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AIRBNB BUSINESS MODELS: How to make money on Airbnb… even with no money (4 WAYS)

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Learn the four business models that can help you earn money on Airbnb!

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In this video, we review four business models for how you can get started making money on Airbnb, without any experience.  With some of them, you need some spare space and with others you do not.   

The first method is the easiest to get started on and is hosting your own space on Airbnb.  The cool thing about Airbnb is that you can host just about any space, even an air mattress in your living room, and make some income doing it. All you need to do to get started is go on Airbnb, set up your property listing, take some pictures, write a description and a headline.  

Depending on your property and location, that can really go quite far in terms of potential income.  It is going to be between a couple hundred dollars to ten thousand dollars per month.  I actually used this strategy to live completely rent-free for a number of years.  I would rent a three-bedroom home, use one bedroom for myself and then rent out the other two bedrooms to cover the rent. 

The second method is one that I recommend the least.  It carries a fair amount of risk and you need money to get started.  It is rental arbitrage. That means you’re investing into renting a property that is not your own.  So you are renting the property, paying the landlord the first and last month’s rent, the security deposit, the cost to furnish it.  Then, you make sure you have the landlord’s permission to flip that property on Airbnb and earn additional income from what you are making on Airbnb versus what your rent costs.  

The trick with this one is to find the right property.  If you get the wrong property, you can end up breaking even or losing money.  Regardless of how the property performs on Airbnb, you are paying rent.  At minimum, you will be investing $5,000 to $7,000.  The real advantage of this model is that you can scale it up and have multiple properties and really hone your business. 

The next model is called the co-hosting or management fee business model. You can achieve the same level of income with much less risk, since you do not have any startup capital at all.  Basically, you approach property owners who are looking to earn money on their properties and want to improve their performance and offer to manage all of the aspects of Airbnb hosting for them.  With that, you can charge a 20% management fee, meaning you will collect 20% of all the income that comes in on Airbnb. 

You take care of managing the guests, setting the pricing, organizing, cleaning and things like that.  So, without investing into renting the property or furnishing it, you’re going to manage the operational aspects of hosting and make your income doing that. The nice thing is that it is zero risk for you.  If a property does not perform well, then you earn less management fees, but you will never lose money.  

The other cool thing about this is that you can also offer what I call “Pre-Check-In Management” where you manage just the online aspects of hosting.  You’re taking care of some of the initial guests messaging, pricing optimization, SEO, making sure the listing looks good.  You can do it 100% remotely.  Typically, you can only charge about 10% management fees for this kind of service. 

The last method to talk about is Airbnb experiences.  Airbnb has launched its experiences division over the last couple of years.  It’s for a wide range of different experiences that range from cooking classes to past Amazon employees offering mock Amazon intern interviews.  

If you have any kind of skill or hobby that you enjoy that you would like to do with others, then chances are you can earn an income offering that experience on Airbnb. The demand that people have for that experience will dictate how much you earn, but at the very least, you can earn a couple hundred dollars in additional spending money for the month. 

To do this, register yourself to provide an experience in the area. Then, you’re going to want to optimize your listing and make sure it is really set up well to make it as appealing as possible. 

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VIDEO TRANSCRIPT:

Hey there everyone. My name is James and if you're new to the channel in here, I am the co author of Airbnb for Dummies. I'm the founder of BNB Mastery Program where I teach people how to build businesses and earn a full time income managing properties on Airbnb. And I also am the co-owner and runner of learnbnb.com where we teach people how to make money on Airbnb and optimize their properties on Airbnb, basically all the ins and outs of Airbnb.

And so in today's video, I want to put together a quick video that's just going to go over four ways that you can earn money and earn an income on Airbnb as a platform. I want to go over four different business models for how you can make money on Airbnb. And these are models that you can start out without any experience you some of them, you need to have a spare space some of them you don't even have to have any kind of a spare space.

You literally be nothing to get started except for a little bit of know how and some work obviously. So I want to go over each one of those four ways and kind of go over them in a bit more detail. I also talk to you about how you can get started if you want to make money with either one of those four different methods. Because honestly I do believe that Airbnb is probably the best way that you can possibly make money.

If you have no experience if you don't have skills if you don't have any money to get started, I'm going to show you that how Airbnb is probably the best way to make money with relative ease. So the first month method I want to talk to you about is probably the easiest to get started on. It's just hosting your own space on Airbnb. Now the cool thing is that for Airbnb, you can host just about any space on there and make a pretty good income doing it.

