Many are struggling in the crazy economy. There so many who don’t know what will happen next. When they say it’s getting better for some it seems to get worse. Individuals are being fired, laid-off and just told we can’t continue to keep our doors open without customers. The question that many are asking is what can anyone do to survive. I think that we must all come together. It’s a matter of our existence as humans. If we don’t come together we will all fall. Recently, I notice a growing trend, people joining home based businesses to make a few extra dollars. Some have made more than just a few extra dollars, they are making a living. They have replaced their 9 to 5 for the home life and an income. Is this possible for anyone or is it just for a few fortunate people being in the right place at the right time. I believe that if people would come together and trust one another this can become a reality for them. I really think that a new approach or home business model may work better than some of those in the past. For example, instead of joining one home based business as a individual try joining one as a group. What I’m saying is working together in one home based business may reduce failure and the home business fatality rate.Research has shown that 90% of the people who start a home based business fail within the first year. What I’m saying is that I noticed I can see the growing trend of people joining home based businesses as well as people failing over the first year. The trend of failing could be because of the old approach. That approach go something like this, one person joins a business then he tries to recruit 3 or 4 friends that don’t have any money to get in. Then the person that join looses money due to the monthly products he had to buy and the lack of members in his home business. I believe that in a good economy or a bad economy if we look at things differently this could be reversed. I have listed 10 steps that could reverse this trend. These 10 steps are based on working together at all cost. This would be cost effective and profitable. I call this the internet survival home business plan.1. What you want to do is get about 4 or 5 family members or friends together.2. All will present companies that they would like to join, but all will only agree to join one home based business that you all researched. One person’s name will be submitted as the owner of the business. It has to be this way because 4 to 5 names can’t be listed.3. All the members of the group will pitch in evenly for the start-up fee.4. All the members will recruit candidates to join the business, not the group. The group will always remain at 4 or 5 members.5. As a team you will pick who will be the best candidate chosen for each leg of the business. Again, this is for the business, not the 4 to 5 man group. These are new recruits, individual(s) that will be joining the your business.6. It very important to choose go-getter to head out your business and group. So, that money can be made quickly. You can elect a head or chairman of the group from the beginning. But, remember this doesn’t mean that he makes all the decisions. In order to be successful you have to work together. In the case of the business the weaker links that want to join should be put in a position where they have sponsor that can motivate them. These members should not be at the top of the chain.7. When the first check comes in, it will be split evenly among all the members or put into a pot an at a specific amount or time profits should be evenly distributed.8. Remember 4 to 5 heads are better than one if all are willing to work together. You want to continue this process unto infinity or until each member thinks that they can survive on their own. This process will reduce the failure rate and increase profits.9. One of the main keys to success is each member sharing their talent or individual skills. If one is good at marketing then he needs to train others. If one is good at speaking then he need to be the spokes-person or train others on how to speak successfully.10. Finally, Try to pick a business that doesn’t have monthly fees. I have found that this works better because of economy. This can work with business with monthly fees, but I wouldn’t encourage it if finances are low when starting out.This can be done with family or friends. You can recruit or hand pick your own group based on talent and skills as long you can all agree on things.I believe that this new approach will definitely work more effective than the approach that many have followed in the past. The key to survival with individuals in life is family. A family is a support system. We as human seem to thrive from this system more than those who don’t have a family or family structure. This concept can be use in any internet home business and I personally think that it will work effectively.
