Home Based Business Tips – Preparing for an Online Home Business

Are you new to running your own business, then this home based business tips is for you. In this article, we are going to talk about how to prepare for an online home business.It begins with getting a computer of your own. It has never been ideal to use one at the public centre because there are informations and softwares that you require to have on your computer. Using the computer at the public centre should be a last resort. Having a personal computer will even make work easier for you, you can carry it to whichever location that suits you and easily access any information you have stored.Secondly, you need a means of paying for services on the internet. Business is about giving and receiving, there are cases when you might want to pay for special services like hosting, subscription, advertising and so on. You wouldn’t want to be caught unawares. A means of payment is something you are certainly going to need when starting a business online. However, you can limit your spending till when the income starts flowing.Thirdly, create a home office for convenience. This is very important to avoid distractions, you would want to place a note “don’t disturb” when you are working in your office. A lot of visitors often disregard home office simply because they will still find you available. This wouldn’t be good for your business at the long run. Moms with little babies can decide on the best time to work preferable when the kids are at school, taking a nap or in the middle of the night.Fourthly, pick any of the several business model that you think fits you. There are the paid surveys, blogging, freelancing, affiliate marketing, site flipping, ad sense program and many other kinds of business online.Before you venture into any of these home based businesses, take the time to find out what it requires to make the business works as well as profit from it. Some online home business are more profitable than others but take a lot of time to start seeing a few dollar while others are easy to make money from but do not generate huge amount of income.I hope you find this home based business tips informative.To Your Success,John Benjamin

Home Based Business for Women – Explore the Exciting Experience

Having a good online business is truly a wonderful way to make money and actually provide for your family an income without the need for you to leave home. You can simply choose a home based business that you feel interested in, and then develop that business. The truth is that the internet can provide an unlimited amount of income, that you can easily earn if you know what to do.The benefits of having a good home based businessOne of the exciting benefits is that you can make money without having to go to an office on a daily basis. You simply go online and do whatever business you have decided you want to do, and then check back later and see how much money you’ve made. Whether you decide to go into affiliate marketing or other forms of money making online, using your computer is truly a great way to make money!Some women over 50 feel economically comfortable and believe that they don’t really need the money, but just like any grandmother, I’m sure you want to spoil your grandchildren with the best gifts and toys. So, to take the strain off juggling your income so that you can treat your grand children, why not make some extra money…..why not consider having a home based business….Just think, with that extra money, you can experience life every day in a more exciting way, go on bigger and better vacations, and if you want, treat yourself to meal at an expensive restaurants you always wanted to visit, but couldn’t afford the money to go. Just imagine being able to get up when you decide its time to get up….. Working when you decide its time to work on the computer. With a good income generating online business you will experience the kind of freedom you could never have had working on a job.Building a successful home based online business requires that you be disciplined and steadfast in your quest to develop your business. It means that you may have to stay up later than you anticipated, or hold off going to that movie or watching your favorite television show. A successful home based business for women means, that when you seriously put in the time and energy to build an internet business, the rewards of success will surely be yours and just think of all the fun time you’ll have spending it.

Internet Marketing Home Based Business – Stepping Forward in the Market

When you are administering a business, then nothing is much imperative than selling your own products and services in the market. Right! An Internet Marketing Home Based Business is also a way to sell the products with a goal of increasing the overall sales and making more profit. These days, World Wide Web has become an easier way to reach the potential customers and have the benefit of emerging as a renowned brand in the market. Now marketing is not just limited to local entrepreneurs, but internet has helped a lot in directing the sales in the global market.Effectual Strategy of Successful Internet Marketers These days, most of the successful internet marketers are stepping forward to put their business on the web and promote their products easily. They opt for an Internet Marketing Home Based Business as a strategy to endow clients with all what they want and carry out this job at the comfort of their home.People can manage their time as per their own convenience and have the benefit of serving their clients with the best services. This strategy has become a road to success for the marketers which help them in gaining greater profit margins. This home based business automatically increases the level of marketing, thereby allowing people to boost up the productivity, as well.Benefits of Internet Marketing Home Based BusinessesInternet marketing is an easier method of promoting the products and services. If a person is a beginner, then he can simply opt for some good marketing strategies so as to publicize the business and emerge in the market as a brand name.This home based option for internet marketing has facilitated millions of people to direct quality traffic on to their websites and achieve a higher ranking on the search engines. These search engine rankings assist greatly in mushrooming up the business, thereby giving a tough competition to other contenders.Patience – Key to Success There might be only two people out of hundred who are able to experience an immediate effect of their efforts made for propping up the business on the web. If one really wishes to experience some prolific results, then patience is the key to success. Building up links on the website, pay per click advertising, video marketing, SEO and all other techniques need some time to draw traffic. So, it is very crucial for the administrators to be patient and wait for the potential customers to go through their products and services.Internet Marketing Home Based Businesses have assisted numerous people around the world to experience the benefits of enhancing the sales and gaining more profit, no matter whatever sector they are serving. This option makes it easier to face the challenges that usually come up in commencing a business and allow people to work comfortably at their home.This consistent, reliable and trustworthy method can effortlessly help in generating revenue without making much effort. So, if you also wish to experience these benefits, simply opt for an Internet Marketing Home Based Business.Click on the link below to learn more about Internet Marketing Home Based Businesses.

