It seems as if everyone wants to start a home based business these days, and many of those businesses are conducted primarily on the Internet. There are many models for successful home based businesses out there. One such business model suggests you can earn an income with information marketing by selling information products on the Internet. But is this a legitimate home based business idea? And is it an idea you should pursue?In a word, the simple answer is “Yes!” Information marketing is a great way to earn money online, and with the global availability of the Internet, there has never been a better time to capitalize on this kind of home based business opportunity. But, of course, there are a few guidelines you should follow.1. Be An ExpertFirst, it stands to reason that if you are information marketing or selling information; then you must have information other people want to purchase. You must know something or be an expert on some topic that other people want to know about. You must have information or resources to share. You must have an information product.That means you need to be an expert on something, so you can create information products to develop a home based business in information marketing. This really is not as difficult as it sounds, however. Realistically, every one of us is good at something – whether that is a job, a hobby, or a process or procedure. And every one of us could create an information product such as a newsletter, white paper, booklet, or e-book that we could sell via an information marketing website.2. Create Your ProductAfter you know what information you want to market, you need to develop or create a product to convey that information. In other words, you have to have something to sell. People purchase information every single day-in the form of subscriptions to magazines and newspapers, books, e-books, white papers, booklets, newsletters, and more. So you need to create a product, or better yet a line of products, that presents this information for people to buy.In this age of the Internet, even that has never been easier. You can write down all of your knowledge in some rough draft notes or simply compile a bunch of research and Internet resources to learn more about the topic, and you can find a ghostwriter online. This is a person who writes for other people as a work for hire. So you provide the research and information, this person does the actual writing and creation of the product, you pay the writer, and you own the information product. You can then pursue information marketing via your website and sell that product to generate revenue with your home based business.3. Marketing Your ProductOf course, there is more involved in the effective marketing of your information product and it is a little more complicated than just knowing it and getting it written. You will need to create a good website that is search engine optimized and can attract potential clients who are looking for your information. You will need to build a following of clients who trust that you can provide the information you are looking for before they will purchase your information.And there are many more steps you will need to complete to get your business up and running and start bringing in the cash. But the bottom line is, yes! Selling information products on the Internet is a potentially lucrative and very legitimate home based business! And it is one almost anyone can pursue!
What Are the Pros and Cons of Having a Home-Based Business?
If you are considering starting a home-based business by joining a network marketing company because the prospect of working from home appeals to you, then you need to know the pros and cons of doing so. In my opinion, the following are the top pros and cons of having your own home-based business.PRO #1 – FIRE YOUR BOSSThink of the joy you’ll feel when you are finally able to walk into your boss’ office and say, “I quit!” Technically, you will still have a boss, but it will be YOU! There is not one person on earth who cannot live with that fact.PRO #2 – SPEND MORE TIME WITH FAMILYThis pro is the crème de la crème for most people. For those who are married or have children, achieving this goal is the most important of all the pros. Being able to spend all the time with your spouse or children that you want is priceless. Imagine never missing another precious, irreplaceable moment in your little ones’ lives again! Imagine being able to date your life partner everyday! This pro is a win-win for everyone involved!PRO #3 – NO MORE PLANES, TRAINS OR AUTOMOBILESThe very thought of no longer having to commute, hop on a plane to go on a business trip and be away from family or sit next to stranger after stranger on the mass transit train is enough for most people to consider working from home a pro! The end of bumper-to-bumper traffic and that long, stressful, two-way commute is worth its weight in gold. Say goodbye to traffic jams and hello to your favorite fruit flavored jam you get to spread on your toast each morning, instead!PRO #4 – PAJAMA PARTYNo more strict corporate dress codes to adhere to. Party in your pajamas! When you work from home in a home-based business, you can wear your pajamas to the office…and you don’t even have to worry about getting reprimanded!PRO #5 – VACATION WHEN AND WHERE YOU WANTForget living for the weekend. When you determine how your time is spent and not an employer, you can go and stay on vacation for as long as you want! And what’s more, when you are the boss, you actually get a CEO salary, so you have the money to enjoy yourself while you are there, as well!PRO #6 – MONEY, MONEY, MONEY, MONEYWhen you work for someone else, your employer dictates your life and how much you get paid. However, when you’re the boss, you decide how much you want to get paid. And when you want a raise, you just put forth a little more effort, and you can give yourself one! And, you don’t have to get anyone’s permission to do so.PRO #7 – GOODBYE OFFICE POLITICSWhen you work from home, your co-workers are your computer and telephone, so there is no co-worker drama to deal with. When you are the CEO, it is impossible to be passed over for a promotion. Of course, you can always buy something nice for “the boss” to get on their good side…after all, no one knows what you like, like YOU!Now, for the cons.CON #1 – BUILDING SOMEONE ELSE’S DREAMIf you work for an employer, you are building someone else’s dream. Someone is buying your time for a lot less than what it’s worth, and what’s worse, you give them permission to do so each time you punch the clock.CON #2 – ENOUGH IS ENOUGHThere really is no bad side to owning your own business. The majority of the world’s wealthiest people are BUSINESS OWNERS. If you want what you’ve never had, you must be willing to do what you’ve never done.Owning your own business is the way to go.The pros far outweigh the cons. A home-based business coupled with an incredible work ethic cannot be ignored – positive results will come.The choice is yours.