You can host something as little as an air mattress on your like a blow up air mattress in your living room. I know it's crazy people will actually pay for that and depending on the location of your property, they will pay anywhere from a couple dollars a night up to 60 $70 a night for that if you're in somewhere that is in high demand, like San Francisco and LA or Toronto.

And so that's probably the easiest way to get started is taking whatever spare space you have, whether that's an air mattress in your living room to an extra bedroom that you might have to a whole additional property that you might have and then hosting that space on Airbnb.

All you need to do to get started with it is just go onto Airbnb and set up your property, set the listing for it, you ought to take couple pictures, write a description, write a headline, if you want to learn more about how to do that, check out the rest of the videos on this channel, we go into it in detail. And if you really want to maximise on it, I'm going to leave a link as well to a free training down below.

That'll show you how to just do everything from A to Z really, really simply and easily. So that's probably the easiest way to get started. And you can really take that quite far in terms of your income potential for that one, it's going to be anywhere from a couple hundred to 510 thousand dollars a month. If you have obviously a really nice property or if you have an air mattress there's going to be different levels of income earning.

One cool kind of side note is that I actually rental hat and sort of lived in Germany. Rondo, completely rent free for a number of years using exactly this strategy, I would just rent a three bedroom home only needing one of the bedrooms for myself, and then rent out the other two bedrooms and sometimes even the pillow couch in the living room to be able to completely cover the cost of rent.

In the best months of the year, I would actually make a couple hundred dollars in profit, while also covering my rent and the worst month of the year, I would just break even on my rent payment. So essentially, I was living in downtown Toronto, which costs about two to $3,000 a month to live downtown Toronto, and I was doing that completely free.

So that's a really cool way to earn some income. And the second method that I want to talk to you about is one of the harder ones and one of the ones that I recommend the least because there's a decent amount of risk and you need some money to get started but I will dive into it in this video as well. And that's rental arbitrage. And basically all that means is you're taking money and you're investing into renting a property that isn't your own.

And so you're renting this property you're paying the landlord their first and last month's rent Typically, a security deposit is pretty standard. And then you're going to pay some more money to get that property furnished if you're not renting it already furnished. And then what you're going to do is you're going to make sure that you've got your landlord's permission when you initially rented it to flip that property on Airbnb.

And when you do that, you basically just then flip it onto Airbnb, and you earn additional income from the access that you're making on Airbnb versus what you're paying out in rent. Now, if you get the right property, this can be a couple hundred or even a couple thousand dollars every single month. Now the trick is you have to find the right property.

If you find the wrong property that doesn't do very well on Airbnb, then you can end up breaking even or sometimes even losing money. Also, if you have any unexpected expenses come up or unexpected issues where you're not able to get your property but then again, you've got a decent amount of money on the line because you're paying rent every month whether you get bookings or not.

So for that reason, like I mentioned, it can be a bit more risky. There's also a decent amount of upfront expense because you have have to pay that first and last month's rent, you have to furnish the place that's typically going to be at the minimum five to $7,000.

And then the real advantage of this, though, is that you can scale it up quite a bit as you go, you can get more than one property and do this repeatedly with multiple different properties, find the right ones, you know, really honing your business. And there are people that are certainly earning a full time really great income doing this once you get to scale.

Now, the next model I'm going to talk about is one that you can achieve the same level of income but with a whole lot less risk. And with actually no startup capital at all. You don't have to invest any of your own. You don't have to raise any from friends. And that's called the CO hosting or management fee model.

And that's where you basically go to property owners who are looking to earn money on their properties, whether they're currently looking to get a 12 month tenant in there, get someone in there long term, or they're already listed on Airbnb, but they want some help to improve their performance. And he basically approached those property owners and you offer to take care of managing all of the aspect of Airbnb hosting for them.

And so with that, you can basically charge a 20% management fee roughly. So you're going to collect 20% of all the income that comes in on Airbnb. And you're just going to take care of managing the guests setting the pricing, organizing, cleaning, and things of that nature.

So now without having to actually invest into renting the property or furnishing it, the property owner is going to do that, you're basically just going to manage the operational aspects of the hosting, and you're going to earn a really nice income off of that. And the nice thing about that is, again, like I said, you don't have to invest any of your own money into getting started. But it also means it's zero risk for you.

