Are you sure the business you’ve chosen is a legitimate home based business? It’s true that home based businesses are fast becoming the norm, but it’s also true that there are hordes of business opportunities that are simply meant to exploit you. So, you have to be careful and not blindly fall into the temptation of earning millions in a month – a favorite claim of most frauds.Look For Reputable BusinessesYou may not want to get associated with a company that nobody knows about. The business that’s being around for a substantial period of time and people have stake in it is more likely to be a legitimate home based business than any other.Don’t Expect Riches OvernightFace the truth: no legitimate home based business has the power to make you rich in a short period of time. So, stop building castles in the sky. Have a down-to-earth approach and be ready to work hard with full commitment. In due course of time, your business will pay.Contact Better Business BureauBetter Business Bureau is a body that regulates businesses. Any legitimate home based business will be registered in this bureau. All the complaints and compliments about businesses are recorded here. So, this is the best source to check the credibility of any business.Try ItYou can’t create a successful business without taking risks. So, the best way to find a legitimate home based business is to try it out! If the product or service the company is offering is up to the mark; if they are providing a timely delivery; and if everything they have claimed is turning out to be true; congrats! You’ve found yourself the best business!It’s no harm in spending $20-$30 in signing in, as demanded by the business, to check out its credibility. Even if it turns out to be a scam, you haven’t lost a huge amount of money.Check Out The Payment PolicyThis is important. The time and mode of payment has to be made clear before associating with any business. Usually, illegitimate businesses mention all sorts of senseless small print. You should check out for what jobs they will pay you, what their minimum payouts are, how often they pay out, etc. This is not difficult to determine thanks to a slew of sources online as well as the local library.Remember, you need to scrutinize every aspect of the business opportunity before saying “yes” to it. A legitimate home based business might require some efforts to find it; but once you do find it, you’re headed towards the path of success!
Job? Why I Chose A Home Based Business
For years, people have asked me why I don’t get a “regular job”.They seem to struggle with the idea that I don’t have a 9 to 5 job and they just can’t figure out why I don’t like getting up early, complaining about Monday mornings, “working for the weekend”, etc…I could go on and on about how much I love the freedom, the option to set my own hours, the possibility of creating an incredible amount of income, and they would all be really good points.I really do enjoy sleeping when I get sleepy, getting out of bed when I feel like getting out of bed, traveling when and where I like, and knowing that my income is happening around the clock and around the world.And I’ve definitely got some big goals. Yes, some of them are related to the type of cars I would like to drive, the homes I would like to live in, the experiences I want to have, and all that fun stuff. Why not?But let’s break this down to just some good old fashioned “real world” thinking.If you give any serious thought to what is happening to the economy, the job situation, and what life is starting to look like for people from just about every walk of life, I personally believe that it makes sense for you to be honest with yourself. If you really do the math, I think you will gain a much better understanding of why I started my home based business.These days, if you have a job at all, you are considered “lucky” by those who are unemployed. But let’s take a serious look at what a typical job scenario is like for most people. We’ll make a few assumptions, such as:You’re working a job that pays you $15 an hour.
You’re working 50 hours per week.
You’re getting paid for 52 weeks out of the year.