Online Home Based Business Strategies – Earn Solid Income From Your Online Home Based Business
You might have heard or seen people starting their own businesses, or stories about rags to riches, and you would like to have your own business. If you prefer to work at home rather than working at office – probably setting up an online home based business might suitable for you. The main problem is this – how do I start earning money when I work at home? You would feel not very comfortable especially when you start your business from zero.If you’ve decided to build your own internet business – don’t be too hasty. Here’s the checklist to get started:1. Always have something to offer for your targeted audienceBefore you start a business, you need to find a niche so that you can have something to offer. For instance, finding a niche that you’re familiar with – is indeed important to provide continuous information to your readers. Starting business is not for a short while – you must have a far-sighted view and provide valuable information that attracts your potential readers. That’s the way of building credibility of your online home based business, as an ideal way of gaining trust of your readers. In short, if you’re able to build a high-credibility internet business – it’s easy to have your sales bloom, revenue increased spectacularly!2. Branding – start with a brand new name for your businessLet’s not discuss about the well-known products such as Apple, McDonalds and Prego, when you want to create a sustainable identity of your home based business. Firstly, you need to find a new name for your business and your website domain. If you couldn’t find one suitable name for it, you can think of a name related to your niche. For example, if you want to start a clothing online store targeting plus-size community, you can name it as “PlusSizeClothing101ForYou.com” – and this domain name has high-relevance to the selected niche that boosts the rankings of your website in the search engine results page (SERP).3. Market your online home based business at the right channelBesides focusing on what you’re offering to your audience, you need to figure out a solid way to promote your internet business. There are two ways to market your website – Pay-Per-Click Advertising (PPC) and article marketing. You can try one way or both, to drive traffic to your website. High-targeted traffic is the most concerned factor to get the right group of visitors, who are highly interested at your product, service or business – thus, such traffic is the key success of prolonging your online home based business. Always remember the following line – “No traffic, no sales, and no joke!”With all the hard work and perseverance, applying these tips above could bring positive impact on your internet business – making your business prosper than ever!
