 50% of face value, but by buying season tickets he pays below face, so his actual margin is closer to 60 to 70%. He keeps a few tickets for him and his family to go to a few games a year. 

This started as a hobby for him with Yankee season tickets, but he has done an analysis and compared to what he would make investing that money in the market, he has come out way, way ahead.  He thinks that on a 12,500 investment, he makes about 40k!  That is not bad.  This year when all is said and done he will make six figure income from the resale of tickets he bought.  Think about it, no office or anything.  Just list your tickets and let people buy them.  Take some of the money and buy more tickets.

So what the heck am I doing trying to show people why it is important that they put good security in place on their computers?  There has got to be a better way.