Top New Home Based Businesses

Top new home based businesses are available in online marketing, network marketing and affiliate marketing. Internet marketing has revolutionized the way businesses all over the world are connecting with their existing and potential customers. It is a great way to promote their products and services online.Most companies, which provide their members the opportunity to earn additional income, also provide training as part of the program. The training kits consist of tutorials and videos, which explain in easy steps the various concepts and strategies to be followed.Members who join the various programs which are on offer are required to pay annual or monthly fees. In certain cases the membership is free subject to fulfillment of certain conditions. Top new home based businesses might require their members to sell their products to customers, which will then make them eligible for commissions.There are various compensation plans available for members and for some programs, as the rank of the member increases, so does their commission earning capacity. Members usually join at a particular level and as they achieve sales, they will progress to the more profitable rank levels. It is very important to build a good team of individuals as their performance will also determine the commission earned by the member.There are a number of legitimate MLM opportunities, which provide the potential to earn lucrative income in niche areas. Members would be able to earn a residual income from the MLM business opportunity. The members can make their choice of type business based on the reviews available on the internet. Companies, which promise the stars could probably be overstating the truth about their business and could be using exaggerated income figures to sell their business.The most genuine companies online would always make it clear that significant work and effort are required, as well as, state the facts about what opportunities they provide. Individuals must be aware that some companies will make false claims and promises to promote their business.There is a growing number of legitimate opportunities online, which offer their members a substantial amount of money. It is important to remember though, that it requires significant work and perseverance. Top new home based businesses are not get rich quickly concepts as it is necessary to have a solid work ethic and some skills in internet marketing to be successful.

How to Start a Home Based Business

To Start a Home Based Business does not mean that a person cannot have the official work environment and the fancy paper work, and that it is not a legal business. A home business is an easy way to start making money. The best thing about the home business is that the investment it demands is typically small and easy to handle, also it can be easily managed through simple ways. Anything involving the exchange of goods and money is business, start a home business if you think you can provide something people will buy.There are a few things that can help the business flounder from the start. First things first, the person starting the home business must have a clear idea of what the people want to buy and what he/she can offer, only then can a business prosper. Analyzing the market before jumping right in the middle of it can prove very useful and can save lots of time and money.Advertising is very important in business. Internet is the best platform to advertise, it is free, easy, and everyone uses it. One of the basic needs is to create a website or an online account where people can look at the products available from the creator. Promoting a website is not an easy job, one starts from telling their friends and family and goes as far as paying successful bloggers to promote their websites and other SEO methods. Once out in the open market,quality control and an active mind is necessary to keep the business afloat. Using one’s hobbies to help in the business might be a good idea.Online home business is not always about physical (hardware) goods.There are a lot of people providing tips and advices to people in their respective fields of life. Suppose if someone can play a musical instrument really well, they can teach stuff online and charge their visitors with membership fee etc. if someone is good at giving people psychological advice then they can start a home business about that,the things that matter are being professional, skilled, authentic and legitimate. People do not pay for copied stuff and even the slightest mistakes may turn down a whole business. In this type of work, the person may also need an assistant or an advisor who can share the work load or provide answers to what the publisher him/herself cannot answer. This can be a very healthy practice.If the person wishes to start a home business selling physical goods then hiring the services of a drop shipper becomes almost necessary. A drop shipper may store your products in their inventory and provide them to customers at the designated time. A customer logs on to the website and places their order. The attendant at the website would then have to inform the drop shipper of the customer’s details(address, contact etc.) and the drop shipper would transport the product, very simple. A home business may be one of the easiest ways to start making money also establishes a firm understanding and work experience of the market.