Home Business Opportunities – Four Home Based Business Opportunities To Choose From
Home business opportunities are virtually everywhere you look online. And the promoters of each home based business opportunity often claim that the opportunity they promote is the best business opportunity to join. This often makes it difficult for newbies to make the right choice, the choice that best suit their situation. This article takes a look at the four broad categories of home business opportunities so you can identify the option that suit your circumstances and therefore make informed choice.The four broad categories of home based business opportunities are:1. Opportunities that involve building an information rich web site from scratch and thereafter monetizing the resulting traffic2. Opportunities that involve joining affiliate programs that offer unique affiliate links for promoting the affiliate product or service3. Opportunities that involve joining a network marketing home based business opportunity that offer free distributor web site to members and4. Opportunities that involve getting paid a fixed amount for completing a set of tasks onlineLet’s take a closer look at each option above.The first online business opportunity involves building your dream online business from scratch.The right process requires you to do the following:
identify your passion
brainstorm topics that fall within your passion or interest using appropriate brainstorming software
identify a profitable niche that matches your passion or interest
Assemble low competition keywords that define your niche
Draw up a site blueprint
Design your web site
Write content for your web site using the low competition keywords brainstormed earlier
Promote your web site massively online
Add income generating streams to your web site
Cash your money month after month
If you conclude that the above process is tedious and time consuming, you’re probably right.But why?It’s because it’s business… it’s online business. And online business takes time, effort, and creativity just like offline does.The second home business opportunity mentioned above is affiliate program marketing. With this type of online business, you join the affiliate program of your choice and promote the affiliate links you’re given using a blend of online marketing techniques. Some online marketing techniques will produce more results than others. So, you need to track your sales promotion efforts or campaigns to determine what works and what doesn’t for the specific affiliate program you promote. Then drop campaigns that don’t work and do more of what works.The third category of home based business opportunities are MLM home business opportunities that offer members free distributor web sites to promote the MLM business opportunity. As with the affiliate program model, members of this type of MLM business opportunity promote their member web site url and register new team members using the tools on the member site they were given.The fourth online business opportunity involves completing a set of tasks in expectation of being paid a pre-determined amount.This kind of opportunities include:
paid to write
paid to attend to customers (online customer service jobs)
… and other such online job opportunities.WARNING: Verify that the internet job opportunity you’re interested in is legitimate before you join!Each of the home business opportunities described above have their pros and cons.Option 1 above requires you to do a lot of work without immediate reward. With this type of online business, you’re basically writing an online book or journal. And you don’t get paid for writing a book until it’s finished and it starts selling, right?In simple words, this option is a long-term business where you build traffic or your own customer base through content writing and marketing. This is a tedious but rewarding way to build a long-term business. With this type of home based business you own your traffic or customer base. And when you own your traffic, you own your business.Option 2 is affiliate program marketing. This system involves selling a product or service by finding a market for it. Depending on where you advertise or promote the affiliate programs, you can begin to make money right away.Here’s one thing to remember though.Not everyone makes money from promoting affiliate program products despite spending a lot of money in advertising.Why?It’s because affiliate program marketing success requires a set of skills. To succeed, you need to learn the skill-set that guarantees success. Option 3 is much like option 2. You get paid for promoting a network marketing opportunity.However, unlike most affiliate program opportunities that are free to join, virtually every network marketing home based business opportunity require members to join with a registration fee. Besides the registration fee, members must buy at least one pack of the MLM product they promote every month to stay active and qualify to earn commissions (at least in most programs). This means there is a maintenance cost for most MLM business opportunities.Option 4 is the most direct form of online business. You get paid to complete a set of assignments. The problem with this is that it’s like having a day job… when you stop working, you stop earning. Whereas with the other kinds of home business opportunities discussed above, you can build your business to a point where what you earn far outweigh the efforts you put in. And you can put your business on auto pilot.What home business option is right for you right now?It depends on your current circumstances. In my candid opinion, the overall best option is one that allows you to build a long-term business and put your business on auto pilot down the road.I’m talking passive income!Bottom line.It’s your life. Choose how you want to live it.Choose the opportunity that works for you.
