How to Improve the Marketing Skills For Your Internet Home Based Business

You might have started an internet home based business, possibly with a few customers already on the books. However, you will always need to find more and more customers, but you suddenly realize that you lack the marketing skills.The most basic skill of online home business is marketing. If you apply some basic marketing skills or principles, and if you do this consistently over a period of time, you will bring in innovative business opportunities.A marketing skill is defined as communicating the right message to the right people at the right time, in a way which is precise for your business.Here are the great tips to improve your marketing skills in your online home business:
First identify exactly what you are going to do with your prospect.
Look for training programs and tools which give step by step instructions on how to create morals which are useful for your prospect in internet home based business.
Be practical in searching for the better ways to promote your own website.
Try to evaluate the efficiency of your newly established method.
Understand the methods, educate yourself, be patient, and apply what you learned.
Positive attitude: Personal improvement is a big part of the marketing process. You can make money, and succeed in your internet home based business by improving your confidence, your interactions, and your overall attitude about life. At the same time, you will need to possess an optimistic outlook and open up for new types of business developments.Leadership qualities: Improving your leadership qualities is a very important marketing skill and it is really about wanting others to get ahead and helping them reach their goals. Marketing in any business is all about creating a supportive environment and comradeship for all those who are involved.The right message:Another very essential marketing skill which you will need to improve upon is clarity about what you want to convey to potential clients, and how to say it. The main thing which you need to consider is that your prospective customers must be able to see the benefits to them by buying your service or product.Generally when customers are buying, they want to move away from an undesirable situation, and move toward a situation which they would like to be in. Your communication therefore needs to reflect this.For many internet home based business people, improving their marketing skills can appear to be a very tough task. However, it is essential to invest a great amount of time to understand the basics of how best to market your home business. Once you train yourself with it, you will be pleasantly amazed by the outcome you receive.

Two Reasons Why a Home Based Business is Not Suitable For People Looking For a Quick Income

When people find it difficult to succeed in the corporate world or working for others, their next option is often to start a home based business of their own.In this home business tips we are going to take a look at the two reasons why a home based business is not the best option for individuals seeking for quick income.1. Skills – Many people take this for granted or rather learn one or two things and assume they have known it all. Depending on the kind of business you are doing, you will to have an in-depth knowledge of how your chosen business field operates. Learning these skills can take a lot of time when others (professional) are earning tons of cash you will be busy trying to figure out what it takes to make your business work.2. Business is more about building. You can’t start a new business and start generating hundreds of thousands of dollar overnight. As a matter of fact, the internet is the last place one should expect fast success unlike what most people think. Building a home based business can take a while whether online or offline depending on the resources available at your disposal.These are the two reasons why a home based business is not suitable for people looking to earn quick income.However, individuals who take the time to learn how their chosen business works as well as build it often discover that the income keeps growing bigger day after day. At the long run, they might need to hire people or outsource some part of their jobs.Perhaps you might want to take a shot at launching a home based business before the urge for urgent income arises.I hope you find this home business tips article interesting.