The Great Canadian Home Based Business Opportunity

An Affiliate Online Business Dealing With Whatever Product you wish.I am frequently asked, “What is the greatest Canadian home based business opportunity?” That is an easy one to answer, especially in these times of economic uncertainty. An online affiliate business allows you access to the largest market that has ever existed on earth. It is free, there need be no risk and you are the only limiter.Nobody cares if you live in downtown Vancouver or 20 miles outside of Elkhorn, Manitoba. You live in the Yukon? Good for you! You have longer nights to focus on building your business!I am not talking about peddling vitamins out of home or make up. I am talking about an affiliate online business. I am talking about selling anything from tomato plants to corporate jets, paving machines or do-it-yourself videos.This is the great Canadian home based opportunity because:1. The Canadian Home Based Business Opportunity involves no risk. You can sign up to be an affiliate for thousands of different companies anywhere in the world. Not one should charge you anything for becoming an affiliate for them. If someone wants a fee or wants you to pay for a membership, leave the site right away. It is a scam.No fees means no risk. They handle everything including shipping of whatever the product is, customer issues, and so on. You are free to do your business. You don’t even need a web site although it is advisable to have one and you can even get one of those free. As a Canadian, I know how geography can hinder many people’s hopes of building a successful business. The affiliate opportunity allows us to prosper anywhere even in the remotest areas.2. The Canadian Home Based Business Opportunity does not require special education. For people who have never completed high school, affiliate marketing is the great equalizer. What is required is ambition, desire to succeed and work. Nobody on the internet cares if you know the difference between a molecule and a shovel handle.You will have to learn about how business is done on the web, however. Fortunately, everything you need to learn you can pick up for free. Massive libraries of excellent free ebooks and training videos are yours for the asking.You will have to learn about getting traffic to your site page, lens or hubpage. Do you want organic traffic, SEO’d articles or PPC to deliver people to your offering and so on. Take your time, try, learn and you can quickly build the most profitable home based business in Canada.Where you live or the local economic climate has no bearing on how successful you will become.3. The Canadian Home Based Business Opportunity does not require you to quit your job. This is another reason it is the best Canadian home based business opportunity. You build as you learn. If you make a mistake, so what? It hasn’t cost you anything but some time and you are getting an education you can’t get anywhere else in the world at any price. It does not matter where you live as long as you have internet access. You can even do it with a dial-up connection, but you might develop suicidal tendencies after a while.Jobs are few and far between in this country. You need not jeapordize yours as you try to better the situation for yourself.4. The Canadian Home Based Business Opportunity – There is no cap to your earnings. No one will come along to tell you that you are making too much, that you are moving ahead of your peers too quickly. You have no peers and you have nobody to judge you. There is no upline to please and so forth.An affiliate home based business offers you true freedom. You are free to pursue your heart’s desire either marketing something you don’t particularly care about, but you believe will be highly profitable or you market something that is your true heart’s desire.Or both.There is no limit to how many sites or affiliate products you carry. This is the perfect chance for a Canadian living anywhere in this great remote land to prosper.Can you see why affiliate marketing offers opportunities beyond the wildest imaginings of the average Canadian? Even with the incredible land mass of our beautiful country, we can build world class companies from our kitchen tables in our underwear. (Make sure to close the curtains!)

Home-Based Business: Should You Start One?

You’ve asked yourself this question for the thousandth time. You’ve heard all the hype and skeptically turned your head away from the opportunity, only to find yourself attracted to it once again. You’ve seen the advertisements and laughed at the idea, but somewhere deep inside you wonder if it’s really possible.The question keeps coming back…Is it crazy starting a home-based business?With all the negative misconceptions surrounding home-based businesses, I feel it is important for you to understand the main reasons people start a home-based business in the first place. The purpose of this post is not to sell you on any one business opportunity or to convince you to even start your own business.The purpose is to help understand the mind-set of individuals who seek to create a different future for them self and/or their family. Perhaps you landed on this article, because you are looking for a better way to secure your future.Maybe you have already convinced yourself to start a home-based business, but are skeptical that you even have what it takes to succeed in your own business. Whatever your purpose may have been that found you reading this post, I hope you take away a fuller understanding of what led you to the world of entrepreneurship.It is well known that a home-based business is not everyone’s cup of tea. So, why do so many even venture into this career path?1. Dissatisfied With Current EmploymentHow many of you have walked into your place of employment bright and early on Monday morning and said to yourself, “I can’t wait for Friday afternoon to come!”? I can safely assume that the majority of you right now are raising your hand in your mind.There is no shame in feeling this way. Most of us live for our weekends, when we can relax with our families and get tasks completed from our to-do lists. We can sleep in past 6:00am and go to bed later than 9:00pm.Weekends = Freedom.Now, many are perfectly content with staying in their current 9:00-5:00 job. This is okay, because this equates to familiarity and stability for so many.For others, however, they are dissatisfied with their job and with the restrictiveness of its expectations. They are tired of missing birthdays and holidays, vacations with the family. We spend more time with our co-workers during the day than we do with our own family and friends.Activities and events are all planned around our work schedules and, many times, it is easier to just cancel the event than to try to request the time off from work.Now, there are two types of individuals who are dissatisfied with their current employment: those that are hungry to do something about it and those that will continue punching that time card. Again, it is respectable to stay in one’s current job, because they are taking care of their responsibilities and, possibly, working hard for that next promotion.However, for those that are hungry to make a change, starting a home-based business has proven to be the answer to their problem.As a home-based business owner, you make your own schedule and you dictate the amount of time you are able to spend with your family and friends. You are afforded the luxury of time, because there is no boss to report to but yourself.2. The EconomyIt is no secret that the state of today’s economy is one of uncertainty. Property values have fallen and unemployment rates have risen. Recent college graduates struggle to find employment, after racking up thousands of dollars in student loans. More and more families have to apply for government assistance just to meet their most basic needs.We are currently in the middle of a presidential election year and what has been a significant focus of both campaigns? The economy.With the current state of the economy, more and more people are looking for ways to secure their financial future, because they are not confident in placing this in the hands of their employers and of their government.With a home-based business, many have been able to start building a financial cushion for them self and for their family and all from the comfort of their own home. This is especially suitable for those currently employed and/or have families, as they are able to grow their business part time if need be.3. Financial Freedom & SecurityWith a home-based business, the potential to earn a significant amount of money is so much greater than with a traditional job. In a regular private or government job, the only way to increase your income is to obtain a promotion or get hired in a higher paying job.With a home-based business, your efforts and commitment truly does predict the amount of money you can earn. There is no interview, there is no politics. There is simply your ability to reach the maximum amount of your target audience (your ideal consumer) and be able to attract them to your product or opportunity.The dream of financial freedom and security is realistically attainable, and more individuals are recognizing this potential within the home-based business industry. Financial freedom and security is important to many in various ways, but there is one common benefit to all: the opportunity to live the lifestyle one has always dreamed of.

