The reality of buying services low and selling high

Fellow Warriors, Troopers and Internet Gangsters

Now that I have one market ticking over, I decided to look at the wonderful world of Arbitrage (in this case, buying services low and adding a middle man fee) to add a further income stream to my business.

I recently bought a decent guide about it and also a piece of software which helps with getting leads. It sounds pretty simple right? Find a designer who creates logos (or any of the many other available services) at a reasonable price, and then add your fee on top and sell the service to a customer at a profit.

This model works as it has been working for companies for years, not just services but physical products as well. However, I'm finding it very difficult to break into.

If you look at places like freelancer, odesk, elan etc, you will have something like 50 people bidding for one job, not only with a huge portfolio but bidding at such a low price, it wouldn't be worthwhile to take the job on.

I looked at a posting for translating something into Korean for example, and I was up against people that were born there, then educated in Oxford, London, and were charging something like 20 bucks!! Oh mannnn.

Anyway, I wanted to get your feedback on this, what are your thoughts? What am I missing? Anybody killing it with this method? Anybody excited about GTA 5 coming out next week? Any many other important issues like that :-)

Cheers
Phil