5 P’s of a Successful Home Based Business

Achieving a successful home based business stands out as the goal of any home business entrepreneur. One can find numerous tips, ebooks, and websites that provide advice regarding how to do it. But I believe that all this information, as important and as required as it is, can be grouped into five broader categories. You need a purpose, passion, a plan, persistence in carrying out that plan, and patience to wait for the plan to work.Purpose- The first step is easy. It’s the reason you went looking for a successful home based business to start with. Write down the reasons you want or need to work from home as well as what you will do with the extra income you make. Read these reasons aloud first thing in the morning and the last thing at night. You may even put pictures on a poster board to remind you of what you will do with the extra income and place it somewhere in the house where you will see it regularly. Think of them during the day. Doing this will lead naturally to the next step, which is passion.Passion- Napoleon Hill said, “Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything.” When you develop a strong purpose or desire to work at home, it will lead to a deep, burning passion to succeed. That desire will carry you through failures, by people who tell you can’t do it, and it will help overcome your own doubt. One thing that is hardly ever mentioned to those who are starting their home based business is the need for personal development. A person needs to grow just like their business grows.Plan- Everyone knows the saying, “He who fails to plan, plans to fail.” That holds true for a successful home based business. I don’t know how many people, including myself, have started a home business opportunity without having any idea, or attempting to get an idea, of what to do to be a success. The way to develop a plan is beyond what I will attempt to say here but I will make 4 points. First, the plan needs to written down. A written plan holds a person accountable and gives you a track to run on. Secondly, utilize a mentor, if possible, that will help you come up with a written business plan. A mentor can be someone involved your home based business, someone who already has a successful home based business, or it may be someone that will do it for a fee. Thirdly, the plan should be goal oriented. Goals need to be specific and have a definite date for completion. And finally, be fairly flexible with your plan. You may need to make some modifications to it especially if something just isn’t working. But the main thing is to keep a written plan in place at all times.Persistence- My favorite way to describe persistence is sustained effort. Once a plan is in place, it must be carried out, continually. Create a schedule to carry out your plan and do your absolute best to stick with it. Treat your own home based business like a full time job and eventually you’ll harvest the rewards of a full time occupation. Get the mindset that just as you have to go to your regular occupation on certain days at certain times, you need to work at your home based business on certain days at certain times.Patience- Finally, after the plan is created, and the schedule is laid out and you become persistent in carrying out your plan, you must be patient. This is a world of instant gratification. We want and can get most everything quick. But a successful home based business is not going to happen overnight. It has been said time and again that creating a successful home based business is really a marathon, not a sprint. Too many people quit just before they’re about to see results. Be prepared to stick it out for the long haul.I don’t know of a magic way to make money online. But I definitely believe that one can achieve a successful home based business by having a stated purpose, developing a burning passion to succeed, setting up a firm plan, being persistent in carrying out that plan, and by having the patience to wait for it to achieve its potential. And although there are hundreds of more detailed tips on creating a successful home based business, these are five easy ones to keep in mind.

What Is Involved in Operating a Christian Home Based Business?

In order to answer that question, it is important to determine what is unique about a Christian home based business. What would make this different from any ministry a person might become involved in? An obvious answer would be that a primary objective of any business is making money. A ministry, such as operating a food pantry, teaching adults to read, or any number of other activities might be developed purely to meet the needs of others, alleviate suffering, and glorify God.Asking a clarifying question, like the familiar, “What would Jesus do?” can be helpful in determining whether a business opportunity qualifies as Christian in your understanding or not. Obviously, you will not be considering anything immoral or unethical. You would also not be involved in something that takes advantage of or exploits someone else.Have you ever gone online to look for a Christian home based business? Discouraging, isn’t it? Maybe even scary! How do you navigate through all the offers out there and determine which ones are legitimate and which ones are just an attempt to separate you from your money? I think the phrase,”Be wise as serpents and innocent as doves,” Matthew 10:16, describes the narrow path we have to walk in establishing a Christian home based business.I imagine you have heard the statistics that 95-98% of people who start a home based business, let alone a Christian home based business, fail. Like most of us, you have more than likely either failed at a home based business or know someone who has. With all those things stacked against you, why would you even try? That gets back to the single most important question to ask yourself,”Why am I considering this?” What do I want badly enough that I am willing to do whatever work is necessary and assume whatever risks are required to reach my goal.In planning to start a Christian based home business the “why” should definitely be more significant than making money, paying off bills or even living a better lifestyle. As a Christian our motivation should be grounded in our faith. That gives us an extra level of stability since it moves our motivation and resolve from simply something in our own self interest to meeting the needs of someone else.It follows Jesus’ words when he was asked what the greatest commandment is, “And he said to them, ‘You shall love the Lord your God with all your heart and with all your soul and with all your mind. This is the great and the first commandment. And a second is like it: you shall love your neighbor as yourself.’” Matthew 22:37-39. Blending these two should be our ultimate goal in a Christian home based business.It sounds like a tall order, and it is, to combine total love of God, ourself and others, but the right Christian home based business can accomplish exactly that. If we do nothing that we would not want to share openly with God, then we know what we are doing will glorify Him. In a way our business becomes a standard by which others evaluate us. That becomes even more significant when we attach the standard of our faith to the performance of our business. We are actually inviting people to include this in their evaluation of us.If we endeavor to create only “win-win” scenarios in our relationships, we know that we are placing the best interest of others at least on a par with our own. With this foundation, your Christian home based business can really be a ministry that will bless you and others and glorify God. Combined with that, it can be the source of financial reward, allowing you to meet your own needs as well as the needs of others.