This gives you a gross annual income of $39,000.With some standard assumptions about taxes which include you being a single person with no children, your tax bill is going to be about $4,000, making your Taxable Income $35,000.This means you get $35,000 deposited in to your bank account each year and you trade 2,600 hours of your life every year to get that money. That, alone, is a rather sobering thought in my opinion, but let’s keep going.We need to make a few more assumptions about what it takes to live the life you are in. Your numbers may be more or less than these:Expenses:
Monthly Rent/Mortgage $1,000
Utilities: $300
Car Note: $300
Car Insurance: $100
Fuel: $200
Groceries: $600
Monthly Totals: $2,500
Annual Totals: $30,000These numbers do not take in to account anything beyond the very BASIC living expenses! You are literally trading 50 hours of your life every week and chances are, you have more month left over at the end of your money. You’re not alone. If you are paying off a student loan, paying for credit card bills, have a car repair, unexpected emergency, health insurance, doctor visits, clothing expenses, etc… you can see how this gets way out of hand very quickly!When this sort of math settled in on me while being married and raising FIVE kids, I realized that I needed to do something else and I needed to get started FAST!So What Did I Do?I started learning about home based business and discovering how I could leverage my then limited time and financial resources to change my financial picture. For me, it has been one of the best decisions of my life. I’ve been successfully unemployed for more than 14 years. I’ve been able to be present with my family, coaching basketball with my kids, traveling with my family, and actually BEING a husband and father.I don’t look back on my life and wish I had spent more time with my kids because I was THERE with them throughout their lives. To this day, we are still very close even though they are all grown up, moved out, and pursuing their own life goals. (They all understand and are working on their own home based businesses, too!)Not everybody starts a home based business to “get rich”. Some folks just want to create some additional income. Some folks just want to set up a “Plan B” in case their job falls through. Others just want to supplement their income or pay off some bills and yes… some of us want to create a life we are really excited about and can afford to live on our terms.If you see this math and you believe that it makes sense to stay on that same path, then you need to understand that things are going to get tougher. But if you believe that a home based business may be a good option for you, then I encourage you to start your research. Find someone that is successfully building their home based business and ask them to show you howIf you saw the move, “The Pursuit of Happyness”, t hen you may recall that Chris Gardner’s life was changed by asking two questions of a very successful broker:1. What do you do?
2. How do you do it?Be willing to ask the questions and then learn the skills.A home based business may very well be the solution you need.
5 Secrets That Will Thrust Your Small Business Into the Big League
There are 28 million small businesses in the US. The sad reality is that most of them fail within the first few years of operation. The small percentage that survive stay small forever. A select few manage to grow into huge businesses. But why them and not the others? What are the factors that enable unknowns to become household brands? One thing for sure that it takes much more than hard work, luck, and timing. Read on to see if your small business has what it takes to make the leap into the big league?SystemsMany small business owners’ lives are chaotic due to lack of systems. Systems are hard, but they enable small businesses to scale. Systems are not glorious like sales, marketing, or research and development. Some say that systems are boring, after all, it is a back office function. Systems separate struggling small businesses from those that grow by leaps and bounds. Creating systems can be a daunting task, and for many, the prospect of taking on yet another project is out of the question. For some, it is a catch-22 situation. You may say “How do I carve out extra time from my already hectic schedule.” The correct way to think of systems is that creating them is an investment in your business.One of the greatest challenges that small business owners face is that the they are perpetual decision makers. The owner is involved in everything from sales, customer service, research and development, bookkeeping, so an and so forth. Creating systems is the first step toward a business where not every decision is dependent on the entrepreneur. Systems allow people to plug in and go. Systems include operating procedures and manuals that can bring a new team member up to speed in no time. It is what takes small out of small business.Franchise businesses are often more successful than independently operated ones simply because they are built on systems. The franchisee may be paying a premium in upstart costs compared to an independent business, but it makes sense for many because they don’t have to worry about developing systems. Someone already went ahead and created the necessary systems for success. When you buy a franchise you are taking a system that has been proved to work. Does it mean that you have to buy a franchise to succeed? Absolutely not, but you have to think of your own independent business as a franchise. Create procedures for everything. Don’t leave anything to guesswork.Most small businesses do without systems, but it doesn’t mean that it’s a good idea. While you might get away with it in the beginning the lack of systems will create huge bottle necks down the road. The lack of systems will reduce your profits. Why? Because you and your employees will have to reinvent the wheel day in and day out. systems minimize the element of surprise. With systems in place your team is able to deliver consistent service. Businesses with consistently good