Is the RSGP trade even profitable for a newcomer anymore?

Just wondering can someone with nothing but say 50 bucks make some decent money from RSGP anymore or is the business already full from people who got in early?

 

$50 is a tight budget, you would at least need a few hundred to get a big enough stock for swapping and selling.

 

You'd probably break even or lose a little til you got established with just 50 bucks.

 

Business is full of people already established. However, with 50 bucks, you could start a business. Myself, I started with almost nothing. Of course you do bigger profits when you have big amount but youll start small and you will see your profit going up!

 

So if I could get more can you still actually break into the RSGP business still? I mean it looks like the market is totally saturated and people are saying run escape is dying.

 

RuneScape (Old School) is growing daily. EoC is maintaining their playerbase, and has actually pulled in an average of and additional 10k players online at any given time.

RS is definitely not dying. If anything, it's reviving.

Anyone with the right amount of money could jump into a market environment.

 

I would advise to start on EOC, because with 50 bucks you can buy more than 100M, which gives you some margin. However, in 07 you would buy little more than 10M and chances are someone would contact you and want to buy more than you have in stock in one go

 

Economically speaking, the market (On Sythe) has a similar structure to that of an Oligopoly. There are several very large 'firms' who own the majority of the market share. Barriers to entry are relatively high, as if you wanted to compete with them a reasonable level of investment would be required. Realistically, it is possible to join the market and compete, however to get the trade that the larger sellers it would require a lot of investment, something that you may or may not be able to recuperate depending how successful you are. That's the risk here, you won't have a guarantee that you will successfully earn your money back.

The large firms have the majority of the trade and are therefore the price makers. Everyone else (the smaller 'firms') are the price takers and they must accept the going rates set by the larger firms and compete with them. Technically, the larger sellers could force many of the smaller sellers out of business. If one seller dropped their prices to beat off competition (possibly at a loss), competitors would likely follow and the smaller firms will be unable to compete. Normally this is collusion (all the large firms agreeing to do this to beat off any new up coming competition), which is strictly speaking illegal but could obviously happen in a virtual unregulated market such as this.

All in all, I wouldn't advise you attempting to compete unless you're willing to continue investing as you grow. Sure, it looks great to see the income the top dogs get, however it will take you a long long time and the likelihood of you achieving this is very slim. There is too much competition and really sellers don't have a unique selling point which could give you an advantage of any sorts as everyone is selling identical products.

 

Are any of the larger sellers here getting the gold directly by botting themselves or just buying it off people who do?

 

I don't think that they try to earn from other methods, a lot of customers, seller make huge profit from buying/selling, there are main ways how they make some money.

 

It's incredibly hard to successfully start a RS gold buying / selling business without a website. While there are certain individuals who are successful without one - it certainly inhibits your ability to accept PayPal while avoiding chargebacks and claims. While you may utilize PlayerAuctions and other uncommon payment methods initially, you are still missing the vast majority of customers who wish to use PayPal.

You could probably start a gold business with approximately $500-$1000 initial investment which would mainly involve getting a website created, maybe a donation rank, with a bit left over for your first stock purchase. Of course your margins will need to be slim to compete with bigger sellers, but there's certainly profit to be made.

 

I think this everyday, is it worth my time and money establishing something to penetrate the market, for me the main worry seems to be chargebacks

 

Someone's had an econ class or two... good to have more people like you here lol. tl;dr, there's profit to be made, but probably not much with only $50.

 

Very well put, alot of it is who you know, there are people who make bank just selling to the big names, then the big names throw their extra .50-$1.00 on top it. if you stay consistent and run an organized business model you will profit, its just a matter of repeating the model long enough to get affiliated and build up a customer base.

 

Is that how much you started with?

 

Arcus is getting a hilarious amount of sales due to the fact that sythe is using do-follow links with their ads. This is making arcus rank really high for search terms like: rs gold.
Unless he's hiding links the majority of his links are form sythe, osbot, and powerbot

That being said, a website is NOT a sound investment unless you have the funds to do SEO, otherwise you will never see one organic sale.

Proof:


if sythe no-follows his links to arcus's site I would bet you ANYTHING that his sales would drop significantly.

 

50 dollars would be hard to get u going and the market is very competitive alr with many sellers that are already known. However anything is possible and the bigger ur capital the greater the returns

 

Is there anyone who can give me more advice how to handle paypal orders. I got chargedback recently and I dont want this anymore, any suggestions?

 

1) You can get a great amount of sales on forums with a website, me and every other trader on Sythe have made a significant amount of money from Sythe and/or other forums. The only difference between traders who are successful and those who are not is the amount of time spent and the determination to do whatever it takes to succeed. I've worked well over 60 hours a week consistently whilst achieving the reputation I currently have and even now in the present.

2) Those who say that the GP market is too saturated / a website is a waste of money / don't invest becuase you will not recuperate costs are the same people who will not make money. There are traders who entered the game in 2013 / 2014 who are primarily operating on Sythe / forums who are making decent money. While the GP market may be competitive, almost every small business has many competitors, but that doesn't stop a new one from entering and succeeding with time. While it may be difficult for a newbie to instantly see amazing profits, it is certainly possible and there's no reason why anyone couldn't with my previously mentioned general requirements. I can guarantee you myself, R2, won_gold, and the other major shops are successful predominantly because of the amount of work we've put in towards establishing our shops over the years.

3) Businesses that rely solely on SEO / organic sales are prone to failure. Google could make an algorithm change at any time bringing your website to the 2nd, 3rd, 10th page. It's a far stretch from the truth to say that I didn't make a significant amount of money / good sales before I established a presence on Google.

Google "rs gold" and see if any of the other Sythe sponsors' websites appear. I believe most if not all of them do not. That goes to show the value of a single do-follow link from Sythe is limited in itself. Without getting into the specific costs involved in sponsoring Sythe through a display ad, it's very expensive and I believe a "do-follow" link from those ads is perfectly reasonable.


"What you pay attention to grows." - one of the most accurate quotes I've always lived by. Regardless if it's your business (RS or other), health, school, family / relationships, etc.

Yes, I entered the GP business with around $800 to my name.

 

I agree with arcus. I started with around $500 ish in 2013 and i was making profit, but when i finally got my website my profit was 5 times higher then before.

OP: with $50 you shouldnt invest in the market. Just go do stuff on RS to make some money (nat rcing for example) and when you have a few hundred start entering the market.