Small Business Struggling? Take a Pill, Dude!

Is your small business struggling in this recession economy? No problem. Very soon you will be able to pop a pill and rewire your brain so you think like the most successful entrepreneurs in the world. Imagine popping a pill and suddenly having Robert Kiyosaki or Guy Kawasaki in your brain. You’ll think like a business guru-no joke! Cambridge University scientists have announced that there may someday be an “entrepreneur pill” that will help people replicate the brain chemistry of the most successful small business owners. Would that be better business through chemistry?In the Meantime …Unfortunately the entrepreneur pill isn’t available quite yet. The bad news is that small business owners need it more than ever. Shrinking profits and dwindling customer traffic have many small business owners pulling their hair out. Luckily, they can take steps to gain a fresh perspective on their business, even if they can’t yet directly access the brain chemistry of small business guru.If your small business is struggling, here are five ways you get a fresh perspective on your small business.1. Give Your Business a MakeoverTo give your small business a makeover you need new ideas and help from some experts. While you may not be able to afford the pricey consultants who do makeovers on major corporations, you can benefit from their advice without paying a dime. Check out Small Business Makeover section on the CNNMoney website. There you’ll find makeover case studies on all kinds of small businesses from carpet-sellers to bath-and-body stores. If you’re offering your products or services online, you’ll be delighted with their Website Makeover section.2. Get Your Burning Questions AnsweredIf you want to get a direct answer to the burning questions you have about your small business, you can always submit it to the CNNMoney directly through their “Find Business Answers” form. There is no guarantee that your question will be selected to be answered, but there’s definitely no harm in trying. As a bonus, it still doesn’t cost you’re a dime. CNNMoney usually puts this form at the bottom of its articles. To locate one of these articles just Google for CNNMoney + “find business answers.”3. Access Online Training from the SBAThe Small Business Administration has recently begun offering a number of online courses on “Surviving in a Down Economy.” The new courses include:- Strategic Marketing: How to Win Customers in a Slowing Economy
- Down-Shifting in a Slowing Economy: Business Planning Guide
- Raise new capital / Refinance exisiting debt – How to Prepare a Loan Package
- Diversify with federal contracts – Business Opportunities: A Guide to Winning Federal Contracts4. Look for a Geographic CureIf you run a bricks-and-mortar business maybe you’re not located in the right place. To locate your business at the right place at the right time, check out the top 100 places to live and launch a small business by Fortune Small Business. These include the 7 tax-free havens for business (Wyoming, Nevada, Florida, Texas, Washington, New Hampshire and Tennessee) plus the six best towns where technology thrives (Bellevue, Portland, Boise, Blacksburg, Bethlehem, and Folsom). The list is nearly endless and may help you decide if it’s time to move your small business because the grass is greener on the other side of the state line.5. SCORE BigSCORE is a non-profit group of 11,200 retired executives who mentor small business owners across the country for free. According to their website, “SCORE offers free and confidential advice to small businesses: face-to-face counseling, online counseling, online workshops and more.” You can post your questions to their website and get an answer, usually within 48 hours. Best of all, SCORE is an unlimited resource. You can ask as many questions as you want plus access their huge library of small business resources.So what’s the bottom line for small business owners? While you may occasionally feel hopeless you are definitely not helpless. This list is just the tip of the iceberg in terms of the inexpensive resources at your disposable to keep your small business afloat. So until that entrepreneur pill hits the market, get going and get help.Have you been using any other small business resources that have proven very successful for you? I’d love to hear about them!