The Top 3 Reasons To Consider Work From Home Or A Part Time Home Based Business

These days, traditional employment structures seem to be more in flux than we have ever seen before. This had led to a boom in people looking to work from home, and an explosion of people creating their own part time home based businesses in order to provide a supplementary income. If you are a flexible sort of person and can adapt to change easily, you may find that a work from home business provides you a number of unique benefits. Let’s take a look at three of the biggest advantages that you can enjoy if you own a part time home based business or work from home:• Convenient – One of the biggest advantages of a part time business, or work from home in general, is that it is extremely convenient. There is no boss to answer to, you decide when you want to work, how hard, and for how long. There are no schedules or deadlines other than those that you set yourself. The convenience of working for yourself puts the most generous flextime package to shame.• Profitable – While you may draw less total gross revenue if you work from home or supplement your income through a part time home based business, your time spent may be more profitable on a per hour basis. Remember, performing work from home or owning a part time home based business means you have no overhead, no rent expense, and none of the other costs associated with owning a brick and mortar commercial storefront.• Tax Advantages – Having a part time home based business or working from home can provide you some real and significant tax advantages. Commute costs, food and beverage, entertainment for clients, and even office space within your own home all can be tax deductible and save you thousands of dollars on an annual basis.As you can see, working from home or starting a supplementary part time home based business is a great idea that offers some real benefits to people in a wide variety of circumstances. Another major benefit that we haven’t mentioned is that when you work for yourself, you enjoy true job security. Corporations and industry in general simply do not take care of their employees in the way that they used to, and a person cannot afford to rest on their laurels and place themselves at the mercy of a business dedicated to maximizing profit.

The Three Biggest Lead Generation Mistakes Small Businesses Make And How To Overcome Them

