An Idea of mine.

I had a thought today on how to become a dealer on a very small budget.

I thought of getting some business cards made up to refer people to my site, offering a appraisal service for $19.95.

I know some people will send in a bunch, and some will send in a little. I figure the time and money it takes to appraise just a handful of coins will balance out with a larger appraisal.

This would generate "leads", or clients.

Of course a seller would have to pay for shipping and insurance both ways, but it would be worth it if they don't have a coin shop in their area.

Then once I get...say $500 built up from appraisals, start putting "offers" in with the appraisal. If they have a coin I appraised for $90 (price from numismedia FMV) making an offer for say $70, which of course they can reject or accept.

Then any money made from the sales, can be used to purchase more coins.

Then with a dual income source (appraisals + coin profits) I could end up becoming a "part time dealer".

I'm giving this some serious thought, but would like to hear opinions from others

 

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I don't see it working for myriad reasons.

 

Most people would want an appraiser with some kind of credentials and for that person to be established in the coin industry for a few years . Also if people are going to send you a good amount of coins they'd probably want someone bonded so they know they can be trusted . I like that you are thinking about ways to earn money honestly , but I think getting a degree in something in this point of your life is most important . Good luck with your endeavors Tim .

 

I am still going to college next year.

I don't ever want to be a full time coin dealer. Many of the dealers I talked to at the show don't do it for a living, they have other jobs, and sell coins to supplement their incomes. Two of the dealers I spoke to are teachers, one is in construction, and the other is a tax advisor.

There were not "armchair" dealers either. All 4 of them had inventory in excess of $20,000

I've never seen "bonded" on a coin dealer's site, but maybe they don't mention it?

 

Even if there is no need to get bonded , I'm sure these people started small maybe even selling on a forum like this one . It would be a good idea to pick their brains every chance you get to learn how they got started . Go to small shows and ask them .

 

I would never send my coins off to someone I didn't know. Good luck.

 

I asked a few, they all had capital from loans and their income.

Some people started from nothing. I used to be friends with a computer repair guy (who has since passed), who always told me he started a shop with a table, a chair, a coffee pot, and a #2 phillips screwdriver.

I don't believe in "it takes money to make money". Read about the history of apple computers, they started their company from scratch with little to no money.

 

True, but many people send in stuff to those "cash4gold" ads on TV, they might send their gold in and never see it again.

I always have held a firm belief in "most people are honest".

 

You could just sell coins and make some money on the side but you need to tell customers that they should to make a decision on the grade of the coin as you are not a grader unless the coin is already professionaly graded.

 

Right, but that's a simple "I send in my gold, I get money" type thing. Instant cash, which people like
What you are offering is "you send me your coins, I tell you how much they're worth". The two are definitely different.

And if you want people to take you seriously when you refer them to your website, you'll definitely need to make so,e changes to its layout...make it look more professional.

Either way, best of luck, Tim.

 

The site you may be thinking of is not the "main site". The main site is currently being built behind the scenes. I own 5 domain names.

 

Why would anyone pay you for a service that in the end has no impact on the true grade of my coin.
When and if i send it to a gradeing company to have it slabed will you send me a paper saying graded by Tim and what if any impact should i get in return from the company that will charge me again for doing what you have already done.
I know this is how it works in Washington but this isnt congress.

 

You're right that most people are good , but most people who will be sending coins to be appraised would want to know your credentials . Can you spot a cleaned coin , can you grade , what kind of training have you had . With most middle to large cities having at least one coin shop , why would they use your service . These are questions you have to ask yourself . Would you send yourself $1000-5000 in coins . Ask these questions to yourself and answer honestly .

 

Tim , I've read a lot of your threads , but I hardly ever see you in other peoples threads . rlms'cents has a guess the grade for Lincoln cents he's been running for years , it's fun and you will learn to tell a 66 from a 67 or an AU from a MS-61 . You should partake of these free learning experiences .Or if someone asks if a coin is real or fake read the threads and offer your opinion , these are all to help us learn about coins .

 

Here you say I don't believe in "it takes money to make money" But here...

"The reality is I once had an idea that would transform the world as we know it. Any idea is just that, an idea. It takes money to turn an idea into something physical.

If I would have had capital of around 100,000 dollars, borrowed, saved, or otherwise gifted, this idea would of made me the most richest man in the world. Your probably spitting your drink out right now at your screen, but it's the god's honest truth. It was an idea that would change everyone's life.

It takes money to make money. You make money just by having money. Rich people can live on the interest of their savings alone.

I'm working on something somewhat big as we speak, but it will probably be a few years before you notice it. It won't make be the richest man in the world, but it will turn a tidy profit.

I have a collection of about a dozen or so innovative and useful inventions I've drafted. It takes money to develop, manufacturer and market a product. Being a poor inventor simply does not work. "



...........you say it does, so which is it?

 

So many things wrong with this plan.

Not the least of which is this:

Conflict of interest.

 

As Ziggy gave an example of, you have bellyached probably dozens of times that you could have a ton of money by now but it takes money to make money.

Would it be great if people would send you a coin and $19.99 to have it appraised by you? Sure. Would it be great if beautiful women I never met paid me $19.99 to have me give them a compliment and a kiss? Sure.

Unfortunately for us both I think the likelihood of both those scenarios are about the same.

 

Yes, Apple computers started in a garage. HP started the same way.

The important thing to consider is: How many other companies started and then failed starting that way?

Apple and HP are rare examples outside the norm. I wouldn't count on being able to duplicate their accomplishments without a hell of a lot of luck, knowledge, and hard work.

 

Watch it Geoff. Tim will steal your idea.........

 

I have a feeling the chances of him getting money from beautiful ladies is about the same as people paying me to appraise coins.