What Is A Niche Market And Why Choosing One Will Help You Succeed?

For the last little while, about a month and a half ago, I decided to start another website in addition to this one I currently have.

I’ve wanted to create another website for a while now, but haven’t had the opportunity.

Basically because I was focused on providing content and trying to make this site the absolute best I could make it. But the thought and concept of this other website, which I won’t reveal at this moment since I’m still monitoring results, has been eating away at me for quite some time.

But I got to thinking about that other site ALOT over this American long weekend that just passed (Thanksgiving). I was talking with an associate of mine, the same one that I mentioned in SOI Podcast 002, and he was attempting to work on yet another project.

This time though, it would be a blog/website about marketing.

Curious to know where his newly found knowledge of marketing came from, I simply asked him.

He simply replied that he had absolutely no intention or writing a single word. He’s going to outsource all of his writing to others and build up his site by link building and social media.

After all, that’s how the pros do it, he added.

(In my mind, my hand was slapping my head repeatedly but I continued to ask questions.)

So I asked him what made him believe that this business will work when other business he worked on before, failed.

“Well because people are interested in marketing. Whether it’s affiliate marketing, direct marketing, email marketing, offline marketing, whatever type of marketing it is, they’re interested in. And I’m going to bring it to them. I’m going to be a one stop shop for all of their marketing interests and questions.”

“After all, that new website you told me about is almost the same thing. It’s a one stop site for information relating to what you’re talking about.”

That comment had my heart pounding.

The LAST thing I wanted was for one of my sites to be considered one giant hub for a wide variety of information.

So on Sunday night, when I went to check out some of the content that I already wrote for that website, my stomach was in a knot.

My associate was right.

The content I had already wrote did come across as being all over the place. Which is something that I didn’t want. And if you’re creating a site, it’s not something that you want either.

Creating A Blog About Everything Is A Horrible Idea

Sorry to say this, but there’s at least a 75% chance that my associate is going to fail in this new business of his.

The main reason is because he’s focusing on too many things.

He plans to have relevant content on affiliate marketing, content marketing, social media marketing, etc. and having your hand in many baskets at once is a sign for trouble.

Mainly because you can’t specialize.

Let’s say, for instance, I was interested learning about email marketing and from learning as much tips as I could on email marketing. If I went to his website, I would be greeted with post on email marketing and almost every other type of marketing out there.

Basically because he chose to cover all topics instead of specializing in just one.

If I came across a situation like that, more than likely, I would search for another blog that is 100% dedicated to email marketing and would be more inclined to follow the tips, strategies and advice that person gives.

If you’re thinking about creating a site about everything, you need to seriously reconsider.

If you do a search on the Internet, you’ll find that a lot of people that are the most successful, are the ones that are focused in on a niche.

And that’s what you should be focused on.

What Is A Niche Market?

I looked up Wikipedia to find their definition of what is a niche market. Here’s what they had to say…

“A niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.”

Pretty self explanatory.

Unlike the example I gave earlier about an associate of mine, and his determination to focus on the wide market, when you focus in on a niche market, you’re focused on one particular thing. For example, instead of focusing on all of the marketing markets, each one of those markets are separate niches.

Creating a marketing site around social media cater to those who want to do social media marketing.

Blogging about email marketing tips & tricks would be welcomed by those who want to see better results from their email marketing campaigns.

And so on.

How Can Choosing A Niche Market Help You Succeed?

If you haven’t already started writing about a specific niche in your market, then there are two things you definitely need to remember that will help you succeed.

1. Make Sure Your Niche Isn’t Too Wide

The main reason that you DON’T want to have a niche that’s too wide is because you won’t be able to build a targeted audience.

If you’re interested in health, you can certainly write articles related to health, but there are just far too many topic to cover. And because there are so many topics to cover, you most likely will struggle when it comes to getting any quality traffic to your site.

Sure you’ll probably get some visits to your site, but people should generally know what your site is about when they first visit. If you have one post about acne and then another post about pregnancy and another post about pregnancy, then visitors will be confused about what your ultimate message is that your site is trying to provide. And that will hurt any attempts to turn them into subscribers.

But say, for instance, you were interested in a topic like How To Stop Acne or Acne Remedies, then you would write about that and that alone. Any audience that you will build from that, will be of people who are interested to learn as much as they can about acne remedies and how to stop acne.