If the property doesn't do well in a month, then you just turn a slightly larger sharks might slightly smaller management fee. So your management fees might go down, but there's no way for them to ever go negative. And the other cool thing about this is that you can also offer what I call pre check in management, and that's where you basically just manage the online aspects of hosting.

So you're just taken care of Some of the initial guests messaging, pricing optimization, search engine optimization to make sure that the property shows up high in the search results on Airbnb listing optimization and make sure the photos are good, the headline is good, the description is good. you're managing all of that stuff. And you can do it completely remotely.

So it doesn't matter if you live in the middle of nowhere halfway across the world, you can imagine properties in a really desirable destination, like for example, LA, Florida, San Francisco, whatever you want, you can pick an area, pick a niche focus in on that manage properties exceptionally well help them to optimize performance, those properties and you can charge a percentage management fee on that as well.

So that's kind of a different way to use that management fee model but to do a completely hands off completely remotely. Now needless to say, you won't be able to charge a full 20% management fee for this. Typically you're only going to be charging me about 10% management fees. If you because you're doing a lot less you're not organizing the cleaners.

You're really only taking care of The pre check in aspects of management mean before the guests actually checks into the property. And so that's method number three. And we talked about ownership or using your own property. We talked about arbitrage. Then we talked about the management fee model, the last one is going to come in a couple of seconds.

Before that, I just want to ask that you give this video quick like a quick thumbs up. If you appreciate if you get value from it, give it a quick thumbs up. And if you're new to the channel, then click subscribe. And also check out all the resources I'm leaving you down below in the description. I'm leaving you links to some completely free resources and trainings to help you get started.

I'm going to leave a link to a free training on how to get started with your own property, a free training on how to get started managing other people's properties using that co hosting management fee model. And I'm also going to leave you a link to a free downloadable profitability projection tool that's going to help you to get started just basically projecting and figuring out how much money you really could earn on Airbnb. So check out all that subscribe to the channel. Don't like this video, give it a quick thumbs up.

And the last method that I want to talk to you about is Airbnb experiences. This one isn't the newest method available because Airbnb just recently over the last couple years has launched their experiences division. And what that division is, is it basically is the same kind of CO hosting kind of sharing marketplace that Airbnb is already established for properties.

But it's actually just for experiences. It's for a wide range of different experiences that can range from having a cooking class to there's even people that are doing that are past Amazon employees that are offering mock Amazon intern interviews so you can prepare for an interview for Amazon. You can go hiking and rock on people, you can take people to check out cool photo opportunities and you can take photos of them. You can do virtually anything.

If you have any kind of skill or you have any kind of a hobby that you enjoy doing and you'd like to do with others, then chances are you can earn an income offering that experience on Airbnb. Now the depth that you go and the love Experience little demand that people have for that experience is going to dictate how much you can earn. But you can certainly earn a full time income offering Airbnb experiences.

And at the very least, you can earn a couple hundred dollars in additional spending money for the month. So that's a really cool way to do it. All you need to do to access Airbnb experiences is go on to Airbnb and sign up and register yourself to provide an experience in your area. And then you're going to just want to optimize listing, make sure the headline and the description are really well set up really optimized to make it as appealing as possible.

And then within no time, you're going to start getting some bookings. And you're going to get people wanting to come out for that experience. You can do them one on one, you can also do them as a group. If you have something that is more group oriented, like for example, a cooking class or a hike things of that nature. And then in no time you can be earning some additional income that way.

So I hope this video has been really helpful, and I hope that it's giving you a good solid overview of how you can use these four different methods to earn some additional income using Airbnb. Like I said before, I really do believe that Airbnb is one of the best possible ways for anyone to earn additional income, even if they have no experience no money to get started with.

So hopefully this has helped you to understand how you can do that for yourself and how you can leverage this opportunity. And again, if you're new to the channel, please subscribe to the channel and check out the free crank free trainings down below.

I put together two videos every single week on this channel that are going to help you to earn as much money as possible and have as much success as possible on Airbnb, so make sure that you subscribe, make sure you check out the free trainings and again, just give this video quick like if you got any kind of value from it.

If you enjoyed it, it really does help me out tremendously with YouTube's algorithm and with getting these videos out to as many people as possible so that more of us can earn an income with Airbnb. With that I will say goodbye and I'll see you in the next video.

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