5 Tips for Small Business Success
As a small business, we face certain challenges that can add stress and anxiety to our daily lives. It is not always easy meeting payroll, hiring, figuring out what platform to market on and managing the finances. But, millions of small business owners do these things every day and their businesses thrive.Here are 5 Tips for Small Business SuccessWrite Down Why You StartedAs a small business owner, you may find yourself living on a rollercoaster. Some days you feel like you are going to take over the entire universe while other days you fire yourself and walk off the job. And, early on in the small business process, you have more firing and walking off the job kind of days. It is in these days that you must remember your “why.” Why are you doing this? Why are you so passionate?During the days that you are “taking over the universe” and are more clear minded, write down the answers to those question so when you get discouraged you will remember why you started and you will be less likely to give up. List out support systems and create vision boards so that when times feel dark, you know who you can reach out to and have a physical vision of the direction you want to go.Step AwayAs a small business owner, you probably take your work home, talk to your partner about it, and answer calls on the weekends. But never taking a step away can lead to burnout. The last thing a business owner should do is make decisions based on feelings like stress, frustration and impulsivity. Working on you and/or your family independently of your business is a great way to refresh and gain clarity so you can be even stronger in your business. Successful people take breaks.Give yourself at least one day a week where you step away completely. Set boundaries with clients or customers and they will respect your time even more. If you really feel that you cannot take one day, start small with time away. Take 30-60 minutes at least one time per day to do something that clears your mind. Do not answer business calls during this time, instead, try something like getting in touch with nature, taking a bath, or working-out. The better you are to your mind and body, the clearer decisions you will make for your business, clients and customers.Hurdle the Tough Times Quickly & Learn From ThemAs a small business owner, you are learning something new every day. Business owners switch hats all the time; from finances to legal to day to day operations to HR. And, it is no secret that mistakes will be made.If you want to be successful in business, don’t ruminate, internalize and dwell on those mistakes. Instead, chop it up to a learning lesson and press forward being cautious not to make that mistake a second time. Hurdling barriers and setbacks quickly will help you to minimize your stress and preserve energy in order to continue growing your business.Get a MentorSo many people have been in your shoes before you. They know the puddles you should not even try to step in and they can also give insight into decisions you are facing.Reach out to these people and ask them for their mentorship. If you do not have a mentor, try networking to meet likeminded people that can share ideas with you. However, as your business grows, if you do not have a mentor, keep your eyes open for someone that you can call on for support. Most successful people want to help you grow and develop and will be glad to guide you. Just make sure that you are open-minded when your mentor talks with you and that you come with questions or a direction to the meeting as to not waste their time.Make Sure You Have Financial OptionsWhile you switch hats, ride the rollercoaster, take calls from customers on days off, and try to somehow maintain life balance, the one thing a business owner must have peace of mind and security with is finances (personally and professionally).As a small business, make sure you work with a banker or company that is transparent and that you can trust. As your business grows, there will be growing pains, and that is a good thing, especially if you have a banker or lender who supports small businesses and simplifies things. Be sure to speak up to your lender about various types of resources, loans, business credit cards, and cash advances that best fit your niche.
Some Advantages of Home Based Business
The Home based business is not uncommon in today’s modern society. A lot of people do it because for them it is easier and more convenient. They don’t have to leave their homes and go to the office or work place. They don’t have to follow an 8-hr shift at the work place where they have to clock-in and clock-out. Working from their homes, they can do all the things that they want at their own pace and time. That is what most people want right? It is to be able to work at your own time at your own place. That is how a home based business works which is why knowing its advantages is a good idea for those who are interested.
The first advantage of home based business is that you are the one controls your business. If you are the one who started the business, then you are the head. It means that everything that goes on with the business is controlled by you. You may have 2 or 3 people working under you but it is still your decisions and words that must be followed. The second advantage would be it would be cheaper. It would save you on fuel and energy since you don’t have to go to the office. As we all know transportation expenses are very expensive nowadays.
The Home based business also has advantages because of personal reasons. One of the disadvantages of working for a boss in a business is stress. The office or work place environment can stress you out. The people around you can just add up to your stress and headache. But if you are working from home, the stress level would be less because that is where you are comfortable and you have your own privacy. A lot of people are more productive when they do things at home. That is another advantage. If people are happy and comfortable in their work environment, they will be able to do more and work well.
There are more advantages if you do business at home but before starting anything and leaving your job, you must have the proper training or coaching first. You need to know how to get started and how to go about it. There are websites and people who are willing to help those who want to start doing business at their home. If you want to start your own home based business, then you must know the basics so that your base is strong enough and your business will grow and run smoothly.
If the idea of working from home and running your very own home based business interests you, then you should carry out research first. What I mean is, do a search on Google for something that is of interest to you, you may lets say like fishing or hunting, then search the fishing and hunting websites, see what’s on offer. You will probably come across websites selling products that is related to this niche. One thing that springs to mind is why not write an eBook on your chosen niche, explaining how something is done, IE setting up a fishing rod the proper way, you get my meaning.