How To Choose The Perfect Home Based Business For A Healthier And Wealthier Lifestyle
Taking your first step to a healthier and wealthier lifestyle means you are looking for more out of life. This could include a healthier mind and body, more control over how you earn an income, greater rewards for your effort, and more time for yourself, your family and friends at large.What do most of us really dream of? Is it a new car? A beautiful home in the nicest part of town? Extended vacations with large amount of spending money? Paying off debt that has been hanging around your neck for decades? Better healthcare and wealth?The answer to turning our dreams into reality would be the result of our decisions as our dreams and ambitions differ from one person to the other.Most people would agree with me that the current global economic downturn has made working in the corporate world a struggling ground for bringing home an adequate income that would barely get you by and would never get you wealthy for that matter. This is where a well-chosen home-based business comes to the rescue. After all, we all want to reach our potential by getting some good financial independence, a healthy mind and above all, an unlimited potential for residual income.To choose a good home-based business with little risk and unlimited potential for wealth, you will have to see yourself as a good marketing and sales force for a reputable multi-level marketing company that provides everyone with a better quality of life through innovative products and an unrivalled financial opportunity.It is important to understand what makes a successful multi-level marketing company with a proven track record that shows integrity with every business decision. In choosing your perfect home-based business, you may have to look for such important business practices as innovative, quality products that speak of the credibility of the company and this will reflect on you as the distributor or marketer. You can’t go wrong with a market leader that has a proven track record.The greatest financial benefit of a good home-based business is residual income. You get rewarded handsomely for your hard work and effort on commission basis.Look out for reviews on steady growth charts and sales figures of the multi-level marketing company as these are strong indications that the future of the company is guaranteed for financial stability.Also, your home-based business should have the privilege of working under the umbrella of a reputable multi-level marketing company that has been around for at least 5 years with a track record of growth and strong management. A successful company will offer such multiple income opportunities as profit-sharing, leadership and royalty bonuses.An active customer base is critically important for the success of your home-based business. The only way to build this, is with quality consumable products.The success of your business symbolizes the success of the company. A good company will offer excellent training, seminars, webinars, incentives and a support centre.A key advantage of your home-based business is to involve with a company with international presence across the globe. This is a symbol of stability, growth and large industry experience.Choose the perfect home-based business with a low risk start-up cost. Your first step to a healthier and wealthier lifestyle begins with the freedom and flexibility of owning your own business.
All Grown Up – Why Your Small Business Needs A Web Solution, Not A Website
Raise your hand if you have a website for your small business. Now keep it raised if it is generating a significant volume of prospects or sales. Not holding your hand up anymore? You are not alone.Just a few years ago, small companies flocked to the web in droves, rushing to post their first website, anxious at the prospect of low-cost instant exposure. The web was going to be the great equalizer, putting small business on par with the big brand names, dangling the promise of visitors flocking to a company’s site to purchase its wares or partake in its services. Sound familiar? Unfortunately, for most small businesses and organizations, the promise fell short and company sales did not skyrocket from an unending march of site visitors.So, what happened? For one, the web quickly became ultra competitive. Millions of sites sprang up in every business category making it virtually impossible to be found in the search engines. What little bit of traffic the businesses may have enjoyed when the site was first launched began to dry up. Also, as the web evolved to become a more interactive user experience, it became more technologically complex and many small business websites did not keep up. The other part of the problem was in the approach; not understanding that just putting together a website, even a pretty one, and finding some faceless company offering cheap web hosting services is not likely to make you the next great success story. A large hurdle that many small business owners and managers face is the tendency to compartmentalize the web into a few oversimplified tasks: grab a cheap domain name, find a budget small business website design and development person, look for some impossibly low-priced website hosting, and then expect their website to magically appear on page one of Google. Unfortunately, this ends up being a waste of time and money.A Solutions-Based Approach with Professional GuidanceTo create an effective web presence requires a solutions-based approach with clear ideas about what you want to accomplish and who the audience is you are targeting. The right elements have to be present; a well orchestrated website design with cohesive branding, solid technical acumen, clearly defined objectives for the organization, reliable small business web hosting services and some method of marketing your site and tracking the results. The web is constantly evolving and search engine competition is fierce. Being successful on the web requires consistently evaluating the site’s effectiveness based on your objectives, understanding the latest technologies and trends, having a dynamic website marketing plan and constantly fine tuning.While you don’t have to spend a fortune to create real value on the web, you should also be realistic. Understand that being successful will require an investment that you should plan for and a clear vision of how your website fits into the goals and objectives of the organization. If you don’t have the experience and technical resources in-house, working with a professional web solutions