Step 1 - Acquire Hardware

The first step is to acquire some hardware. The idea is to get the hardware as cheap as you can. The way that I did this was to purchase some broken units off ebay. The key is to pay attention to what is broken. For example, it is ok to get a PS3 with an optical drive that doesn't work as long as you pair it with an optical drive that does. More than likely you will need to purchase at least 3 units. Also, pay attention to what is included in the auction. Controllers, original packaging, games and blu-ray discs are all items that are commonly left off of auctions for broken PS3s. Some of these you will need and others you will not. Also, pay attention to the models that you are getting. The original 60GB, while the hardest to find, is also arguably the most in demand. This is important later as you will attempt to sell a working PS3 and the more money you get the better.

How to get a PS3 for free

First of all, I want to point out that this is not some quick scam. It does not involve signing up for any offers and it does require a little work and some technical knowledge. Most information can be pretty readily found online and anyone who has worked on a PC before can tackle this task.
This site will come in very handy: http://www.llamma.com/PS3/repair/PS3_disassembly_tutorial.htm

Finally, I am sure there is more than one way to do what I describe here. I am simply providing my perspective and I can only speak to what I have done. So let's get to it. The steps will be as follows:

1. Acquire Hardware
2. Repair PS3
3. Sell PS3