And that list will be much easier to build that way rather than just writing about a general topic like health. Mainly because you’re delivering that specific information, and only that specific information, that they’re looking for.

To succeed with your niche market, you must try to niche it down as much as you possibly can.

But also…

2. Make Sure Your Niche Isn’t Too Small

Now, there’s a thing called niching it down too much. Which you really don’t want to do.

When you choose a niche that’s too small, you won’t get enough visitors and you won’t be able to build your blog. This is mainly because there just aren’t too many people that’s interested in the topic.

For example, let’s say you were interested in knitting.

Now that topic of knitting is a HUGE topic and something you really shouldn’t focus on by itself. So you decide to find a niche to focus on. And you see the wide abundance or clothes and boots for dogs but nothing really for cats. So you decide to have your niche be “knitting mittens for kittens”.

Yes, you have certainly selected a niche market, but it may be far too small of a market for you to succeed in. So by knowing this, you shouldn’t focus on “knitting mittens for kittens”, but instead “knitting mittens.”

When you’re trying to figure out your niche market, there are two things you need to remember:

1. Would people read my site and the niche topic I’m talking about?

2. Would people be interested in my site overall?

Final Thoughts

Everything in this post is what I told that associate regarding his new attempt in business. Regardless, he’s fixated on creating one site and making that the hub. Even though I told him that crating multiple blogs on the different topics he’s interested in would be the better choice… since he’s outsourcing everything.

He disagreed.

But I’m tell you this… if you are interested in a topic that has many layers to cover, create multiple blogs on the different topics you want to create.

This is probably the best method to choose that you would be the most successful with.

Sure it’s a lot more work, but by doing it this way, you’re sure to see much better results because you’ll be creating a single website for each of the topics.

If you want to create a successful blog, then I highly suggest that you focus on one particular niche. Because at the end of the day, nobody’s truly winning when you try to write about everything.

You’re losing out because you’re not putting your best efforts in to solve the problem.

All you’re focused on is coming up with more content that may or may not be useful to them. And your readers are losing out because they’re not getting their questions and concerns completely answered.

The Significance of the DVD Advertising Scorecard

The DVD advertising scorecard is a measure for determining the efficiency of using the DVD as a primary marketing tool for promotion.

DVD advertising can be seen as an innovative alternative to CD advertising. Both of these media advertising techniques are tools containing catalogues with more advanced features containing images in audio and video qualities. DVD advertising, though somewhat similar to CD advertising, has been regarded to be more astute probably because of the popularity of DVDs among home theatre consumers and markets. But regardless of their distinct qualities, both of the advertising tools would have similar indicators to determine their efficacy in bringing awareness to the target audience.

Unlike other forms of advertising, DVD advertising is characterized by having high cost per contact. Promo-DVDs are considered to be expensive largely because of the advancement of technology used. Because of the involvement of exquisite cost, it is only proper to determine the effectiveness of the adverting tool.

DVDs are mostly used as advertising tools in the entertainment business. Because of its classification as cinema advertising, this form of advertising has been used by advertisers in targeting audience and markets. In this case, there is a good targeting approach making DVD advertising a viable tool for providing awareness directly to its target market. DVD advertising can be seen as support to advertisers and marketers that use direct marketing approach in advertising campaigns.

Advertisers and companies must be aware of the cost in developing this advertising tool. It is vital then to measure the cost prior to and after the stage of the marketing campaign. The cost, budget, and revenues are indicators of DVD advertising belonging to the financial perspective of the DVD advertising scorecard.

In the internal business perspective, there should be an involvement of evaluation by the stakeholders. Advertisers and companies must expose the promo material to the management, employees, shareholders, and other internal personnel for evaluation and appreciation before distributing it to the target market. The result of the activity can be used as indicator in the internal business approach of the scorecard.

Receiving feedback from stakeholders is as essential as receiving feedback from clients and target audiences. Advertisers and marketers can maintain a record of the number of promo material distributed and a list of potential markets and buyers. From the list, they can conduct inquiry to gain feedback, which is essential in determining the performance and factors for modification and improvement.

The customer perspective of the DVD advertising scorecard may include indicators, such as delivery performance to customer by date and volume, customer inquiry rate, and customer feedback. Inquiring the customer about the contents of the DVD advertising can be crucial in determining the quality of feedback and consistency of the advertising campaign.

The DVD advertising scorecard includes perspectives to derive the total performance of the marketing campaign. The indicators in DVD advertising are crucial in determining the performance of the perspectives in the scorecard. Using DVD advertising metrics is important to help advertisers determine and plan the contents and features for another DVD advertising campaign.

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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