If you’ve been looking for simple, proven and tested, step-by-step methods for generating more leads for your small business, then this article may just have the answer. Firstly, I want you to stop for a moment and think about all the advertising you’ve seen over the past week.How many of those actual ads can you name? Researchers estimate that over the past seven days, you have been exposed to as many as 117,000 ads based on national averages. So out of 117,000 ads, how many can you name?If you’re fairly attentive, you may be able to come up with 3 or 4 specific ads… but I’ll bet that’s because you probably see those ads over and over… week in and week out. Let’s face the facts… repetition works. When you see any advertisement multiple times every day you’re bound to eventually begin to recall the ad. But now answer this question.What few ads you do remember, how many of their products or services have you bought? Because I have a passion for marketing I tend to go online and research for well accepted ads. Take for example a series of ads from online trading company E*Trade which uses babies to promote their products. These have a massive audience on both TV and YouTube. They even had one during the Superbowl. I think they’re a scream. But… I don’t have an E*Trade account. Never have, never will. Why should I?What benefits do they offer me as a potential buyer of online trading services that any of the hundreds of other stock trading services offer? See my point? Does a smart-aleck, wise-cracking baby have any relevance to online stock trading whatsoever? Of course not. So why does E*Trade continue to make these commercials? Believe it or not, there is a reason… and by the end of this short presentation, you’ll fully understand what that reason is.Businesses today are led to believe that all they have to do to build a successful business is create some type of attention-grabbing form of marketing and they will generate leads at will. Nothing could be further from the truth. And that’s just in the area of marketing. What about generating fast cash flow? EVERY small business needs to generate fast cash flow. So how do you do that as a small business owner? What about generating profits? Generating more cash flow is great… but not if you don’t get to put any of it in your pocket at the end of the day. How would you like the answers to all of these problems?In this article I am going to reveal to you the three biggest lead generation mistakes small business owners make… and outline how you can overcome them.Here are the three mistakes. Mistake #1… they fail to get professional help. Mistake #2… they don’t know the fundamentals required to successfully market their business and attract as many new clients as their business can handle. And mistake #3… they have no idea how to use their marketing to generate immediate cash flow. Let’s explore these three in depth, and show you how you can easily and systematically overcome each one of them.Mistake #1… small business owners fail to get professional help. Can you name me just one professional athlete who does NOT have a coach? There aren’t any. Tiger Woods actually has a total of 9 coaches guiding him in everything from his golf game to his financial investments. But do small business owners really need professional help? Remember the TV ads we previously discussed? Those ads are created by “professionals.” Unfortunately, those professionals have no clue what they’re doing. Everything they’re doing in marketing and advertising today is wrong! But let me prove that to you right now.If you currently use any form of marketing such as a print ad, brochure, postcard, flyer… or for that matter… your company website, take it out and look at it carefully. And if you don’t have any form of marketing right now, take out a sheet of paper and sketch out what you think would make for an effective ad for your business. It doesn’t have to be anything formal or fancy… just create a basic outline of the ad and where you would locate the various elements on the page.Now that you have your ad… or a mock up of your ad sitting in front of you, let me provide you with the little known secrets that produce more leads than your business can handle. 99% of all marketing professionals DON’T know the lead generation secrets I’m about to reveal to you. This information is so powerful and compelling, it will position you in the top 1% of all lead generation professionals today. This example will show you why every small business owner should acquire our step-by-step roadmap as they start to generate leads for their business.Here’s what a true marketing professional will know… and help you implement into your marketing. It’s known as the “marketing equation.” This marketing equation will let you quit competing on price… and let you start selling your product or service for what it’s really worth. You will drive in more leads and increase your advertising response by 10 to more than 100 times. You will convert a higher percentage of those leads and dramatically increase your number of sales. You will get a bigger bang for your marketing buck. The bottom line is this you will literally create a profit faucet that you will have TOTAL control over.First, you MUST understand what marketing is supposed to do. Its purpose is actually three fold. Its first job is to capture the attention of your target market. Second, it must give them the hope that reading or listening to your marketing will give them enough information to help them make the best decision possible when buying whatever you sell. In other words, train and teach them how to recognize the true value of your product or service… and conclude that you… and you alone… offer the best value versus your competition. Marketing’s third job is to lower the risk of taking the next step in the buying process… and if necessary… continue to educate the prospect regarding the value you offer.Marketing that accomplishes these three objectives will result in your prospects and customers coming to one single conclusion, that they would have to be an absolute fool to do business with anyone else but you, regardless of price. It’s estimated that as many as 96% of all small businesses fail within their first 5 years. The main reason for this tremendously high failure rate has to do with the lack of expertise when it comes to generating leads and making the phone ring.Most small businesses don’t know anything about those three things that marketing is supposed to do. But there’s also an additional problem to consider. Most small business owners use a tactical marketing approach instead of a strategic approach. Let me explain.Running an ad in the local newspaper… sending out an email or direct mail letter… airing a radio or TV ad on a local media station are all examples of tactical marketing. Now don’t get me wrong… the newspaper, radio or direct mail can be successful marketing channels… If your marketing message is powerful and compelling. But that’s the problem… the message is the strategic side of marketing… and yet, it’s the most neglected.This distinction between strategic and tactical marketing is huge and one you need to be acutely aware of anytime you start talking about generating more leads. Many companies mistakenly assume that when you talk about lead generation, you’re automatically talking about tactical lead generation… placing ads, sending out mailers, joining a networking group, attending tradeshows, implementing a prospect follow up system and so on.They fail to realize that the strategic side of the coin, what you say in your marketing and