People have been searching for a way to work from home for ages. The idea of not having to punch a clock yet still have a check at the end of the week is very appealing. Today more than ever, it seems that many are successfully doing this by setting up their own businesses. Here is a list of the 10 Best Home Based Business ideas that some people are finding success with.Tutor – If you are talented with another language, a certain subject like match, a musical instrument or even a retired teacher, this is something that can be done from the home quite easily. You can visit the local schools for information on tutoring students and even advertise around your area.Yoga Instructor – If yoga is a passion of yours, a few courses to be certified as a teacher and some home space to set up a studio is all you need. If you do not mind traveling or have the space you can visit clients at their home for personal instruction.Photography – Digital cameras have made this really popular. If you are handy with a camera and everyone raves about the beautiful pictures that you take, take that gift a step further and make some money from it. If there is room in your home, setting up your own studio is easily done. Or opt to photograph events like weddings or specialize in a certain subject to make your name known. If you have children that play sports bring your camera and take team pictures.Transcription – A popular job for work-at-home moms has become medical and legal transcription services, but anyone with the skills and the right equipment can research this. You can learn this or update your skills by taking a few courses at a community college.Computer repair – Today more than ever computer repair is a big business, especially with at least one in every household. If you are the one family & friends call when they have a problem with their computers, take that knowledge and start getting paid for it. You can have people bring computers right to your home, with an office set up to work in or go on location to do repairs.Event planner – If you are good at organizing and enjoying being in control putting events together, consider getting a contact list together and taking the plunge. Today people are hiring others to organize their events, either because they just have no time and feel they would not do a good job or they have the money too. You may even consider taking some courses to get a certificate in Wedding planning.Pet sitting – More and more people have pets today and are opting to have someone sit for their pet when they are at work, on vacation or at events. If you are crazy about animals and they are crazy about you. Then take advantage of the business opportunity of pet sitting. You could be the person that everyone comes to and take care of their “baby” when they cannot.Gift baskets – If you are creative and love to put unique gifts together this could be your calling. You can sell your baskets online, at craft shows, advertise at other businesses like flower shops to get started.Blogger – Are you able to grab people’s attentions and keep them with interesting things you say? Do you love to write? Blogging is growing in popularity daily and if you are dedicated you can make a nice sum of money with this. Affiliate programs are popular as well companies paying popular sites to advertise their products and services on.Web designer – If you have experience working with web sites and have an eye for design, this could be where you make your success. A rising number of individuals and companies are looking for a talented person to design the perfect website for their needs..These are the 10 Best Home Based Business ideas that are showing success today. But it seems that every week something new is being added to the list and you may have the next best idea for a successful home business. Using what you know and what you are good at can have you joining the growing number of people who work from home today.
The Most Valuable Tool in Building a Network Marketing Home Based Business Is a Good Sponsor
The internet is loaded with valuable self assistance tools for building a Network Marketing Home Based Business. These tools can prove to be a very valuable aide, and for that reason the use of them should not be ignored, but they do not substitute or match in value the constructiveness that a good upline sponsor can provide in the building of your Network Marketing Home Based Business.It has become a natural part of life to type into a Google search bar keywords to acquire information on different things, Network Marketing included. The worldwide web never lets us down when it comes to providing information, and that is a good thing because we live in an information age society. However building your home based business, conclusively using only the systems and tools available online is like a country trying to win a war using only fighter planes. At some point you have got to put boots on the ground.I am someone who is very avid about the internet as a tool for Network Marketing, and try every day to utilize it to its greatest potential, but the methods and systems taught and used are for all intense and purposes the same; Attraction Marketing. Learning the principles of Attraction Marketing will do wonders for the growing process of your home based business, as long as you are consistent with it long term. But as expressed in the analogy above, it is like trying to win a war from the sky, you’ve got to get on the ground if you want to gain the true potential wealth that a Network Marketing Home Based Business is capable of affording you. This means basically, you have talk to people and occasionally shake a few hands.Network Marketing is not meant to be a lonely business run completely in solitude from behind a desk with a computer on it. You need knowledge that you can express verbally and not in just written words. Starting out it is not likely that you will have this gifted tongue to answer immediate objections, but an experienced sponsor who is already seasoned and there to help should be utilized. Once you have captured a prospects level of interest, whether it be through internet marketing or close up conversation, introduce your sponsor and have them speak for you. It is the sponsor’s job to help you succeed. If you have a sponsor that is not capable or willing to make him or herself available to you, go up the chain to their sponsor. If you can not gain sponsor assistance from the leg above you, go to your back office, cancel your account and find a more constructive group to join under. This, by the way, is also a good reason to not be too quick to sign up friends and family. Get some roots in the ground before you fully expose your friends and family to your business opportunity.The purpose in trying to build a Network Marketing Home Based Business is to create an income earning asset from a period of up front hard work efforts that provides continuous future payouts. People often allow their loyalty to friends or family members that they sign up under to get in the way of business. If your sponsor is a friend or a family member, but they do not provide you constructive assistance in building your business give them a little push to let them know that you are serious about building your business and that your loyalty will only go so far. Sometimes people sign up a few friends and family members into an opportunity and then nest with the attitude of; I got my few, now it is your turn. To gain Network Marketing success in its most capitalistic degree, you will require (in the beginning) a good sponsor that you can three way onto telephone conversations to speak knowledgeably, convincingly, motivationally and positively. Seeds in a potted soil need water to grow. Decisions made on behalf of the growth of your business are never personal. Regardless of the educational Attraction Marketing tools you avail yourself too, make sure that you have a good sponsor to help you to stay motivate and positive and speak on your behalf of the home based business opportunity you both represent. Once you have gain the experience it is all a matter of paying it forward, and duplicating members just like yourself. It all starts with good sponsor representation. First you have it, than you become it.
