The secret to online book arbitrage is “cash compounding.”

Good news: You can start with just about any amount of money, and turn it into even more money (and more and more...)

Here’s how it works: You invest $50 in books, resell, and turn that into $75. Then $75 becomes $110, and then $200 and $1,000 and beyond.

The Magic Of Compounded Interest

The effect is principally the same as “compounded interest,” which Albert Einstein
called “the eighth wonder of the world.”

Below, I’m going to give you hard numbers demonstrating exactly how much potential there is with “cash compounding” and online book arbitrage. I want to be clear about one thing: These are not theoretical calculations. These are hard numbers. The math doesn’t lie.

This is exactly what happens if you achieved 50% profits per transaction, and invest
the money into more books. The math doesn’t lie.

Two big question that comes up when I show people these charts.

1. What is a “sales cycle”? Simply put, it is the period of time from when a book is for sale on Amazon and when it sells.
2. How long is a sales cycle? It should go without saying “that depends on the book.” See our sales rank article for how to determine the selling frequency of a book.

• Example: You Start With $50
• $50 = 2 books.
• Profit per book: $12.50 (50% profit)
• New cash total: $75

Now that you see how it works, here’s how the math plays out when you continue
investing in more books...

Start w/ $50: Cash compounding example

• ‍Cycle #1: $75
• Cycle #2: $112
• Cycle #3: $169
• Cycle #4: $253
• Cycle #5: $380
• Cycle #6: $570
• Cycle #7: $855
• Cycle #8: $1,283
• Cycle #9: $1,923
• Cycle #10: $2,885
  (Believe it or not, after 20 sales cycles, $50 becomes $166,262)

Start w/ $250: Cash compounding example

• ‍‍Cycle #1: $375
• Cycle #2: $562
• Cycle #3: $843
• Cycle #4: $1,265
• Cycle #5: $1,898
• Cycle #6: $2,847
• Cycle #7: $4,270
• Cycle #8: $6,405
• Cycle #9: $9,607
• Cycle #10: $14,411

Start w/ $500: Cash compounding example‍

• Cycle #1: $750
• Cycle #2: $1,125
• Cycle #3: $1,688
• Cycle #4: $2,531
• Cycle #5: $3,797
• Cycle #6: $5,695
• Cycle #7: $8,543
• Cycle #8: $12,814
• Cycle #9: $19,222
• Cycle #10:$28,832

Here's a video that explains this formula more:

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