how you say it is almost always more important than the marketing medium where you say it. If you fail to make this distinction, then you risk becoming jaded towards certain forms of marketing and advertising that should be a part of your tactical plan, but you eliminate them from consideration because they haven’t worked for you in the past.When lead generation results are less than optimal, small business owners tend to almost always blame the marketing medium… like the newspaper the ad ran in or the postcards they sent out. They blame the tactical part of the plan… without any regard for how good or how bad the strategic messaging in that marketing piece was. People often say things like, “we tried radio and it doesn’t work for our kind of business,” or “we sent out 50,000 pieces of direct mail and only generated 3 orders. It just doesn’t work.”Just because it didn’t work, don’t assume that it won’t work. Most people don’t have the evaluation skills or the know-how to judge whether poor marketing results from poor strategy or poor tactical execution. This is where our step-by-step roadmap can generate more leads than your business can handle.For example, most small business owners rely heavily on platitudes in their marketing. They say things like – we have the lowest prices… the best service… we’re family owned and operated… we offer convenient hours… the best value… not to mention that we’ve been in business since 1431 B.C. Look at your own marketing that I asked you to acquire or create earlier. How many platitudes did you use in your own marketing?By the way, this is NOT your fault. Small business owners have been conditioned to think this is the proper way to market their businesses… since most advertising follows this same pathetic marketing formula… including the Fortune 500 types.As human beings, we’re all after just one thing when we buy something… the best deal! Unfortunately, when you use platitudes in your marketing, there’s absolutely no way to tell who is actually offering the best deal. Everyone says they have the lowest prices, the highest quality and the best rates. So who do you believe? There’s only one way to know… and that’s to research every single business that offers what you want to buy. How many of us have the time or patience to do that?So most of us just automatically assume that everyone is pretty much the same, and therefore we default to calling on the business that offers us the lowest price. When you can’t communicate the true value your business offers, you’re doomed to forever compete on price. Our marketing equation will change all of that for you forever. It’s going to be the backbone of your strategic marketing plan. It’s the foundation on which everything else we build for you is based. Let me give you a quick overview and then spend some time going through it with you in detail.A proper marketing equation has four main components. First, it must interrupt your prospects. It must get your qualified prospect to pay attention to your lead generation marketing. Simple enough to say, but a lot more difficult to pull off in real life unless you understand what you’re about to learn here. The interrupt is done through your headline if your marketing is in print… or it’s the first thing you say if your marketing through radio or TV. The second component is engage. Once your prospect is interrupted, it’s critical you give your reader the promise that information is forthcoming that will help the prospect make the best buying decision possible. In other words, it must help facilitate their decision to pick you over anyone else. This is the job of our subheadline.The interrupt is our headline that highlights a specific problem that your prospects are looking for a solution to… and the engage is our subheadline that promises them that you offer a solution to the problem we mentioned in our headline.The third component you need to include is ‘educate’. Once you have interrupted and engaged your prospect, you have to give information that allows them to logically understand how and why you solve the problem they’re facing. This is accomplished by giving detailed, quantifiable, specific and revealing information. This is typically done in the body copy of your ad. When you educate, you need to reveal to your prospects the important and relevant information they need to know when making a good decision, and that your business… and yours alone… provides it to them. The interrupt and engage hit the prospects emotional hot buttons. Educate is the logic they need to justify picking up the phone and calling you.The fourth and final component of the marketing equation is your offer. Now that you have interrupted your prospect based on problems that are important to them… engaged by a promise of the solution… and they’ve examined the educational information that makes your solution real and believable… the last step you need to take is to give them a low risk way to take the next step in your sales process. You do this by offering a free marketing tool, such as a report, brochure, seminar, audio, video or something that will continue to educate them. Your offer will allow your prospect to feel in control of their final decision to call and buy from you.So your marketing equation is interrupt, engage, educate and offer and together they equal market domination. Now here’s the problem. Most marketing today only contains two of these components. They interrupt by throwing something at you that’s either familiar like Tiger Woods… or unusual like a monkey or talking pets. Sometimes they like to use both, as in the case of the E*Trade baby. Then once they grab your attention, they make you some type of offer such as “call now for whatever.” They have left out the engage and the educate, and marketing seldom succeeds when that happens.In fact, the only time this type of marketing does succeed is when you can afford to run the ad over and over nonstop for an extended period of time. Plop, plop, fizz, fizz… melts in your mouth, not in your hand… and the burgers are better at… have literally been rammed down our throats by Fortune 500 types. After hearing these slogans thousands of times, of course we’re going to remember them. But how can a small business owner like you that doesn’t have a billion dollar marketing budget successfully market your business. The answer… you can’t… UNLESS you follow the entire marketing equation.And finally the third biggest mistake small business owners make is that they have no idea how to use their marketing to generate immediate cash flow. When you follow this marketing equation in every form of marketing you do… from your business cards to your company website, the financial results are instantaneous and immediate.So in conclusion, the three biggest lead generation mistakes small businesses make are #1… they fail to get professional help. #2… they don’t know the fundamentals required to successfully market their business and attract as many new clients as their business can handle. And #3… they have no idea how to use their marketing to generate immediate cash flow.The above marketing equation contains the fundamental components for instantly making your phone ring and positioning your business as the dominant force in your market. It provides the marketing foundation that will enable you to generate immediate cash flow. And small businesses can use this information as a minimum standard when seeking out professional help for their business.When you can overcome these three biggest lead generation mistakes, you will generate all the leads your business can handle.

