How Can You Make Your Business the Best Home Based Business?

Everyone desires to take their businesses to such a level from where they can truly call it the best home based business.Reality check:
The market is flooded with competition
You might have limited resources
Your information and knowledge might be inadequate
You lack analytical skills
It takes a lot of guts
You’ve not really explored your decision-making abilities
You might want to apply some serious thoughts into all the above mentioned points.You will never get a ready made business plan which will work completely for you. With proper research and analysis, you will need to custom design a business plan which will prove to be your road map to success. You could also take personal advice from experts in various fields like finance, marketing, taxation, operations etc.Market research In order to make a home based business plan, you will need to clearly define your vision. Market research will help you to understand the future potentials of your business.You will need to spend a lot of time analyzing each and every factor related to your business. It could be concerning the product or service, financial aspects, competitors, marketing strategies and lots more.In order to understand the market demands, you will first need to understand the people and their cravings. You can start to do so by analyzing yourself first as a customer before you start thinking about yourself as a seller.Obviously, you cannot just stop at that. You will need to do research and make market surveys in order to understand the product or service demands. You could then try to meet the demands by arranging for adequate supplies.Your business will turn out to be the best home based business only if you are able to meet the demands with the quality solutions. Poor quality will surely initiate the downfall of your business.The best way to create a market position is to discover new ideas and apply a fresh approach to deliver your merchandise, be it a product or service.The word research may sound boring since it has been repeated again and again in most of the business related articles, but the very repetition also explains the importance of research and information.Business StrategyYou will need to design a business or process map after a lot of planning and analysis sessions. It will include all the factors like budgeting, operations, finance, promotion and marketing strategies, operations, quality, business development, risk assessment, information management etc.Your prime focus as a home based business entrepreneur should be to get traffic to your website. Obviously you might not have the capacity to create a product or service but that does not mean that you cannot use your creativity. This is where, you as a businessperson can make a big difference to the people.To create the best home based business you will need to be honest, empathetic, reliable, clear, professional and effective.

Best Online Home Based Business – Earn a Six Figure Income From Your Home

A home based business is always welcome provided it gets you the same amount of money that the 9-hour office job gives you. There are no regular increments, bonuses and payouts in these types of business. The jobs are easy and unless it requires extensive use of research facilities, they are all of the same type requiring hardly any specialized output. The best of these businesses are actually reaping in huge profits as of now. Some of the best online home based business are tutoring online, filling up surveys, doing ad inserts and typing, doing accounting work for some small companies, content writing and list building. The list is endless.Tutoring online is one great way of earning ready cash. There are various tutoring sites that require your expertise in various academic subjects. If you have the inclination just log in to these websites, submit your CV and wait for the approval. Some of them go for a short interview too, and once everything is through, you are on your own. The site would make students available for your purpose and you can teach these students online.The questions they ask would need to be answered by you with good examples and if you can increase your ratings in the site. The more your ratings are, the better the payments you receive. A large number of multinational companies who are willing to pay millions of dollars for their advertisement campaigns are now proposing online advertisements. All that you will have to do is just fill up the advertisement forms and submit them to the companies. You are paid for each advertisement that is accepted.Honestly, there is nothing as a best online home based business. If you like a specific line of business and you would want to see it grow, then go for it. That would be your best online home based business. Do not depend on what the websites say. If you can do it, then you would be earning more than what is generally mentioned.Anything that you do at home online is good for you so long as it gets you the cash. Busy corporate executives have left their high profile jobs to earn from home. This is the present day popularity of the concept. If you can get fully involved in this business, your money is guaranteed. Your involvement and commitment in the business is all that makes it the best online home based business.

Home Based Business Income

Home based business income opportunities are becoming more and more popular every day. This is mostly due to the popularity of Internet based business opportunities.These types of home based business opportunities are now easier and cheaper to set up than almost any other type of business, and the great thing is they are open to almost everyone and we all have an equal opportunity to be successful.They can be started and run on a shoestring, typical start up costs can be as low as $8-$10 and ongoing monthly running costs should be no more than about $20-$50.This makes it affordable to almost everyone especially when compared to starting a traditional business or setting up a franchise.Some of the best ways to build a home based business income is through Internet marketing; this is because it falls nicely within the above criteria on cost, ease of setup, and is easy and simple to run.One of the most lucrative areas to achieve a good home based business income is in niche marketing. Because there are millions of niche marketing opportunities available there is very little chance of this type of business ever becoming over saturated.Every day there are millions of searches on the Internet with people looking for knowledge and answers to solve problems that they have in their lives.Most of these people are looking for quick results and often do not have the time to do the research and find solutions to their problems and dilemmas.By working in highly targeted niche markets we can supply the products and services that they are looking for. And this in turn will give us our own home based business income.To understand niche marketing you just have to look at yourself and your family and friends. You will quickly see how everyone has subjects that they are passionate about, love talking about and love taking part in.This makes us all the experts in specialised subjects, and they can be anything from showing people how to improve their golf swing to teaching people how to import goods from a foreign country.And they can be as simple as helping people to cook easy and healthy meals to showing someone how to build and fly a real working model rocket.These are just a few of the ideas that can rapidly build you a home based business income, by looking at your own knowledge and experiences in life you can easily build your own targeted niche markets.A great way to improve your overall income is by building more than one niche market, and this can be done by splitting a broad niche markets into several highly specialised and laser targeted individual businesses.Another way to do this is by using several different areas of knowledge and building several niche markets on completely different subjects that you have knowledge of, or can gain knowledge of by doing some research.By searching online you will be able to find many different types of ready made business opportunities that are suited to building your own niche markets.These types of opportunities should cost you no more than the figures I have quoted earlier in this article, as an example my own business websites cost me less than two dollars per day to run.Most of these business opportunities will include absolutely everything you need to build your own business from scratch, even if you are a complete beginner with absolutely zero knowledge.Your own home based business income can often generate enough money to allow you to retire from your full time job, and work the hours that suit you from anywhere in the world with an Internet connection.

