In the old days, trade was hard.
Imagine traveling from one city to another on horseback for days. Or sailing with your ship without seeing the land for months, eating the same dried food or fish every day.
But it was also lucrative.
Traders were buying goods cheaply in one city, and selling them for more in another. Simple.
Some cities were willing to pay more for the same goods than others. Either because they didn’t have enough or they found a new way to use them.
So if you knew what to buy and sell where; you had great opportunities as a trader.
The Information Trade
In the modern world, trade is easy.
And we don’t only trade goods anymore; we trade information too.
If you know how to use Photoshop, you’re a city with silk. You wouldn’t pay to learn Photoshop as you already have a high supply.
But there are other cities that desperately need silk. You can trade—or use—your information to earn money.
This is called Information Arbitrage. It’s using the knowledge gap between you and others.
And you can identify these gaps by observing people, companies, sectors, and countries.
Facebook/Google Ads knowledge is common for digital businesses. But many physical businesses lack this knowledge, which creates an information arbitrage opportunity.
You can exploit it by trading the knowledge or using it for your business.
Some other examples:
- Knowing how to start a successful Youtube channel
- An accountant who knows tax loopholes
- Knowing how to write copy that increases sales
All this information can be used and traded.
Think about your own knowledge. What information arbitrage do you have that you are not aware of?
If you are a designer, you are probably around a lot of designers. Your knowledge wouldn’t feel unique to you.
But, you have arbitrage opportunities with many different people and businesses. Observe and identify them.
Remember, there is always a “city” out there that is willing to trade with you.
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