Hey You! Look Over Here! 5 Steps To A Powerful Marketing Plan

5 Steps To A Powerful Marketing Plan

We all believe that we have the best product or service we can offer. We spend much of our time making sure that we stay abreast of the latest innovations and trends. Revising, refining, and re-inventing to stay on top of the hill.

The Best Kept Secret

So how are you letting the world know you are ready and available to solve their problems? Having the best-designed mousetrap does nothing for your pocketbook if no one knows about your mousetrap. Add to the mix the ability to find the right someone’s that could benefit from your mousetrap.

Enter the world of MARKETING. From Wikipedia, “Marketing is the process of communicating the value of a product or service to customers.” Be sure that you pay attention to the word value.

When was the last time you made a purchase of service or goods just because the price was right? I’m not talking about game shows here. I’m talking about handing over your hard earned cash for something you did not need or want simply because of price. (There is a TV show about those types of people whose house is overrun with stuff.)

You make a decision to buy based upon the value you place on the benefit of your purchase. Realize I said benefit, not feature. Features are worthless unless I can see a benefit for me. Your mousetrap painted in my favorite color red (feature) means little when it is destined to be thrown in the trashcan after it catches that pesky mouse.

Telling me that it is designed to be quick enough on the snap to catch even the craftiest rodent or you will personally come and eradicate the varmint is a definite benefit to me. Send me two please.

Hey You, Look Over Here!

Isn’t that what you are trying to accomplish? Unless you are communicating your message to those who may see benefit in your product or service, you have no sales. No sales, no business.

There is a right way and a wrong way to get the word out. It has little to do with the vehicle you use, be it newspaper ads, postcards, radio, Internet, email, or any other method. It has more to do with saying the right things, at the right time, to the right people.

It Is Called a Marketing Plan

Every business needs a current, actionable marketing plan. Big or small, home based or enterprise, without a marketing plan you are doomed to failure. You will be jumping at the next golden opportunity that is parlayed to entice you to spend your money with them.

I believe that there are 5 key components to having a good marketing plan. Here they are:

The Right Marketing Message.

There are three questions you must answer for your prospective client:

1. Why do I need it?

Does it solve a problem?
Will it make me feel/look better?
Does it save me time/money?
You must first and foremost answer this question before moving on.
2. Can I trust you?

Do you have any testimonials?
What is your background/experience/time in business?
Do you have any references?
How can I feel assured/guarantees
3. What will it cost?

This is the place where you must deliver value
No one wants to spend money, they want to… see #1
People buy value no matter what the price
I put them in this order because that is the order of importance. Notice that price is the last thing I think about. A good marketing message will answer these questions in a compelling way. Once you write your marketing message you can package it and communicate in many channels.

If you are not good at writing copy, then hire someone! You will lose much more than you save by trying to do it yourself. My suggestion is find a copywriter that can write 80% about #1 and 20% about #2 & #3. Most businesses that do it themselves have it backwards. No wonder they lose.

Know Your Best Marketing Channels.

There are 100 or more ways to market your business. However, not all channels perform equally well for every business. You need to experiment and find the 5-10 channels that work best for your business. This will be the focus of activity in your marketing plan.

If you have the right message, you can adapt it to fit any marketing channel.