provider, preferably one specializing in small business web design and development can provide great benefits. A good starting point in the process is to have an understanding of the core elements that are part of a successful website strategy and how they fit together.The Elements of a Web Solution1) Domain names – Choosing the right domain name is an important branding decision which impacts how your organization is perceived and also how it is found in the search engines. Purchasing from a cheap bulk registrar or choosing can spell trouble.2) Website Design & Development Services – Find a provider that specializes in small business web design and development. An organization that offers a solutions-based approach can assist your company in doing thorough needs analysis and in designing all of the elements to work well together. First impressions count!3) E-mail Management – E-mail is a key communication tool for your business. The right system will help you maximize communications within the company, on the road and with your customers.4) Social Media – Social media such as blogging, Podcasting and other web 2.0 tools can greatly enhance customer communications. Your web services company should be able to help you evaluate how social media tools can best benefit your web presence and business objects.5) Small Business Website Hosting Services – All web hosting is NOT created equal. There are many nuances and technical consideration involved with hosting solutions. It is best to stay away from budget hosting companies. Look for a managed hosting provider who can help you select the right plan for your web solution goals, get your website up and running and support you as it grows and evolves.6) Website Maintenance – How will your site be maintained and updated? Having both small business web development and managed web site hosting as a package is immensely helpful for maximizing web server resources, identifying problems and keeping the site maintained and updated.7) E-Commerce – Will you be actually selling on your site or using it for lead generation or information dissemination? If you are selling products, who will create and maintain your product database. How will transactions be handled? What about web server requirements? Working with a professional can help ensure you make the right choices for your e-commerce site.8) Business Process Interaction (database development, customer relationship management, integration with your business management systems) – A website needs to be more than just an ad on the Internet to be effective as a business tool. There are many ways the web can be used to improve your business processes and integrate with your existing systems such as accounting or contact management.9) Website Marketing – How will people find you on the web? Will you optimize your site for organic search or employ paid marketing techniques or a combination? What directories should you list your site in? Search engine marketing has evolved to be a complex specialty. It’s critical that you understand the tools available for driving traffic to your site and if needed, know how to evaluate and engage a web marketing specialist.10) Website Analytics and Conversion – Having a great site isn’t enough if your visitors aren’t doing what you intended; buying something, contacting your company or using your site for an information source. Does your site have usability issues? What kind of reporting will you use to track site visitors? What do you need to know and do to convert your visitors into action-takers?It’s a Process and a Work in ProgressWhile there is certainly a lot to think about, creating the best possible website solution for your business doesn’t have to be overwhelming. Your website can and should be a work in progress, evolving as your business grows. Because most small businesses do not have an internal IT staff to handle the technical elements of web development and planning, working with a web solutions provider that specializes in small business website hosting services and small business web design and development is a good start. Such an organization can help you identify your goals, manage the technical aspects of your site and guide you in your marketing efforts. They can also help you work within your budget to develop a plan that combines all the elements into a cohesive whole for creating and maintaining a successful web presence.Conclusion The web has grown up to be a terrific marketing medium for small businesses and organizations. Done right, it can be the most cost effective and powerful marketing and communication tool in your arsenal. The promise is still there. However, to truly leverage the power of the web, it is important to take a good, hard look at the website you currently have or the one you are thinking about creating. The elements of a successful web presence: small business web hosting, website design and development and web marketing are only the framework for a well thought-out web solution designed to reach your customers and truly benefit your business.
Is a Home-based Business Right For You?
If you are searching for a great way to have a successful income and you like the thought of doing it from the comfort of your own home then a home-based business could indeed be right for you. Many people think of home-based businesses as being easier than an outside of the home business, but the truth is this is not so. Home-based businesses bring their own type of stress and challenges.
The only way to know if home – based businesses going to be right for you and your lifestyle, is to weigh the pros and cons that it brings. Every year more and more home-based businesses startup. There are over 15 million people the describe themselves as being self-employed, meaning that they basically own their own business. The good news is that working from home with your own home base business is now accepted as a viable and lucrative alternative to working outside the home for someone else.
Thanks to the constant changes and improvements in technology, working from home has become easier and easier. Basically, people from all over the world can network, and this makes a home-based business even more of a lucrative possibility. Of course you have to be technology minded in order to succeed in a home-based business. You need to at least have the basics down. You also need equipment, which would be a computer, a high-speed Internet connection, and the phone. Depending on the work at home business that you have, will depend on how technologically advanced you need to be.
