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- Aug 10, 2019
- 3
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Hi,
I from Australia and have just read the Millionaire Fastlane . I have not yet read Unscripted but will get to that when I can. I want to go through my side hustle which is working for me and make sure I have applied CENTS (or CENTS) to it correctly.
My side hustle is sports betting. Now before anyone complains that everyone loses at gambling, etc. I can without a doubt say I make a profit as I meticulously record everything. The last few months the monthly profit has started to explode due to reinvesting my profits from previous months and because I started to take it more seriously. I originally started at $100 a few years back and it has made over 200K in profits. My profit in the last year is over 70K and its rising all the time. In Australia we do not pay tax on gambling winnings so that is 70K in my bank account that can be reinvested or spent.
Here is how I have applied CENTS as my analysis:
Control: I control all the bets going on but I lack control of the marketplace. I don't think I have control as if the marketplace closes then I lose my side income. I don't believe there is anything I can do about this apart from starting an online gambling business myself.
Entry: The barrier to entry is Low for the average person, but professional gambling is like a sport. The real good people get paid a lot of money whereas most people tend to lose their money. The conditions of entry is that I have a lot of data, personal ratings, can program my systems and sports knowledge which means I keep ahead of the pack by a wide margin.
Need: The need is entertainment for people. People will always gamble because it makes the games exciting, it feels like they are support their teams, etc. There is a large population around the world who gamble and I do not see this diminishing anytime soon.
Time: I have written a personal program (its not available anywhere else) that can do the bets while I am sleeping, while I am working, while I am vacationing, while I am doing anything really. While I put time into creating it I do not need to put anymore time into it and it does what it needs to do without me.
Scale: As I profit I increase my bet sizes till they start to affect the market at which point I either need to scale horizontally into new sports or I am capped at my profit point. I believe with my current approach this is around $500K- $1 million profit per year but I have not hit that point yet. Essentially SCALE is about putting more money at work to increase the turnover to increase the profit.
Based on what I think I analysed I am missing Control only. Would this be the correct assessment?
My next question is what is the approach I should take from here? If I can clear around 15-20K a month profit each month should I be putting this into a safe investment on the side ( ie fixed income, conservative fund, property trusts, etc) which returns 3% - 6% in case I lose the control part and the market closes? Before this point I have been reinvesting the profits back into the sports betting to get it to a good amount that can withstand the losses but now I think I need to expand where I put that money.
At the moment I still work in a full time position and have not taken the leap to self-employed. My current plan is to look at the investments above and build those side investments up to a good amount in the next 5 years. Why 5 years? Its because my daughter is still in school (my wife is already retired and a stay at home mum) and school restricts our ability to travel to certain times of the year. I also like the idea of the security of the job (yes I trade my time for money) while I still have a daughter to support at school. The other main reason I still work is I get paid very well in a job I enjoy doing.
All positive advice is welcome. If you are just going to complain about gambling please keep it to yourself.
Thanks.
I from Australia and have just read the Millionaire Fastlane . I have not yet read Unscripted but will get to that when I can. I want to go through my side hustle which is working for me and make sure I have applied CENTS (or CENTS) to it correctly.
My side hustle is sports betting. Now before anyone complains that everyone loses at gambling, etc. I can without a doubt say I make a profit as I meticulously record everything. The last few months the monthly profit has started to explode due to reinvesting my profits from previous months and because I started to take it more seriously. I originally started at $100 a few years back and it has made over 200K in profits. My profit in the last year is over 70K and its rising all the time. In Australia we do not pay tax on gambling winnings so that is 70K in my bank account that can be reinvested or spent.
Here is how I have applied CENTS as my analysis:
Control: I control all the bets going on but I lack control of the marketplace. I don't think I have control as if the marketplace closes then I lose my side income. I don't believe there is anything I can do about this apart from starting an online gambling business myself.
Entry: The barrier to entry is Low for the average person, but professional gambling is like a sport. The real good people get paid a lot of money whereas most people tend to lose their money. The conditions of entry is that I have a lot of data, personal ratings, can program my systems and sports knowledge which means I keep ahead of the pack by a wide margin.
Need: The need is entertainment for people. People will always gamble because it makes the games exciting, it feels like they are support their teams, etc. There is a large population around the world who gamble and I do not see this diminishing anytime soon.
Time: I have written a personal program (its not available anywhere else) that can do the bets while I am sleeping, while I am working, while I am vacationing, while I am doing anything really. While I put time into creating it I do not need to put anymore time into it and it does what it needs to do without me.
Scale: As I profit I increase my bet sizes till they start to affect the market at which point I either need to scale horizontally into new sports or I am capped at my profit point. I believe with my current approach this is around $500K- $1 million profit per year but I have not hit that point yet. Essentially SCALE is about putting more money at work to increase the turnover to increase the profit.
Based on what I think I analysed I am missing Control only. Would this be the correct assessment?
My next question is what is the approach I should take from here? If I can clear around 15-20K a month profit each month should I be putting this into a safe investment on the side ( ie fixed income, conservative fund, property trusts, etc) which returns 3% - 6% in case I lose the control part and the market closes? Before this point I have been reinvesting the profits back into the sports betting to get it to a good amount that can withstand the losses but now I think I need to expand where I put that money.
At the moment I still work in a full time position and have not taken the leap to self-employed. My current plan is to look at the investments above and build those side investments up to a good amount in the next 5 years. Why 5 years? Its because my daughter is still in school (my wife is already retired and a stay at home mum) and school restricts our ability to travel to certain times of the year. I also like the idea of the security of the job (yes I trade my time for money) while I still have a daughter to support at school. The other main reason I still work is I get paid very well in a job I enjoy doing.
All positive advice is welcome. If you are just going to complain about gambling please keep it to yourself.
Thanks.
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