Home-Based Business – Ideas to Find a Genuine Home-Based Business
There are a lot of home-based businesses that are related to Internet. These businesses could be conducted through the Internet from home. Actually, the home based Internet businesses could be conducted from anywhere in the globe, provided that one has a PC or laptop with constant Internet connectivity.These businesses do not need a big area for work, however in time could be expanded in a multi-layer company. Aside from the steady and mounting incomes, there is also flexibility of working hours. Making money, or beginning a business has never been as simple as it is in the present day. This is due to the infinite choices and the demand to go with it. It is a matter of one taking a plunge in something exciting and new.There is not any list of home based businesses in India, because it is one country where the people could start any type of business as well as in time make it revenue generating. This is understandable that loss making projects do not subsist. There are a lot of people who have burnt their fingers while investing in a business. However that is not the end of the globe. In reality, a loss making or unsuccessful undertaking is an example well learned as well as the situation could be reversed if the errors and mistakes are taken into account.There are opportunities in large numbers; it is all about making the majority of them. There is a lot of literature which guides people to start their own business as well as running it to make it a flourishing venture. There is plenty in terms of business ideas with the sources of supervision and help.The online businesses provide such terms of working. There are offers that need people to put in a couple of hours, at their ease, and do pay sensibly well. The majority homemakers keep searching for the offers like this, because it provides them something creative to do in their extra time, in addition to financial liberty to a certain level.Every day all kinds of people, from all around the world decide to give up their jobs for working at home with their personal home based business. With all the business layoffs, employee downsizing, need of jobs, higher gas prices, as well as long commutes; it is now essential for a lot of people to generate money online with work at home job, or start their home based business. When making a decision on a work at home or home based business prospect, it is very significant to be acquainted with who you are coping with.There is plenty of work at home jobs as well as home based business opportunities on internet. A lot of them are cheats and schemes; therefore you need to be very cautious while selecting any business prospect. Though, there is also a lot of genuine work at home jobs and home based business opportunities on internet that could assist you to make money online.Some of the most vital factors to look for while searching for a genuine home based business opportunity are:1) Should have very good services and products to promote
2) Should be in good standing with the Business Regulation Agencies
3) Must have been productively in business for a minimum of three years
4) Should send paychecks out at least once in a month (on time)
5) Must have a great support, leadership and training.