Some of the immediate advantages of having your own business are the freedom that you will have. Plus, you have the ability to make your own decisions and not have to rely on a boss that tells you what to do. You can set your own hours, you work when and how long you want. You get to choose the people that you work with, or in this case, don’t work with. Many people find that having a home-based business allows them to fulfil their potential. If you don’t feel that you are able to achieve everything that’s possible for you in an outside the house job then owning your own business lets you aim as high as you want. You are in charge of your own life.
The disadvantages of having a home-based business must be realized as well, because if you’re unprepared you could find that your business will fail. The first and the most obvious risk is going to be financial uncertainty. If for some reason the worst happens and you either don’t find clients, or find clients that don’t pay you, you need to determine if you can afford to lose the capital that you have invested in the business, or that you need to live. Having your own business generally will mean the you wont have benefits. If you’re going to have benefits than you have to determine if you can afford that.
Running your own business takes a lot of time and energy and some people get burned out. Work at home business owners are particularly susceptible to this because they generally handle all aspects of the business. The fact that you are home alone and working by yourself most of the time can be a negative aspect for some people. Some cannot handle the isolation factor. Another con to home-based businesses is an unsupportive family. If you cannot make your family understand that you actually are working, or if you work so much that you never spend time with your family this can cause many difficulties.
Traditional Advertising Vs Internet Advertising
In the 1870s a devoutly Christian merchant John Wanamaker from Philadelphia, in the US was credited with starting the first departmental stores and price tags. This, he claimed, was to eliminate hassles and haggling about the price because he held that everyone should be equal before God and price. He also became the first advertiser in the modern era by buying space to display ads in local newspapers. Here again, he remained a true Christian by not advertising on Sundays. His precise business acumen coined a witty phrase that leaned more towards the economics of business; his phrase ‘half the money spent on advertising is wasted’ holds true even in the internet era when advertising techniques have been turned on their head.
The global advertising industry crossed the $500 billion mark some years ago; an estimated $200 billion is lost as ‘wasteful advertising’ i.e. expenses towards advertising material that don’t reach audiences and reach the wrong audience. In his witticism, Wanamaker was quite on target.
However, the coming of the Internet Age has perhaps slowed down the trend of this wasteful advertising. Many entrepreneurial firms are selling new tools to businesses to reduce the waste in advertising. Such tools come in various forms but with one common purpose which is to replace the old formulae of advertising with real actions for consumers and measurable values for business advertisers – sharing videos, purchasing a product, clicking a web link etc.
Estimates by independent firms such as Nielsen figure that in the television media, advertisers may pay up to $20,000 for a 30-second spot at a pre-fixed rate, say, cost per thousand or cost per million (casual estimates for the population of an average city). It cannot be said exactly how many television sets will be tuned in to a particular channel at a given time and so the price may really be astronomical, the proverbial ‘atom bomb’.
In contrast, newer advertising models based online or internet advertising are innovative and compared to ‘spearheads’ that people get impaled on. The idea of online advertising is to allow consumers themselves to take the initiative and voluntarily interact online with what they find.
Here the consumer’s “action” is of more intrinsic value to the advertiser than his “exposure” to advertising material.
The credit for the modern PPC (pay per click) advertising insight goes to Bill Gross, an internet entrepreneur who founded Idealab in 1996, a kind of invention factory.
One of the inventive ideas to emerge from this was GoTo.com (later called Overture) that pioneered the concept of ‘paid search’ advertising. A few years later, Gross met the young co-founders of Google, Sergey Brin and Larry Page to whom he put across the idea and the offer of a partnership. Google was an upcoming search engine that had not yet mastered the concept of making revenues online and hence the idea may not have appealed; however in less than a year, Google came up with AdWords loosely based on Overture’s concept of advertising links charged for clicks. This was followed by AdSense, a system that went beyond search results and placed sponsored links on the web pages of publishers, online magazines and newspapers that signed up as part of the network of Google. These “contextual” advertising strategies that find relevance to the content on a webpage are paid for by the advertiser only when a prospective customer clicks on the ad links. Google’s revenues from such contextual advertisements nets revenues in the billions of dollars.
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.