7 Things to Consider When Engaging Small Business Consultants

Many small businesses are experts in their field and know their own business inside and out. However lots of small business owners lack the time or expertise required to implement certain projects. That’s where a small business consultant can step in and help.In order to achieve a successful project it’s important to be clear about what you want your consultant to be able to do for you. Just as important is selecting a consultant with the right skills for the job, but how do you make sure you don’t get off on the wrong foot?Here are some things to consider:1. Are you looking for a research/diagnostic approach or do you need help with implementation?Firstly are you looking for someone to take a diagnostic approach to a business problem you are facing? For instance, which market segment should you enter? Or what product line should you sell? Or is your business need about implementation? For instance, you’ve identified that you need to be on Social Media and need a marketing consultant with the expertise to make this happen.The two needs are different and some consultants are better in one area than the other. To find out whether your prospective consultant prefers to work on implementation projects or research projects ask them. Don’t be afraid to ask them for specific examples of projects they have worked on and how they have tackled projects similar to yours in the past.2. Ask prospective consultants how their clients are better off after they leave.What sort of outcomes were they able to achieve for their clients? Look out for wishy-washy answers. Look for specific examples and outcomes. Does this fit with the sorts of outcomes that you would like for your business? Where they able to increase website traffic by a certain percentage, reduce staff turnover by a certain amount or generate more business for the client?Picking the wrong person for the job might end up feeling like you are pushing water up a hill with a rake. Not only will the results be less than optimal but it may end up being a costly and stressful experience also.3. Be careful of wanting champagne on a beer budget.Do you want fast, cheap or talented? You must pick two out of the three. There is a triangle trade off here. You can get premium talent, faster results or a cheaper cost but Taylor Swift won’t teach your team how to sing tomorrow for free if you see what I mean.Often a small business owner will set a budget and then begin the search for the best talent and/or fastest result within that budget. From my experience a budget-driven approach can often compromise results. Your best approach is to establish your desired outcome, then judge each potential candidate by how likely they are to be able to achieve that outcome.4. Look for a solid “About Us” page.Ask consultants about their qualifications and their approach. With so many so-called ‘experts’ out there it’s really important to identify who is qualified and able to do the job for you. Ask prospective consultants questions about their skills and experience to determine whether they are fit for the job. Are they methodical in their approach? Do have a history of achieving quality results for clients? This will help you to avoid being mislead by organisations with few processes, a glossy website and no real qualifications or experience.5. Ask yourself whether you think you will be comfortable working with the consultant.Do you think they are going to be the right fit for your business? Can you see yourself and your team working well with them? Sometimes it’s less about the exact industry experience they have had and more about their ability to get results.6. Think about goals and outcomes first.Don’t pick a technical specialist to do a job when you really need someone who can deliver a sales outcome. Think about your goal first, what are you trying to achieve? For instance, if it’s conversions and leads from your website then perhaps what you really need is a marketing consultant to advise on the layout of the website rather than just a technical person to do the build. A technical person can definitely build the website for you, it will function beautifully, but will it achieve your goal of converting traffic to sales?7. Be wary of small business consultants who are all things to all people.A good consultant will be honest about what their speciality is and will not simply be a ‘yes’ man or woman. They will push back on projects, ideas and suggestions that they don’t think are right for your business or are beyond their area of expertise. Look for a consultant with backbone not someone who lets you steer the project without alerting you to the danger that lies ahead because they are too afraid to question your judgement or afraid they will upset you. I’d rather have an expert question me and make suggestions than sit back and watch me sink the ship!So whether it is a marketing consultant or a small business consultant you are looking for, many of the same rules apply. Identify what you need and look at it from an outcomes perspective, work out who has the expertise to help you achieve your goals and whether or not you are comfortable working with them. Look for someone who is genuinely interested in working with you and passionate about what they do.

