The law of supply and demand can apply to anything that one person wants, and another person owns. The scarcity of the item in question -- combined with how much the party who wants the item is willing to pay for it -- is what determines the price. This is the basic principle behind the stock market, the business of collectibles, and even concert tickets. You can invest in concert tickets by purchasing them for a lower amount of money, then selling them for a profit.
Determine the band or concert in which you want to invest your money. You need to find a band or show that is going to sell out, or find a way to get the most desirable seats in the house. Floor seats, luxury boxes, and seats in lower levels, with a clear view of the stage, are preferable to seats located far away, or with an obstructed view. Research the bands that sell-out quickly.
Find out if there are any special pre-sales. Pre-sale tickets are often reserved for special groups, such as fan clubs, or people with exclusive credit cards. If the concert you wish to invest in has a pre-sale option, figure out how you can buy those tickets. You may have to join a fan club or sign-up for a credit card, but if you get desirable tickets, it will be worth it.
Collect enough money to buy the maximum number of tickets allowed per transaction. If you are investing in a hot show, then it may sell-out in minutes. Therefore you want to have enough cash or credit to buy as many tickets as you can, in your desired location, because it may be your only opportunity.
Purchase the concert tickets. Once the tickets officially go on pre-sale -- if that option is open to you -- or sale, be logged-in to the ticketing website and purchase the tickets. You do have the option of going to the actual box office, however, for a hot ticket, that might entail standing in line for a long time -- or even sleeping overnight. With the way the Internet moves, unless you are in the first several spots in line, the tickets will be snapped up by buyers over the Internet.
List your tickets on a ticket re-sale website. There are many ticket resale or auction sites, where you can list the concert tickets. See what other people are selling similar tickets for, and price yours accordingly. If you want them to move fast, you might post the price a little lower. If you think the demand will only increase, price them a little higher.
Sell the tickets and re-invest the profits. Many concert tickets are now sent in email format. Therefore the cost to ship to the buyer is almost nothing. If you are using a ticket re-sale or auction website, you will have to pay a percentage fee to them for the privilege of listing the tickets. Pricing varies, based on the amount for which you sold the tickets. Once you have made your profit, look to invest again in the next hot concert.
Invest with friends to diversify your risk.
If a concert does not sell out, or the seats you own are not desirable, your profit can quickly turn into a loss. Unlike stock, which at least has the opportunity to rebound, if it loses value, once the concert begins, the ticket becomes worthless.
Scott Damon is a Web content specialist who has written for a multitude of websites dating back to 2007. Damon covers a variety of topics including personal finance, small business, sports, food and travel, among many others.