What is PayPal? A Tool for Budding Entrepreneurs


If you hope to make any sort of money on the internet and you are just starting out, you are going to need to make use of a service called PayPal. Essentially it is a basic way to send and receive money on the internet. Practically every single eBay seller and a massive number of other small businesses make use of it to send and receive payment.

Essentially, PayPal enables any person or business with an email address to send and receive payments online in a convenient and secure manner. They have a massive network which works in conjunction with the existing EFT infrastructure that banks and credit card companies use to transfer money. Their service works extremely well for small businesses, electronic merchants, and people who cannot afford costly merchant services.


Since PayPal is becoming ever more ubiquitous, practically anyone can get a PayPal account. Unfortunately for some of the younger crowd, you need to have a bank account and a credit card to be verified on PayPal. This is really important because that way you can form a relationship based on trust with whomever you are dealing with. If your parents trust you with money, you can use their information if they will let you. If you have a checking account, you can get a Visa debit card with that and use that for your PayPal information.


PayPal has a varying set of fees for its services. They collect their money by taking a small percentage of each transaction. You do not pay any money when you send money, however PayPal charges 3.4% when you receive money through the system. The percentage that you pay to PayPal will decrease as the amount of transactions you receive increase.


PayPal is a great way for students and other young people to user the internet, because you can us your PayPal account for web hosting internet domain names, and you can use PayPal accounts to get paid for a lot of money making opportunities on the internet, such as DayTipper, Associated Content, and other web based advertising programs.


PayPal might not be the best way to go in all cases though, they have a history of locking up people’s accounts without good reason, and having some lousy customer service. There are even sites such as PayPalSucks.com and PayPalWarning.com which actively tries to get people to stop using their accounts. I wouldn’t let this stop me though, this is only an extremely small percentage of accounts with suspicious activity, and the worst case scenario is that whatever money you have in the account is locked up for a month or so.

How Ebay Entrepreneurs Can Profit from the Recession

As the middle class fades away, and more and more people become impoverished or even homeless, they will have to get their food, clothing and other staples from independent farmer’s markets and flea markets as many impoverished folks do, or online. Unlike the last Great Depression, if we have another one, the middle class, urbanized citizens of today will be far less capable of adjusting to it than the self sufficient farmers and merchants that survived during the 1930s. For the class that values having the latest gadgets and designer label clothing as if their identity depends on it, EBay and the Internet may be their final source to obtain their precious treasures.

All around my local community, brand new DVD players, fashion clothing, and designer jewelry are being liquidated at up to 75% less than retail at normally bustling city malls, Targets, Best Buy’s and other corporate outlets. As an Internet entrepreneur, I’ve been lapping these up and selling them on EBay in the Global market. As more and more people are finding brand new, brand name merchandise on my EBay store, the more they are stocking up, especially for the holidays since their kids are used to getting nice, shiny new toys under the tree. I sell them just enough to make a profit, not the outrageous markups you will see at Nordstrom’s and Mercy’s to pay for the atmosphere and the cute girl behind the counter.


If you want to be an entrepreneur, or find yourself unemployed, rather than waste your time polishing your resume and applying for jobs that are being shipped away along with our economy, why not pull your assets, sell what you can in a garage sale, EBay, or swap meet and take your nest egg to Target or Circuit City, which is going out of business, and take advantage of liquidation sales. Or, you can also find a lot of these items on websites such as Liquidation.com or Overstock.com. All it takes is a few hundred dollars to start an EBay empire. It’s like building a snowball – start small, slowly build it and keep growing it and it will get bigger and bigger. Remember to reinvest the profits into your business, and keep repeating, and eventually automate the process. Don’t bother listing them as auction items unless it’s an antique or something rare. Simply list it as a fixed price item like you would in a store and let the low price be what attracts the buyers. Buying in bulk to save money one the single items is the best way to go to mass sell mass produced products.


You can even advertise yourself as a reseller to help stores who are going out of business. Advertise your services in the local paper or classified ad magazines, or simply talk to local shop owners and ask if they have any excess inventory. Sell yourself as a vacuum that will help these businesses unload their excess goods. You don’t even have to buy it. EBay allows you to list products as a “pre-sale” if you don’t already have the merchandise as long as you mention it in the listing description. Offer the services of photographing, selling, and picking up and shipping the product. Their main goal is to unload, so you’ll get the products extremely cheap.


In most countries that fall to de-industrialization, businesses collapse. However, on the positive side it sets up a brand new opportunity for entrepreneurs to come in and rebuild from the ground up. Brush up on your e-commerce skills and you could laugh to the bank during these recessions.

Become an EBay Entrepreneur: No Selling Involved!

Have you thought about starting your own internet marketing business with eBay?

Maybe you’ve purchased a few “How-to Make Money On eBay” manuals from the power sellers. Look at the boat loads of money these guys are hauling into their bank accounts! Why couldn’t you do the same?


So what’s stopping you? Reality?


Yes, it sounds fantastic when you read the eBooks. But when you get down to the nitty-gritty, your eyes bug open. Whew. Maybe this is something you’re not yet ready to tackle. It’s hard work. Power sellers just didn’t decide one fine day that they wanted to get rich on eBay, jump right in and the next month book their Maui vacation.


Let’s take a very simplistic look at what these top eBay earners are doing before they head for Hawaii.


First…you have to have something to sell in order to make any money, right? So where do you get the goods? Now you do your research. You’ll want to find wholesale products so you can make a profit. Since there are endless places, you don’t want to choose willy-nilly. Remember when I mentioned research? That one task alone, can cause hair loss.


Second…you’ve decided where you’ll get your products. Maybe imports from a foreign country. Oh, by the way. Have you secured warehouse facilities? You can’t leave them out in the weather. Yes, that’s a cost you should have figured in.


Now you have to let the world know about these incredible deals they’ve been dying to buy. So you set up your eBay seller’s account. Take professional-quality pictures of what you have to offer the salivating public. Upload the pictures and don’t forget…now you want to draw on your impressive copywriting skills.


Third…okay, all of that is done. Now you watch the auctions. Then finally…a sale! Yahoo! Book the flight! But first, you have to call the courier or run to the post office with your specially-wrapped product for your lucky customer. (still spitting bubble-wrap)


Fourth…oops. The customer didn’t feel all that lucky? How dare they complain! You can’t handle this.


Yes, you have to deal with customer complaints, my friend. That’s your path to becoming an eBay power seller. Just remember the beach. And pray they don’t go on eBay and give you a negative review.


Fifth…Dear Diary: This is only the first month of becoming a great eBay entrepreneur. This is the hardest work I’ve ever done. I think I’m having a breakdown. And I don’t like beaches anymore.


Yes, it’s hard work becoming rich on eBay. That could explain why many entrepreneurs who love the possibilities of eBay and internet marketing have made the choice to do the business in a much easier way. With less costs.


Now you can have the best of both worlds by becoming an eBay affiliate! Combining affiliate marketing with your chosen niche. You can join eBay’s affiliate program on their site. Or, for the easiest, fastest way, you can obtain the means of creating an eBay affiliate website and earn commissions on what your customers buy. Heck, you even make money when someone signs up with eBay!


So whether you’re in for the hard work of being an eBay seller or the easy way of the eBay affiliate, you’ll make the right choice for you. You may even hit the beach, again!


(c) Karen Cook


To find out how you can choose from 60 million products to affiliate with, swim over to http://addebay.blogspot.com and catch the wave!

Karen Cook works at a Public Library where she helps patrons with their home based business research.