An idea sparked in an American youth, and he now earns $6.5 million annually.

From bankruptcy to millionaire

A used phone lifts an American youth from bankruptcy to becoming a millionaire.

About 17 years ago, American Rick Sinko was completely broke and unemployed, desperately searching for a way to support his 5-year-old child. But what began as a simple attempt to sell a used phone on eBay later turned into an astonishing success story, earning him millions of dollars today.

In 2008, Sinko bought a phone for $35 from Craigslist and then sold it on eBay for $75. That deal was a "loophole," as he describes it, and it marked the beginning of a long journey of research, learning, and relentless work, sometimes reaching 20 hours a day. “I used to go to flea markets, visit secondhand clothing stores, build relationships, study the market, and showcase products every day without fail,” Cinco, now 41, told CNBC.

From Small-Scale Retailer to Major Secondhand Clothing Supplier

His goal of making ends meet gradually transformed into a massive enterprise. In 2023, Cinco launched his own company, Technsports, which specializes in wholesale secondhand clothing for professional retailers. The company sells approximately 5,000 items daily and generated over $6.5 million in revenue in 2024, according to documents reviewed by CNBC.

Cinco confirms that his company is profitable, with a profit margin of up to 50% on every item sold. But he emphasizes that this success has not come easily: “I haven’t taken a single day off in almost 20 years. I’m lucky, but it has required tremendous effort, a huge commitment, and countless sacrifices.”

Starting from scratch… and a broken phone changed everything.

After becoming a father at 18, Sinko worked as a supervisor in a CVS imaging lab for five years. He then earned a computer repair certificate and moved to Circuit City, but just two weeks later, the company went bankrupt, leaving him unemployed in the midst of the global financial crisis.

That's when his phone broke, and he didn't have enough money to buy a new one. He searched for a used phone on eBay and discovered he could buy the same phone on Craigslist for less and resell it for a profit. That was his "lightbulb moment," as he calls it, and it marked the beginning of a buying and selling spree that lasted for 20 years. Sinko says, "You don't need a lot of money to start, and you don't need in-depth knowledge. Just start."

He initially focused on electronics, then moved on to secondhand clothing, which required less customer support and sold more easily. Over time, Sinko discovered that some secondhand items, like a Polo Ralph Lauren shirt, could be more valuable than electronics. "A lot of these items end up on the ground in flea markets, and people don't realize their worth," Sinko says.

Sincko started his day before dawn, moving between shops and markets, searching for hidden treasures in piles of old clothes. Thanks to his connections with vendors, he was able to secure the best pieces before listing them. He listed around 250 items daily and employed five freelancers to help with photography, packaging, and shipping.

A Game-Changing Move

In 2023, after his eBay sales reached $2.5 million, Sinko decided to change his business model. Instead of selling each item individually, he began buying clothes in bulk and selling them to other vendors who would then sort and resell them themselves.

“Inventory has become the most valuable asset in my business,” says Cinco, adding, “I’m more profitable when I sell larger quantities with lower margins.” This shift has also helped him fulfill a promise he made to his wife, whom he met during his brief stint at Circuit City: to work hard until his son graduated from high school, then retire early and take a “50-year break.”

Last year, the couple embarked on a tour of the United States, visiting New York, California, and Las Vegas. “We’re starting to reap the rewards of our hard work,” says Cinco, but admits, “My mind is still working. I can’t stop.” Despite his success, Cinco still works every day, driven by an insatiable desire to compete and achieve more. “When you realize you can turn $5 into $25, how can you relax?”