Web Design Arbitrage

Andrew describes how he discovered web design arbitrage by taking on Silicon Valley startup projects and subcontracting portions of the work, creating his first taste of leveraged income.

Key Points:

  • Initial Discovery:

    • Found Silicon Valley startups posting higher-paying design jobs on online job boards
    • Transitioned from $500 local websites to $2,000 Silicon Valley projects
    • Work was primarily interface and product design
  • First Arbitrage Opportunity:

    • Client asked for JavaScript work he couldn't do
    • Found a computer science student who would do it for $500
    • Charged client $1,000, making $500 profit with no work
  • Key Realization:

    • Discovered the power of selling other people's time
    • Shifted from self-employed (selling own time) to business owner (selling others' time)
    • Created leverage by marking up subcontracted work
  • Business Evolution:

    • Started systematizing the process using E-Myth principles
    • Treated business as a machine with replaceable parts
    • Scaled to dozen employees
    • Reached $1M+ personal income by age 22-23

This simple arbitrage model became the foundation for building a successful design agency that eventually worked with major Silicon Valley companies like Slack.

01:36 - 02:18
Full video: 54:50
AW

Andrew Wilkinson

Co-founder of Tiny

Wilkinson is the co-founder of Tiny Capital, which owns companies including AeroPress, MetaLab and Dribble. He is also the co-founder and chairman of WeCommerce, a holding company that starts, buys, and invests in the world’s top Shopify businesses.

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