service will outperform those with fluctuating quality service.In addition to making your life easier, systems also increase the value of your business. Buyers want to buy businesses that are built on systems. The presence of systems tell buyers that the business doesn’t entirely rely on you. Creating systems help you create a turnkey operation, appealing to buyers. Business systems are assets that enable your company to run without you.ScalabilityInvestors love highly scalable companies because they have the potential to multiply revenue with minimal incremental cost. You simply can’t substantially grow a business without cracking the scaling code. Some business are built to scale while others are forever destined for small business status. Unfortunately, many professional service providers are not scalable because they rely on personal output. So, if your goal is to build a big company avoid consulting types of businesses. A software company, on the other hand, is a highly scalable business model. Once the software product has been completed it can be sold millions of times with minimal costs. In other words, their increased revenues cost less to deliver than current revenues. What this means is that a scalable business will be able to increase the operating margin as revenue grows.A highly scalable business requires small variable costs that the company can control. Variable cost changes with the volume of business. Fixed costs do not vary with sales. For example, for a software company fixed costs include the cost of the office location, computers, and furniture. These cannot be quickly added or liquidated. Salaries on the other hand are a variable cost since workers can be hired and fired relatively fast.Most consulting businesses like marketing agencies are not scalable because they are unable to substantially increase their revenue without greatly increasing their variable costs. Such businesses are considered poor investments.To build a scalable business you should start with a scalable idea. Scalable businesses have high margins. They require low support and staff expenses. Scalable businesses allow you to work on your business as opposed to working in your business. If you find yourself constantly working in your business your business is either not scalable or not yet ready to scale.Truly scalable businesses are highly automated. Automation helps you reduce variable costs such as labor. It is at this point when scaling and systems begin to work together. If you truly want to become a market leader or dominate your industry, scalability is the only way to do it without a miracle.Board of advisorsIf your goal is rapid growth, you must have a board that you can rely on for your big audacious goals. The life of an entrepreneur can be a lonely one. Often you feel like you are all alone with all the decisions you have to make. Your board will share some of the burdens of making key decisions and it will tell the outside world that you are systematic about your business, and that you understand that you need to surround yourself with people that are smarter than you. Your board will help you with large strategic goals. It can help with your overall business plan, policy issues, financial questions, strategic partnerships, and more.Your board shouldn’t be utilized to deal with routine tactical challenges. Don’t waste the boards time on daily employee issues or what color the chose for your new office. Rather, let your board help you with strategic advice, or by helping you with making introductions to strategic partners and recruiting talent.Fellow entrepreneurs and business leaders make excellent board members. Before you build your board you should have a clear understanding of what areas you need help with. Ask yourself what skills do you currently lack that you need to take your business to the next level? Is it marketing, intellectual property, or finance? Whatever it is you need help with should influence the ultimate makeup of your board. You could hire a recruiter, but they are expensive. It is best if you perform the search yourself.Your board is not a group of your closest friends. It is a group of professionals, each with a respective specialty. One might be an IP attorney while another a retired CEO. You are not looking for a group of yes men. If you build a great board, each member will have more experience than you and each will know much more than you. If you feel like the dumbest person in the room, you are on the right track.Your board of advisors will not join you for the money, but there are costs involved. It is a good idea to compensate your advisors. At least, you should cover their expenses. Do they need to travel to your board meetings? Are there hotel and other expenses? It is also advisable to pay a per meeting fee that might be a few hundreds or a few thousand dollars. In addition to monetary compensation, you could chose to offer stock as payment.IP (Intellectual Property)Most small business owners care most about time and money. Some understand that IP is as good as money in the bank. It is considered one of the most important assets of some of the most valuable companies in the world. Even though IP is an intangible asset, it’s almost impossible to build a hugely successful business without it. If you are going to dominate your industry or at least be one of its key players, IP is a must. You can often read about huge business acquisition deals structured around IP. Often, IP is the reason companies are bought and sold for huge multiples.Simply put, IP makes your company more competitive. Without IP you end up competing on price and efficiency, a tough way to build your business. When you compete through IP you often set your own price, a luxury most businesses never experience. Since innovation is the main driver in business, developing IP should be a key objective for all companies that want to enter the big league.If you are an early stage company wanting to attract investors, your IP might be what closes the deal for you. Investors look at IP with regard to the level of income it may generate