How to Start a Home Based Business and Grow It to Profitability

In this discussion, we are going to focus on issues pertaining to how to start a home-based business. Many of the most successful businesses were actually started it in someone’s home. We’re all familiar with the many fables and legends of individual starting multi-billion dollar enterprises in their basements and garages and certainly you can develop a highly successful business that is based from home. Of course, only a small and almost infinitely small fraction of the use of home-based businesses will become as successful as the next Microsoft were Facebook, however, you can develop a secondary income for yourself to the development of a home based business. In fact, over time, your home-based business may become your full-time job. When you are starting a home-based business, the most important thing to do is to first determine what type of business at you ultimately seeking to start. Many people, with the advent of the Internet, have taken the starting small e-commerce businesses were small blogs are able to generate a modest amount of income on a monthly basis. As such, we fully recommend that you harness the power the Internet when you are starting your home-based business. However, not all home-based businesses need to be based on the Internet or have a nationwide presence. For instance, if you are very good with numbers and have a strong background in bookkeeping, then it is very common for you to open up a part-time bookkeeping practice that is based solely out of your home.

One of the downsides to opening a home-based business that operates with local clients if they can come off as unprofessional that you simply work out of your home as it pertains to the services that you render. As such, you may want to work directly with the client at their location or providing services such as bookkeeping or other personal services that do not necessarily need to be rendered within your home. Over time, you may want to be to able to afford a small office space that will allow you to give your business and more professional look as it pertains to working with local clients.

It should be noted, on a side discussion, as it pertains to financing a small business it is somewhat typical. The small business administration typically does not allow for loans made to home-based businesses. This is primarily due to the fact that one of the reasons why the small business administration was created was so that traditional businesses could be launched and individuals would hire other people within their small business facilities. As such, you may be an excellent candidate for a SBA loan however you are going to need to move into a traditional facility before you’re able to receive this type of financing. However, there are a number of other types of financing methodologies available to you. This may include using some of your own savings, using some income from your 401(k) or IRA accounts, taking out a personal loan, using credit cards, or working with a potential investor that can provide you with the financing that you need in order to launch a business. Of course, there is no proper way to ever play in the business, there are a million ways to skin a cat, and as such you may want to tap some unconventional means as it pertains to obtain financing for your home-based business. As it pertains to using credit cards or personal loans in order to finance your home-based business, this can be a very expensive endeavor. Most personal loans are unsecured by any type of tangible property more tangible asset typically has a substantially higher interest rates in the back associated with a secured loan. In most cases, your interest rate can vary anywhere from 9% to 20% per year depending on your overall credit score. As such, it is absolutely imperative for use loan financing in order to start your home-based business recommend that you very carefully to all potential financing options for using personal loans or credit cards. In time, there are other types of lending facilities that you can use as it pertains to receiving the financing that you may need on the ongoing basis.

After you determine which type of home-based business one a start, it is time to start the preparation of your business plan. Here, you’re going to want to create a blueprint of how you intend to provide your services or products the general public, how you will integrate certain procedures and protocols into your day-to-day activities relating your to your home-based business, developing a well focused financial model that has a profit and loss statement, cash flow analysis, balance sheet, pregame analysis, business reaches page, and general assumptions page that will be used in conjunction with your company, and a detailed overview of how you intend to market your business.