Home Based Business: Vast Opportunities Around
A home based business can be a viable option for anyone to earn a full-time income or just to have some extra on the side. This is because there are a lot of home business types that can match almost anyone’s skills, talents and interests which can be turned into money-making products and services and business ventures. Whatever skills or knowledge you now possess, be it from your studies or developed through your work experience can be your competitive advantage which could generate you earnings and profits as you live the dream of working from home!Your home based business opportunity depends on what you are most into. One of the most common online business opportunities found online are for marketing products. There are a lot of companies that offer membership and sales opportunities which earn income from sales commissions or from recruiting new members. All you need to do is sign up and pay a certain amount of investment for membership and some products to sell and the right to sign up other members. You can promote and sell these products through a website which may also be provided for you. If you have a penchant for sales and marketing, and possess natural people and social skills, this type of business may be right for you. It’s best that you are most comfortable in dealing with people to maximize the earning potential for this particular business type.You can also set up an online shop that will turn your technical expertise into sellable products. If you are an IT professional, you can offer web page design services, create application software or create a members-only website, such as game and entertainment sites, for example. You can charge a membership fee for a username and password for exclusive access to your site’s contents. You can promote your home based business with a website of your own, and can deliver your IT products via email or through downloads. Either way, this virtually eliminates the need for physical efforts to deliver your wares, receiving payments and other transactions. Other technical skills in demand online are technical plans, financial record keeping and legal advice, just to name a few.People on the creative side can have a good home based business opportunity as well. There is a good demand for freelance graphic artists, advertisers and other creative services providers. One of the most common work-from-home opportunities calling for creative skill is online writing. If you are most skilled in languages, grammar and have a good way with words, an online writing gig could earn you lots from just by working in front of your computer and doing research. There are a lot of websites offering full or part-time writing jobs to be used as contents for the millions of websites born every day. All you need is a computer, internet access and to apply for the writing job. You can choose projects and have flexible time schedules so you can write and earn even during your free time.Any type of skill, any talent you may have and any time you spend can be a money making opportunity for you. Harness these skills and get the right methods to sell and promote them and succeed in competing in a dynamic online business environment. What you have now are your primary tools. Realize their income potentials and let them be your key to a better and a freer lifestyle by sharing it to the world with an online home based business.
Why Do Small Businesses Raise Money From Friends and Family?
Small businesses face many challenges and one of them is obtaining funding at the beginning.We noted that 42 percent of entrepreneurs go to family and friends to raise money. Annually this figure is $50 to $75 billion for U.S. startup companies, which is about three times greater than funding from either angel investors or venture capitalists.A further breakdown has shown that 82% of funding will come from either an entrepreneurs’ own savings or from friends and family. A number of reasons can be attributed to this avenue and here’s a few.Immediate Funding Right AwayTo raise money, going to family and friends can result in immediate funding. By approaching these connections, the entrepreneur knows they will already have available funding and he can avoid going through extensive financial background checks and voluminous paperwork.Small businesses may also lack some business savvy and by going to family and friends they may be more comfortable talking about the opportunity and asking for money.Only Available Funding at the BeginningFor some small businesses, funding from family and friends may be their only source at the start as sometimes banks and government grants may not be available to them due to a lack of credit, a business track record or an established business model.It is family and friends that will fund the small businesses at this time. Entrepreneurs will then focus on creating their products, services, business models, offices and business plans.You already have a relationship with family and friends: they believe in you and your visionFor many entrepreneurs, their small businesses have been a dream for quite some time and a passion. When this is the case, they have likely been speaking about this with family and friends, gaining their support and sharing their vision.Family members as potential sources of funding may include parents, grandparents, aunts and uncles, neighbors as well as childhood friends.By receiving funding from this group, they are investing in the entrepreneur’s small business because they believe in him. They also know his desire to succeed and his work ethic.Family and friends invest in people, not necessarily small businesses.Lower or no interest on the loanBy going to family and friends, they may charge a lower interest on a fundraising loan as they know your current financial situation. Small businesses will also be able to avoid fees and penalties by structuring through families and friends.In some situations, the money may even come as gift, further decreasing extra costs and excluding interest. The loaner may have an interest to give additional funding in the future and become a partner.This can provide small businesses with an opportunity to put more money into the business right away while paying off the loan and not worrying about financial constraints.Lower attorney feesBy receiving funding from family and friends, the structure of the loan may be less complex and require less documentation. It is important to have an attorney review this but by setting it up in a simpler manner, future changes may be less intensive and costly.Regardless of the amount borrowed from family and friends, it is still important for small businesses to have a business plan and proper documentation as well as act in a professional manner.Have these reasons further spurred your interest in borrowing from family and friends? Here’s a success story that may inspire you.Nike Started with Family and FriendsPhilip H. Knight, co-founder and the current Chairman of the Board for Nike, Inc., got the idea for his business when he wrote a business plan for a Stanford MBA class assignment in the 1960s. He dreamed up a company that would sell shoes to athletes through the paper, “Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?”This assignment was to answer the question of whether or not a shoe could be designed and manufactured for less with better quality than the current market leader for athletic shoes, Adidas.Knight was so inspired by the assignment he then went to Japan and met with Onitsuka Tiger Co executives, a manufacturer of fake Adidas shoes. He said he was the head of a fictitious company named Blue Ribbon Sports and that he wanted to distribute Tiger shoes back in the United States. Tiger officials accepted his pitch and sent samples to him after Knight said he would give them a big order once after he showed them to his business partners (but no, he did not have any).When he returned home, Knight borrowed $500 from his father to start his business and pay for shoe samples. Keep in mind this was the 1960s and in today’s dollars and cents, this is equal to about $3,700.After Knight received the shoes, he sent some to his old running coach Bill Bowerman, hoping he would purchase them and show the shoes to his runners.It turned out even better: Bowerman gave Knight $500 and the two became partners in 1964.The rest you could say is history.