Then the next thing you could do to build your home based business is become an affiliate for products related to your niche, why not build a membership site where you get get people to pay a monthly fee to be part of your of your club? You could offer expert advise and tips on where to fish or hunt, what the best product are, even do reviews on them. There are many ways to make money from this niche alone, it is endless. So my advise to you is build your home based business around your interests. It can be hard work to start with, but once you have done your research and laid your footings so to speak, your home based business will flourish
Advantages of Advertising on the Internet
Everyone understands that the purpose of advertising is to raise the profile of your business and to draw in those elusive potential customers. While methods of advertising need only be limited by your own imagination, it seems obvious that choosing the correct method can make a world of a difference to the impact on your business. When considering this crucial decision of how and where you should advertise, there are 3 key points to consider:
Will this form of advertising reach my target client group?
How much will this advertisement cost me?
Will I see a return on my investment?
When considering these key points, it’s impossible to ignore the potential advantages of advertising online. Internet advertising has become the first choice for many businesses due to the potentially significant benefits it can afford. Here are just some of the reasons why advertising online could be the right choice for you:
Be Kind to your Wallet
Your advertising and marketing budget will dictate how much you can afford to spend on adverts for your business; television, radio and perhaps even print advertisements may be out of your reach. The good news, however, is that many business owners are discovering that internet advertising is an affordable option. When you see colourful, dynamic, eye-catching advertisements online, don’t assume they’re out of your price range. You’ll be amazed at how much you can get for your money when you advertise online.
Ready, Aim, Fire!
Just as print advertisements are aimed at a specific target client group (you’re unlikely to see an advert for the latest mascara in Men’s Health), internet advertising is targeted towards those who are potential customers for your product or service. You have ultimate control over when and where your articles will be displayed meaning that you can manage your advertising effectively for maximum exposure and impact.
The World is Your Oyster
Your website is like your virtual shop window. It allows you to have that shop window viewed around the clock in every country in the world. The potential to get your business noticed above and beyond your expectations is simply staggering! Where the limitations of a print or a television advert are obvious, equally obvious is the limitless potential of putting your business on a global stage and then showcasing your products and services to a potential audience of billions.
Track your Success
One of the main advantages of online advertising as against traditional print adverts is the ability to track your conversion rates. This means that you can find out exactly how many people have viewed your advert and how many people come to your website as a result of a specific advert. The benefit of this is clear; if you know an advert is working for you, you’ll want to continue with it. If, on the other hand an online advert is failing to bring you any return you can discontinue it and switch to another more beneficial strategy.
Stay Flexible
One of the difficulties posed by using printed leaflets and pamphlets to advertise your business is that once they’re printed up, you’re stuck with them. Advertising online gives you the flexibility to make changes periodically and this can save you money (no expensive re-print), whilst continuing to create and maintain interest in your business by highlighting specific events, special offers and perhaps items or services that are particularly relevant at any given time. You’re likely to find that minor alterations to your advert will incur very modest charges and in some cases, no charge at all.
The Finer Points of Internet Auctions
WHAT IS A PENNY AUCTION?
Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.
The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.
The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.
The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.
HOW PENNY AUCTIONS WORK!
The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.
There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.
Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.
HOW TO WIN!
Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.
The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.
The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.
The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.
HOW TO AVOID SCAM SITES!
Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.
Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.
Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.
CONCLUSION!
New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.
There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.
It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.
How to Find Great Live Auctions for Resale Items
Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.
I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.
Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.
There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.
There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.
Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.
There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.
Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?
Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.
Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.
A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.
Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.
When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.
When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.
Hiring An Auction Company
Estimating your assets value:
Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.
Compensation and Expenses:
Is the company you are considering working for you or against you? The agreement you decide may determine this.
A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.
In a straight commission structure, the company is paid an agreed upon percentage of the total sale.
In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.
In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.
In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.
What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.
Auction Expenses:
In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.
All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.
Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.
Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.
Buyer’s Premium:
What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.
The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.
It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.
Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.
Pre-Sales:
We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.
As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.
Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.
A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.
It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.
When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.