As we discussed before, you can use the power of the Internet to market your business, even on a local level areas many home-based businesses are now also turning to popular social networking websites such as Facebook, Flickr, tumbler, and other popular portals in order to get the word out among people they know. You have a number of contacts within your local area that have a specific need for a specific type of service then you may be able to reach out to them directly by being able to directly contact them via e-mail and through the affirmation social networks. In fact, we strongly recommend that you create a Facebook page and work-related social networking page that showcases your home-based business in exactly the services that you provide as it relates to your company. If you are engaging in e-commerce operations, then it is extremely important for you to invest heavily in promoting your business through social networking media, search engine optimization, and pay per click marketing. In time, you’ll find a number of people are able to find your e-commerce platform very quickly and that your infant every turn over rate will be extremely high. Although this is somewhat of a general article pertaining to how to start a home-based business, you are, again, engaged in the business of selling products on an e-commerce basis than we strongly recommend that you also use very popular third-party selling platforms such as eBay and Amazon so that you are able to, again, had a very brisk inventory turnover as it relates to your overall operations. In the following, that at the onset of your home-based business operations, you are typically able to sell more of your e-commerce-based merchandise through Amazon and eBay versus through a proprietary e-commerce site. Additionally, as it relates to e-commerce, these websites often charge minimal fees as it pertains to showcasing the products that you have for sale to the general public. As such, if you are selling products that you are either acquiring or producing on your own that you may want to check out this type of third-party sales platform in order to further your sales as time progresses. Of the utmost importance that you developed a very strong marketing plan especially to if you are engaged in e-commerce selling activities.

Relating to our discussion as it relates to financing ongoing business operations, once you have established your business then you may want to consider the possibility of taking credit cards. If you are heavily engaged in e-commerce, you can usually secure a line of credit based on your amount of money that is coming in through the credit card receivables that you receive. For instance, if you operate an e-commerce website that generates $10,000 a month in revenue then you can typically obtain a credit line equal to approximately $10,000-$20,000 depending on the specific lender. This is commonly known as merchant financing and it can be a very good way for you to manage your cash flow on a month-to-month basis as you plan on starting a home-based business. However, unlike in SBA loan that were conventional business loan, merchant financing based on credit card receivables is typically very expensive. As such, it is strongly recommended that you use this type of marketing sparingly as it does cost a significant amount of money. Typically, work in financing is approximately the same interest rate costs associated with a personal loan or credit card.

Also, you’re going to want to think about whether or not you shooting for your business or create a limited liability company to manage your business operations. If you do decide to incorporate create a limited liability company then you will have the ability to create a bank account in the company’s name, and don’t conduct business under the company’s name, and have that company almost act as a third-party as he progressed business operations. Additionally, there are many tax benefits associated with incorporating as you will be able to more effectively receive and deduct certain expenses for your home-based business. On a side note, and home-based business should ever be started for tax savings purposes. In fact, the IRS has cracked down substantially on individual entrepreneurs have created a home-based business solely with the intent to write off a substantial amount of their ongoing living expenses were ongoing business expenses. As such, you need to ensure that you are operating this as a legitimate part time business it is simply based out of your home. When you’re starting a home-based business, we strongly recommend that you have a certified public accountant or tax attorney work with you so that you can properly plan out how certain normal expenses within your home will be deducted if you were Corporation or your limited liability company. Of course, you do not necessarily need to start a corporation or limited liability company in order to larger business operations. At the onset of operations, you can decide to work as a sole proprietor which means that ultimately everything that you do as you conduct business is through you as an individual and not as appropriate. However, with this comes the risk of unlimited liability if something should happen or if you are sued. For instance, many business experts often recommend that a individual business does incorporate into the fact that it should something go wrong be litigating party can typically only go after the assets that are held by the corporation. However, if you were acting as the sole provider, any leading party can come after all of your personal assets including your home, vehicles, retirement accounts, and other issues and assets that you may have been held by your person. As such, you should make a determination as to whether or not you will be engaging in any type of activity or selling any product that ultimately could have some potential for you don’t wind up in court for one reason or another. Again, we always recommend these speakers with attorneys for all of the advice as it pertains to these matters.

This business can be a fun activity and certainly can provide you with a very good source of secondary income for the ability to eventually turn your home-based business into a full-time job. Again, in summation, you need to always ensure that you are starting a home-based business for the right reasons. The wrong reasons, as we discussed throughout this article, include simply starting a home-based business with the intent of paid tax deductions. The best reasons for starting a home-based business are typically because you want to have a business that provides you with ancillary income that this is your passion and that you want to create a full-time business out of it in the future.