through its life. Some companies bet their futures on IP. Richard Thoman, the CEO of Xerox, declared that the “management of IP is how value added is going to be created at Xerox.” An excellent example of IP management is IBM; it managed to generate about $1 billion from IP by 1990. IP is the intangible asset that can become your free cash flow.When IP is properly managed it can prevent your competitors from copying your products or services. You can avoid wasteful investment in R&D. IP is a revenue generating profit machine that makes your company more valuable and competitive, getting you ever so closer to market domination.BrandMany small business owners, wrongly believe, that brand building is reserved for giant corporations. But, building your brand should be a key focus from the very early stages of your company’s life. Your brand is another intangible asset you can’t build a market leading company without. It is your brand that may enable your business one day to avoid competing on price only. It is your brand that may one day help you dominate your market. It is through the power of your brand that you will be able to minimize your new customer acquisition costs.Successful brands are easily recognizable. Virtually all fortune 500 companies have managed to build a strong brand image. Powerful brands instill certain images in consumers from tradition, to quality, to innovation, to any number of thoughts and feelings. As competition increases, so does the importance of building credible brands.Brands are not born out of thin air, they are strategically developed. Building your brand is no less important than developing your sales strategy or R&D. The process of building your brand is a never ending job. There is no such thing as a finished brand. Finished brands are for businesses that are finished. You can never think of brand building as a project with a beginning and an end.While advertising is important it is not advertising that creates your brand. Your brand is a reflection on everything that your company does. Your brand is the quality of your product or service. It is also the way you treat your customers, and even your employees. Your brand is shaped by how the world perceives you.The value of each brand fluctuates. Your company scores big on your latest product and the value of your brand rises. One of your employees publicly ridicules one of your upset customers and your brand suffers. The good news is that for the most part, you are in charge of your brand’s destiny.Even the worlds greatest brands are not always on an upward trajectory. Strong brands can help your company survive disasters. Recently, the Toyota brand had been plagued by millions of recalls, yet the company managed to come out of it all with an even stronger brand.It is true that not each small business wants to become an industry leader. But, it’s also true that there are no accidental market leaders. Most small businesses are family owned and operated, and there is nothing wrong with that. You can be happy, fulfilled, and wealthy running a small business. But, if your choice is to grow your business into a true market leader you have to build your business on systems. You have to be able to crack the scaling code, so you can dramatically increase your revenue with minimal expenses. You will need trusted advisors that are smarter and more experienced than you. It will be an uphill battle, or perhaps even impossible without proper IP management. Your brand will soften the blow when you are hit with disasters. Of course, there are other factors such as luck and timing that transform small businesses into huge success stories, but the above five make for a good start.
The Rise Of B2B Inbound Marketing
Is all the hype about B2B inbound marketing justified? Does inbound marketing deliver more high-quality sales leads at a lower cost? This article considers those questions and compares inbound with traditional outbound marketing.
There is little doubt the effectiveness of traditional outbound marketing is in decline. Consumers are more resistant to push marketing techniques than ever before. With the rise of the internet potential customers are much more likely to seek out the information they need. They are likely to consider the reviews and comments of their peers online as an input to their decision-making process.
Bad practice and overuse of outbound marketing techniques such as telemarketing and Email marketing have built a strong resistance to these techniques. There is a general cynical response to advertising and the use of printed media is in decline. All of these issues have contributed to an ongoing steady decline in the use of B2B outbound marketing.
As outbound marketing has declined B2B inbound marketing has filled the void. Much of the marketing comment online now relates to the effectiveness of pull marketing. However, as with any new shiny marketing object, an element of the comment and discussion is overhyped.
A B2B inbound marketing process delivers useful, valuable and engaging information to prospects. It allows them to make informed purchasing decisions.
The information is not pushed in the direction of the prospect but strategically placed. So it has the best chance of being found and read by the target prospect group.
The information is not designed to be sales message based in any way but designed to be helpful and engaging. Much of the information will point back to a website for more.
The purpose of inbound marketing is to inform, build credibility and ensure the business is front of mind. Unlike outbound marketing, it is not invasive but relies on the prospect coming into the business to learn more.
The quality of inbound leads is therefore much higher with pull marketing than with outbound. The lead is also more likely to come at a later stage in the sales process.
There are however some major issues with inbound marketing that are rarely touched on.
The process does not deliver short-term results and it is resource-intensive. This means many businesses that start the process stall before they achieve meaningful results.