Here are just a few to consider in no particular order; Radio, Television, Web Site, Blog, Direct Mail, Local Magazine, Email, Local Networking Groups, Billboards, Auto Wraps, and the list goes on. The key is to see how your competitors are doing it and do it better by focusing on getting the right message out there.

Set Your Marketing Budget.

How much can you spend on acquiring new customers? Businesses must create and operate by a marketing budget. How much you spend can vary by business category, but a good rule of thumb is 8-10% of your gross. My goal for businesses I coach is to get a 10X return on marketing dollars spent. If you are consistent in doing this, every month, your bottom line will grow.

By setting a budget you are more likely to discipline yourself to spend more wisely and effectively. Do you know how much it costs you now to get a new customer? How much do you want your business to grow this year?

You can get a better idea of these numbers in my book “You Learned Business Math in Grade School” available at Amazon Kindle.

Create a Marketing Calendar.

Marketing experts agree, “Consistency is Key”. Studies have shown that it takes from 5-14 repeated messages to convert someone to a customer. That is if you have a good message.

Once you know your best channels/mediums and have your best message, you should schedule your marketing activities on a timeline or calendar. Plan what you are going to say and where you are going to say it, each week/month/year. If you are not comfortable doing this, please hire an expert. You will be glad you did.

Create and Monitor Your Dashboard.

The biggest mistake I see business owners make is not tracking and measuring the performance of their marketing efforts. You must have a “Dashboard” that identifies your activity and tracks to result of every thing you do. You must track every new lead that comes your way. Where are they coming from? Which version of the message did they respond to?

Evaluate every channel each month. Smart businesses know where every piece of new business comes from! Spend more time and money on the marketing activities that generate the most and best leads.

Pay Per Click (PPC) Advertising Simplified

When searching on a search portal, Google or Bing, your advert will occur next to or on top of the organic search results for the search phrase you entered. PPC advertisements are known as “sponsored ads” with the Google results page and “ads” with the Bing results page.

Advertisers place bids for individual search phrases. When a searcher clicks on your ad, you will be charged based on the amount you bid for that search phrase. The more that you’re willing to bid for any specified search term, the higher your advert will appear within the sponsored listings. The larger the pay per click service’s network, the higher the bids the advertisers will be willing to pay for high positions.

It’s important to closely track the performance of your advertising and marketing right from the start. The ultimate measure of the overall performance of the pay per click advertising campaign will be the return on investment (ROI) of every advert.

Pay per click affords advertisers a high degree of control and the capability to effortlessly measure the outcomes of their campaigns. Control is the major advantage of PPC advertising and marketing but considering that all the advertisers with which you compete also have the same control, pay per click campaigns have to have active monitoring and management.

The major attraction that any pay per click service provides to advertisers is its capability to distribute advertising. Pay per click also makes it possible for advertisers to target different geographic locations with a selection of specific countries and languages to target.

A typical Pay Per Click (PPC) advertisement as it’s shown on the search portal.

PPC Advertising campaign management (Headline / Title)

We setup and manage Google AdWords & Bing / Microsoft Advertising campaigns (Description)

domain.name (Display URL)

Headline / Title: The hyperlink in the headline will redirect visitors through the pay per click service to the URL set by the advertiser.

Description: All pay per click services restrict the length of advert copy to a number of lines and/or a specified number of characters.

Display URL: A display URL is shown to reveal to the searcher where the advert will take them. The display URL doesn’t necessarily reflect the exact page to which a visitor will be sent.

Both Google and Bing advertisers can run parallel campaigns using the very same search terms. The same advertisements which are utilized in search results may also appear in Google AdSense and Microsoft Advertising contextual advertising. Google and Bing offer a contextual advertising option through which advertisers can open up their campaigns for distribution by way of Google’s and Bing’s networks, which comprises large numbers of individual Internet websites, news sites, and content portals.

Google’s main advantage will be the size of the AdSense network, as well as the power to reach a variety of smaller Internet websites. AdWords advertisements are always displayed on the Google search portal. Advertisers can decide whether or not to distribute their adverts by way of Google’s AdSense network of partners.

There is a range of second tier players who could possibly offer useful services and more cost-effective advertising and marketing alternatives in many instances. You’ll find Pure pay per click providers, Regional providers and Vertical market providers, who specialize in distinct kinds of products or services.

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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