Where To Find The Best Free Advertising Online

The other day I decided to clean out my garage, and was amazed at the amount of unwanted items I’d collected over the last couple of years. There was a couple of cell phones, ski boots, my old laptop, pieces of furniture and even the old salt water system from the pool. All were in excellent working order and far too good to throw away. Thinking that they would certainly be useful to someone somewhere, I decided to advertise them on the Internet. But where would I find the best free advertising online?

I decided to research the main websites.. like Craigslist, US Free Ads, and eBay before deciding which would be the best place to sell my unwanted items. Key criteria was going to be ease and speed at which the items were sold, and of course how much I would get from the total sales. A quick visit to each of the sites had me realizing there was no simple answer when it comes to selling your unwanted items. Finding the website offering the best free advertising online was to be no walk in the park.

I started by categorizing every aspect of the selling process, making a note of the strengths and weaknesses of each of the online advertising services I was to research. Here’s a few notes on my findings.

Craigslist – Free Advertising Online

The Craigslist web site works in much the same way as an old fashioned classified ads portal, with the main difference being that you are able to add images with your text, and buyers are able to browse advertisements in their own geographical area (city and state) by category or simply by the date, making contact with the seller either online or by phone number, assuming one is provided. Sellers choose a metropolitan area, and category, create an ad (with or without photos) adding their phone number if they wish. The seller’s email address is hidden from would be buyers. Contact with the seller is made through internal email. The seller thereby controls how they wish to be contacted by prospective buyers. The great thing about Craigslist is it’s free, with no charges for seller or buyer. Shipping costs are rarely an issue as the web site works locally giving potential buyers the opportunity to visit, inspect and collect merchandise.

A couple of disadvantages with Craigslist are firstly your advertisement is limited to one particular metropolitan area, and secondly, because of the open nature of the bulletin board, it has become a haven for spammers and scammers, so you need to be on your toes and never release any goods until you’ve been paid in cash.

US Free Ads – Free And Paid Online Advertising Services

US Free Ads has been offering free advertising online since 1999, and the web site offers both free and paid online advertising services to it’s 800,000 members.

Basic membership is free, but is limited to private non-commercial use. Once you’ve registered, you are entitled to free advertising online, and can choose to either go nationwide or stay in your own metropolitan area. You can place a new advert at any time and you are able to advertise most products, items and services, as you would expect to find in a regular newspaper classified section. As a seller you can place your advertisement with images, and. prospective buyers can contact you through internal email so although you might receive the odd spam mail, security is pretty good.

eBay Classifieds – Local Free Advertising Online

Most people automatically think of eBay as being a paid auctions web site, but eBay Classifieds was launched in the U.S. in June 2007, originally as Kijiji.com, and specializes in free advertising online with the emphasis on local ads. You will need to register to post a free ad, but once you log in you’ll find loads of categories to choose from and 272 local community areas across the US.

The only drawback I found with eBay Classifieds is that it is local only, so you are only able to place your ads in your own area. Security is good though and because eBay Classifieds is part of the eBay Group, you can expect your ads will have a great deal of exposure.

So, having had a closer look at these three quality, online advertising services, I found it difficult to make a choice between them. Then it dawned on me.. since there was no fees involved and they all offered free advertising online, I decided to advertise my ‘stuff’ on all three portals. It turned out to be a fun exercise and needless to say I sold everything within a week. I did notice that the bigger items sold through Craigslist, and the more expensive items sold through the contacts I made at US Free Ads, with the remainder of my sales took longer, but sold through eBay Classifieds.

At the end of the day, I guess I was unable to discover which was the best free online advertising portal. My advise to anyone interested in clearing out the garage, looking for a new job, buying a used car, selling your old bike, lining up a babysitter, or simply warming to your kids’ plea for a puppy, is to keep your options open. Use all three of these fine online advertising services to full advantage, and I’m sure, like me, you’ll be delighted with the results.

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.


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