The process also requires a significant new skill set which can mean either re-skilling or outsourcing marketing at least on a short term basis.
Outbound marketing is not dead but only changed. Many traditional outbound techniques are modified to support the B2B inbound marketing process. They can speed the process along and improve results. What is required is a mix of the best outbound and inbound marketing can offer and not more hype.
Sound Advertising
Audio advertising is growing at a fast pace with more and more advertisers opting for audio classified ads. It’s no secret that a good sales headline makes all the difference in advertising and it’s no different when talking about great audio advertising. Professional voice talent and recognized studio engineers come together to create top quality audio advertising spots.
Interactive audio advertising is generating enormous interest within the advertising community.
Websites
At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users.
Most Audio networks “crawl” websites in its list of publishers, prior to placing a single ad, to determine the content of Ad best suited to the visitor based on the page content they are seeing while the Ad is playing. For example, your audio ads are placed on websites that users can relate too, such as sports drink ads, sportswear and sports gear on a NFL information websites.
Advertisers
Audio advertisements have gained national media attention from national mass-market advertisers, the Wall Street Investment Community and discussed in the Wall Street Journal. Currently this new online audio advertising provides advertisers with a new procedure to promote.
Not just for major advertisers, but small niche advertisers like local business can use audio ads for local and regional advertising too. Ads for audio content, such as pod casts or Internet radio stations, often use a “reservation” model, where advertisers reserve spots in audio streams for confirmed fees.
It’s possible that this reservation model may not maximize revenue for audio publishers because many advertisers don’t have the wherewithal to negotiate agreements for ad spots and don’t compete for them.
However, imagine an Ad Network where advertisers and publishers can interact, and pay-per-action type advertising becomes a possibility. A publisher would set upon criteria for advertisers to match, and the system would determine which ads to play based upon relevancy and price. Now, forward-thinking advertisers are recognizing that if it works on radio, it can work on streaming audio.
Advertisements
Many advertisements are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty.
In an effort to improve messaging, and gain audience attention, advertisers create branding moments that will resonate with target markets, and motivate audiences to purchase the advertised product or service, advertisers copy test their advertisements before releasing them to the public.
These short advertisements, allow the spoken words or most recognizable sounds to be presented to a visitor browsing the Internet. Another major advantage of radio advertising is that it is inexpensive to place and to produce, allowing small business owners to place advertisements on more than one station in a given market.
Changing Markets
However a relatively new company has recently been written about in the Wall Street Journal. This is a company that provides five second ‘radio station’ style advertisements played automatically to people browsing the Web when they visit a participating website. The advertisements are played immediately to the listener based on their geographical location… not on the location of the website being viewed.
In a sense the network is just like a radio station. A radio station broadcasts commercials through the speakers of a radio to people in their local area. This company broadcasts commercials to people in any local area (or nationwide or worldwide) through computer speakers.
For example, as a real estate agent, you could broadcast your message to 500 people per day in the North Palm Beach, FL area at a certain time on certain days. Or a restaurant owner from The City of London, England could advertise today’s lunch time menu to people that live in The City, between 10 o’clock and midday.
The company has grown enough to gain the attention of candidates running for President of the United States (among many other political campaigns), and political ads are scheduled run on participating websites across the Internet.
These short advertisements, known as “Adlets”, are now available to listeners over 30 million times a day on websites large and small, worldwide. Participating websites are scattered across the Internet giving advertisers a wide range of demographic exposure. When any Internet visitor hits one of their participating ad sponsored websites, the audio commercial starts playing instantly.
However there is a big difference from radio…
The Advertiser can target…
The Advertiser can choose the time and frequency that your ads play…
The advertisement is played as soon as the visitor lands on the web site page, so the Advertiser has the undivided attention of the listener.
One of the best things about Internet audio advertising is that it doesn’t take up any of your website real estate.
With the massive reach established by their network of tens of millions of Website pages, online audio advertising is certain to become a staple in any advertising campaign, especially ones that target the ever-growing Internet population.
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.
