Labor Law Poster Arbitrage

A business that sells labor law posters to companies by converting free government-provided compliance materials into a convenient paid service. They use awareness tactics and ease-of-use to generate millions in revenue with high margins.

Key Points:

• Core Product:

  • Labor law posters required by law in company break rooms
  • Must be updated annually
  • Available for free on government websites, but hard to find/access

• Business Model:

  • Mail marketing letters to businesses
  • Charge $45 per poster
  • Single SKU, single product updated yearly
  • High margins due to simple printing operation

• Marketing Strategy:

  • Send official-looking letters to businesses
  • Create urgency by highlighting legal requirements
  • Emphasize compliance risks
  • Make ordering process simple compared to government websites

• Value Proposition:

  • Simplify compliance process for businesses
  • Save time vs navigating government websites
  • Ensure businesses stay up-to-date with requirements
  • Handle annual updates automatically

• Revenue:

  • Generates millions per year
  • High profit margins due to:
    • Simple product
    • Low operational complexity
    • Recurring annual sales