The profit margin on arbitrage transactions is typically in 1% - 5% range, although larger profits are not uncommon. 3% net profit a transaction lasting 2 or 3 days may not seem like much but because it is risk free, it quickly adds up. Remember, there are no losses to set you back. Consider this : 1% profit for each day money is invested is equivalent to 365% return on an annual basis - an excellent return by any measure.

With arbitrage, you let Law of Compounding work its magic.

Of course, no one can predict number of arbitrage opportunities which will occur. Suffice to say that with thousands of sporting events occurring all year round, there is an abundance of arbitrage opportunities. Is there a possibility, however slim, of default by a sportsbook? Yes, and you should be prudent in selection of sportsbooks that you will deal with. Bettors are spoilt for choice as there are many well established and reputable sportsbooks (particularly UK and Australian) to choose from. Of course, you may not always get best odds when using these established 'names' but this is a small price for safety and reliability.

The arbitrage strategies are completely legal and in many jurisdictions where sportsbooks are located, winnings are tax free. As sportsbetting takes place globally, you are responsible for tax liabilities (if any) on winnings remitted.

There is 'no slippage' or other hidden costs. Other than occasional cost of transferring funds to and from your accounts, there are very few costs associated with arbitrage transactions. You will need to pay for your internet connection ( which most people have any way for email , web surfing, VOIP) and an 'arbs alert' service if you decide to use one. There are no brokerage fees, stamp duties or expensive data feeds. Real time data on prices is available on web sites of sportsbooks. There is also no need to be glued to computer screen all day! It only takes a few minutes to check and put on an arbitrage transaction.

In span of only a few years, online sports betting is about to become a billion dollar industry. Where there are markets, there will always be arbitrage opportunities. Have no fear that your knowledge of arbitrage techniques will ever become obsolete.

Daniel Tong http://www.arbitrage-profits.com

*You have permission to publish this article in your ezine or on your website, free of charge, as long as bylines are included. A courtesy copy of your publication would be appreciated.

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If you have testimonials and feedback from happy customers, tell world. It's true that Richardson had these advantages, too, but he is newsworthy simply because he is an exception and not rule. Generally, feedback system works very well.

If you have special credentials, let buyers know. For example, perhaps you are a nurse who sells nutritional supplements or you are an antique dealer who has been in business for 30 years and can prove it.

This kind of credibility is much more reassuring than a one page website and a free hotmail address.

2. Credit cards are safest way to purchase anything. These days, it is possible for most entrepreneurs to accept credit cards through auction sites or 3rd party processors, even if they don't have their own merchant account. Go even further and explain safety of credit cards to your buyers.

In my one and only personal experience with auction fraud, there were dozens of other sellers who never received their merchandise. Those who paid by credit card, like I did, received their money back. Those who paid with cash or cashier's checks simply lost their money.

eBay has fraud protection, but it only covers $175.

3. Escrow is a great safeguard, although it is most practical for higher priced sales. It works like this:

a. The buyer sends purchase price to escrow company, who then verifies funds b. The escrow company notifies seller who ships merchandise to buyer c. When buyer is satisfied, money is released to seller d. If buyer isn't satisfied, he can return merchandise to seller and receive his money back. These kinds of conditions are usually specified in advance. That is, "I changed my mind" usually isn't grounds for return of merchandise. It normally has to be misrepresented in some way for a buyer return.

According to news stories, one of Richardson's buyers sent a registered check for $20,000. That money is lost for good. If buyer had been careful enough to use an escrow company that loss would not have occurred. If you sell expensive items, always mention this option to buyers. Even if they choose not to use it, they will know you have nothing to hide.