Five Tips for Selling at Live Auctions
Ah, the old-fashioned country auction! The idea of a country auction conjures up certain images for people. The image of a fast-talking auctioneer offering up an antique table or chair is a popular example.
People who are buying household goods or collectibles are looking to get their items at the lowest price possible. However, the people who are selling their items at auction are hoping for the highest price!
Unless a person is in the business of buying and selling antiques or other items, not a lot of thought goes into how goods are prepared for sale via the auction process. However, if you are one of the growing number of people using auction venues to sell your collectibles or other inventory, there are a few things to learn first about how to sell at auction before you bring a truckload of stuff over to the next event.
Tip 1: Make sure the things you want to sell are a good “fit” for the auction house you’ll be using.
Never bring a load to an auction house without actually having been to one of the previous auctions. It’s important to get a feel for the type of goods that the house sells. For example, at one very rural country auction it was common for the owners to sell live chickens, pots and pans, car parts, and farm equipment.
After close investigation, this would not be the right venue for selling your daughter’s “Hello Kitty” collection. On the other hand, the spare John Deere parts that you bought at last week’s yard sale might be just the right thing for the buying crowd at this auction.
Tip 2: Be sure you clearly understand the terms and policies of the auction house.
Visit with the auctioneer ahead of time. Call to find out what the best days and times are to visit. One of the worst possible times to drop in for an informational visit with an auctioneer is the day of the auction. Call ahead and ask. While you’re at it, find out what are the best days and times to drop your stuff off.
Once you have a little time with the auctioneer, you’ll be able to find out what type of commission he or she takes from consigners (which is you), and what type of paperwork might be needed. Some auction houses send out Form 1099 tax forms at the end of the year. An auctioneer may need to see your identification and have you fill out a W-9. Be prepared.
Find out what happens to your items if they don’t sell. For example, some auctioneers may have a minimum starting bid. If, for some reason, one of your items does not sell, it may be grouped with another one of your pieces. Know the auctioneer’s strategy beforehand so that you aren’t surprised on pay day.
Tip 3: Make sure the auctioneer knows what you’re selling.
It might be perfectly obvious to you that the signed print you are consigning is a rare and valuable piece of art. However, the auctioneer may not know this particular artist. Make a note of anything particularly special about your items, and leave the note with the piece. Be sure to tell the auctioneer about it as well. He or she might determine that this is something to highlight on the company website or in the newspaper listing.
Tip 4: Present your items neatly.
No one likes to have to dig through a box full of grimy and greasy car parts to see what treasures might be in there. Separate the parts and lay them out on a flat, or use more than one box to de-clutter the lot.
There is no need to buy fancy display boxes. It’s easy enough to go to the local convenience store or supermarket and ask if you can have the emptied boxes or flats that they are discarding.
While it’s good to present clean items, take care not to ruin the value of anything by over cleaning. For example, if you find some old cast iron cookware, clean the obvious dirt and grime, but don’t scrub it to its original finish. For many people, this ruins the value of the item. So, clean and tidy and organized is the key here.
Tip 5: Don’t complain to the auctioneer if your stuff doesn’t sell for as much as you’d like.
The phrase to remember here is, “You win some; you lose some.” That’s just the way it is. There are some days where an auction house is loaded with people who all seem to want what you’re selling. There will be other days where the crowd is sparse, and the bidding is simply not competitive.
Remember that it’s in the auctioneer’s best interest to sell your things for the highest possible hammer price. But sometimes, it’s just not going to be a stellar sale. The auctioneer is only human, and is also disappointed if a sale doesn’t go as well as planned.
If you notice that every time you bring a bunch of goods to sell that you’re not realizing as much as you think you honestly should, try another auction venue and compare apples to apples. That is, bring the same types of items to the new auctioneer and compare the results.
Unless the auctioneer is particularly disagreeable or inconsiderate to you or buyers, there is no reason to confront him or her about a sale. If you find you just don’t care for an auctioneer’s style or methods, find another one. Believe me, there are plenty of them out there!
The primary thing to remember as you learn how to sell at auction is that the business is unpredictable at best. You will have good days, some not-so-good days, some great days. The more you sell, the more experience you will gain, and the more enjoyable the business will be.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.