Ensuring A Profitable Home Based Business Opportunity
If you would like to be one of many who has found a home based business opportunity and become successful with it, then hard work is going to be needed to achieve this goal. A home business opportunity is quite popular now for various reasons. Some people need a home business to help them supplement the income received from there regular job, while others need the home based business as a way for them to keep busy as they might not have another job.
There are many different and numerous types of home based business opportunity for people to become involved in. They range for medical transcription services, to selling cosmetics and toiletries. Each opportunity is unique and suitable for just the right kind of person. There are a number of people or companies who will try to convince you there home business opportunity is perfect for you, when in fact, it might not be. It is up to you to weed through all of the different opportunities to find one that will make you successful. The question, which now arises, is how to ensure that when you have started your home business opportunity that is a profitable one?
You should be aware that a profitable home based business must first start with the correct home based opportunity. Most people choose a home business opportunity, which is quite popular, and everyone knows about. However, the problem, which arises with this, is, without realizing it, the market has already become saturated with many people selling the same product. In this way, your chances of having a profitable home business will diminish due to over availability of the product. On the other hand, choosing a home business opportunity that no one has ever heard of is too risky if this is your first time working with a home based business opportunity. Just because a product or concept might be new, there is no guarantee that it will sell. Therefore you run the risk of not making a profit at all with your home based business opportunity.
In order to ensure you are on your way with a profitable home based business opportunity, everyone thinking about working at home, should think about the amount of money necessary in starting a business. Each different type of home based business opportunity will require various amounts of time and finance dedicated to the job to make it work. For you business to be profitable, it is necessary to first plan out how much will initially be invested into it. A new startup business can quickly drain a bank account if a business plan is not initially drawn up. Therefore, to ensure you business is a profitable one, spend time budgeting out your much money will be allocated for each aspect of the business, and stick to this business plan without spending carelessly.
When first starting a home based business opportunity, a lot of hours are necessary in order to make the business as profitable as possible. This would initially include time spent away from family and friends growing your business to a stable level. Therefore, to ensure your business is profitable, the hours spent away from loved ones must be factored in.
After considering the amount of money and time which is needed to make your home based business opportunity profitable, the most important advice would be to start marketing your business as much as possible. There are many forms of business marketing available such as word of mouth, business cards, brochures and flyers, or ads in the newspaper. Yet whatever type of marketing you choose to adopt, be consistent with it. With more people becoming aware of your business, and telling their friends about it, the more profitable your business will be.
Leading a Small Business Strategically
On Monday morning, the business owner returned from a long vacation to find his business closed. He was left with a note on the door that read, “This is to inform you that I’ve resigned. You left me to act in your behalf, but you didn’t tell me about these problems. The bills were months behind. Your suppliers were calling because they hadn’t been paid. You left me with several personnel issues that I didn’t have the authority to correct. I tried to deal with these matters responsibly, but they continued to grow. Why in the world would you leave us in such a hostile climate?”
Today, many small businesses are experiencing the realities of global competitions. Many companies feel that they must restructure to stay competitive with world markets. After 18 years of managing projects and conducting over 100 organizational evaluations of business organizations, I realize that both large and small organizations struggle in implementing their operations effectively. According to a 2004 Small Business Administration (SBA) study, 580,900 small businesses opened in 2005, and 576,200 closed. The SBA noted that 67 percent of these new companies were able to survive at least 2 years, while 44 percent survived at least 4 years. What can be done to help small businesses achieve more market success? I have seen the benefits of strategic thinking in large successful organizations. Strategic thinking may be what a small business needs to sustain growth. Small businesses that cater to the workforce’s needs in the future workforce will gain a competitive advantage.
There are four critical factors that will be discussed for gaining this competitive advantage:
(1) inspire vision,
(2) define core competencies,
(3) apply strategic thinking, and
(4) connect with employees.
Vision
Employees want to know that their leaders are focused on the future as well as today’s problems. Vision is a key ingredient to keeping businesses on target. James Kouzes and Barry Posner, authors of The Leadership Challenge, conducted research on sixty thousand organizational leaders. They note that highly effective leaders inspire a shared vision: “To enlist people in a vision, leaders must know their constituents and their language. People must believe that leaders understand their needs…”
A leader who has a clear vision can assist in guiding his or her organization. Most business leaders are too busy with the current issues of today and find little time for vision building. This leaves workers as well as the organization unfulfilled. Having a shared vision provides the small business a competitive advantage. Some critics will argue that a vision is not critical for small business success. This is simply not the case. Visionaries concentrate on future opportunities, not today’s limitation. Vision relates to the ability to look beyond physical constraints of the natural ream. While other organizations are engaging in trivial matters, an effective small business leader should inspire his workforce with a shared vision, thereby meeting their purposeful living needs.
Core Competencies
Leaders should clarify their core competencies with workers during rapid change. In times of restructuring, an organization should maintain its core functions. On the contrary, large businesses try to compete by quickly extending themselves in the marketplace, thereby becoming “all things to all people.” Their workers become confused because inconsistency and uncertainty exist. Companies find themselves doing things that they are not part of their organizational competencies. This provides a good formula for failure. In an effort to compete with global competition, many organizations downsize or ree-ngineer their processes, but lose their core competencies in the market.
C.K. Prahalad, author of Competing for the Future, maintains that senior managers sometimes do not perform their homework in order to compete with the rapid market changes. He notes that restructuring is usually a dead-end initiative; however, re-engineering that eliminates unnecessary work and enhances processes is beneficial because it is directed toward company objectives such as customer satisfaction or total quality initiatives. Therefore, communicating a clear focus on core competencies is a competitive advantage for any business. Understanding a small business’ core competencies is an important element in organizational growth. Leaders then become the instruments to ensure that workers’ assurance.
Strategic Thinking
Employees want to know that their leaders are critically evaluating the market and industry competition. The enormous demographic changes within the 21st century American workforce are creating personnel issues for organizations unwilling to change their paradigms. Exemplary organizations think strategically and operate in duality. Watt Wacker, Jim Taylor, and Howard Means, authors of the Visionary Handbook, admonish that we live in an Age of Possibility where individual are able to claim their own future. They explain, “Fail to build your own future, and someone is going to build one for you….”
Most businesses engage in some type of planning; however, few organizations properly engage in strategic thinking. Therefore, this becomes a competitive advantage in the marketplace for small businesses. Strategic thinking is more than meticulous planning in an organization. Strategic thinking consists of two components that are knowledge about the present and foresight about the future. Organizational strategists call this duality. Successful businesses exercise this phenomenon routinely. Most small businesses are concerned about today’s customers or tomorrow’s contracts but have little regard for future consequences. Some of the characteristics of effective strategic thinking include focusing on important issues, maintaining a long-term view, appreciating consequences, and remaining flexible. Strategic planning and vision work together because proper planning provides the basic framework and rationale for determining an organization’s direction while addressing the day-to-day challenges. Therefore, effective organizations go beyond detailed planning into a mode of strategic thinking.
Connection with Employees
Effective organizational leaders understand the important of connecting with a culturally diverse workforce. On numerous occasions, companies sing the praises of new technologies while workers are often devalued in the process. Leaders should see followers as more than mechanical parts for their organizational objectives. Jeffrey Pfeffer, author of the Human Equation, acknowledges that an organization’s success is directly related to its implementation, and this capacity comes from the workers, how they are treated, their skills, and their efforts as it relates to the organization.
The Emergent Workforce now crosses gender, age groups, race, and geography. Employers must now deal with four generations in the same workforce for the first time in American history. The leadership style that may be effective for a Baby Boomer employee may fail with a Generation X employee. Some of the cultural changes include the acceptance of downsizing as a part of work life, the traditional family decline, the competitive nature of a global business structure, and the advancement of communication technologies to build person-to-person relationships. Some of these factors have impacted the workers attitude about their job and the quality of life. Today’s employees do not want to be a component in a big machine; they want to be valued because they are more than a physical being. In the quest for profit, many large businesses lose focus on the importance of socio-technical systems.
However, small businesses cannot afford this luxury. Large organizations have difficulty adjusting to the personal needs of their employees in a rapid, competitive environment. Cultural and social changes place an additional burden of their flexibility to operate. This is a distinct advantage for a small business owner. Staying connected is critical to this success. Therefore, an effective leader in a small business must maintain a good relationship with his followers to assure credibility with the group.
The Path Forward
In spite of global pressures and front-line competitions, small businesses can achieve a high level of success with the right approach. The 21st century provides a brave, new world of personnel challenges such as virtual organizations, outsourcing, and the financial constraints of declining budgets in many federal agencies. Small business leaders can apply five critical factors that are vision, specific core competencies, goals, strategic thinking, and connection with employees. These problems then become an opportunity for small businesses to level the playing field thereby increasing their success rate. Therefore, these methods provide a logical, practice process for starting, growing, and sustaining a successful small business. Start today and grow your small business!
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.