5 Essential Home Based Business Strategies For The Work At Home Business Owner

Let us all admit that whenever you work at home it does not take long for things to become chaotic. This is because having a company as well as a home lifestyle does not gel together. However, if it is always your wish to own your work at home business; here are five home based business strategies you can apply in order to get the success you are looking for.1. Organize Yourself and BusinessThe two main aspects your home based business must have are your work area, as well as your time. When there isn’t any method or organization in your company as well as your home living, it is possible for you to be completely stressed out 24 hours a day. You will not have a clear start or finishing time, plus your place of work will become a mess the whole day. Try to organize essential records in document folders, and put them in a filing cupboard. Additionally, when you are filing, cautiously carry out labeling for customers tax details, finances, building contractors, providers, and so on. Keep things to do list on your own desk throughout the day, and tick them as soon as the task is completed.Even when your customers know that you work at home; there needs to be fix working hours when you can be reached. One example is, if someone is generating an income on the internet they should remember to supply a get in touch with form so that people can contact them on a twenty-four seven (24/7) service, By doing this they will set up their online business boundaries so that they won’t be getting phone calls through the entire evening hours. An additional way to make sure that company message or calls remain inside the appropriate perimeters is to arrange an independent business telephone line that has an answering machine. This allows you to keep track of messages or calls that occur after working hours without you getting trapped in using the telephone 24 hours a day.2. Telephone AppointmentsTry to keep your appointments regardless of whether it is face-to-face or via the telephone. Collect all relevant details about your customer prior to making the phone call. You see, the consumers will know if you are rushing about for documents or someplace apart from your working environment. Choose a peaceful location for your business phone calls so that your calls are free from background disturbances such as children crying, and so on. In most cases your customers will have an understanding of when they hear your children talking (at the back) a couple of times, however, if this takes place frequently some customers may doubt your professionalism and trust.3. Develop a Professional PictureUse items such as letterheads, pamphlets, business cards, custom-made labelling, and so forth to create a professional picture of your work at home enterprise. Items that are printed using your company logo will enable consumers, and colleagues to realize that you are seriously interested in helping them. Should you have an internet site, make sure that you add the address of your website to your letterhead and envelopes. Use pamphlets to generate more income by publishing a diverse pamphlet for every service or product range offered. Remember e-mail advertising, and post cards to past clients. These things are not only inexpensive, but they are very effective if you want to send birthday celebrations, special deals, promotions, vacations, recommendations, and so forth to your customers.4. Send Out Express Thanks Cards to Customers Cards written by hand to say thank you continues to be valuable in developing devotion and confidence with consumers. These small express thanks cards can do a lot, but they must not be utilized to market your up coming deals. Just compose a basic note saying thanks for his or her business; write the envelope with your own writing (not typed), and post it two or three days following a purchase of your product. You will be amazed at just how much this simple action can boost your consumers trust in you.5. Maintain Accurate Documents Keep a documentation of everything that happens in the business; such as things that takes place from day-to-day, or once a week objectives, to company accounts due, and company accounts receivable information. Even if you are not hectic, you must maintain accurate documents every day to guarantee organization once your company increases. In case you have numerous employees, it is better to employ a pay-roll accountant to maintain personnel pay out, and income taxes. An accountant also can help with general business financial situation, and taxation all through the year as your home based business develops.Since you learn to generate money with a home based business, understand that working at home isn’t a lot diverse from other companies. With the right organization, and marketing your home based work at home business is likely to develop, and become successful.

Unsolicited Paper Advertisements Should Be Illegal For All But Small Businesses and Non-Profits

Don’t you get tired of seeing large businesses advertising on every medium? From billboards and radio to YouTube and television, large businesses (the businesses that make millions of dollars a year, even though by some accounts these businesses are still considered “small”) have the cash flow and subsequent budget required to fund these advertisements, which gives them a huge marketing advantage over small businesses. Since government officials are always so fond of saying small businesses are the drivers of job creation and growth in this country, it would follow that any advantage these businesses can muster would be helpful for America. As such, I believe legislation which would make it illegal for large businesses to send unsolicited paper advertisements to private residents would be beneficial for a multitude of reasons. Large business advertisements already flood the airwaves and reach millions of people, so here’s why I think paper advertisements from said businesses should never be allowed to reach my mailbox or driveway.The most obvious reason in favor of this approach would be the newfound marketing niche over which small businesses would enjoy a monopoly. Oftentimes, the budget of small/microbusinesses is so minuscule that business cards and flyers are the only way they can reach the consciousness of consumers. This being said, a second advantage of this approach becomes obvious. That is, if small business advertisements were the only game in town, or in this case, a citizen’s mailbox, they would garner more attention then they would when mixed in with dozens of other flyers and advertisements from larger businesses, the dilution effect of which would make the small business ad just another piece of paper in a sea of advertisements. Keeping this in mind, a third advantage of this approach would be correlated to the sheer volume of paper produced. Fewer paper advertisements would mean fewer trees destroyed and less waste, plain and simple! In addition, fewer paper advertisements would mean people like you and I would need to spend less time disposing of them. For example, many unsolicited paper advertisements I receive from large companies have my name and address emblazoned on the envelope and on documents inside, which for me means I have to shred them. All of this takes time, and since I never wanted these advertisements in the first place, I almost feel like I should be getting paid to receive them! After all, practically anywhere that you want to advertise in America requires you to pay for the use of that advertising space, so why should my mailbox be any different? However, as someone who cares about jobs for Americans, I would have no qualms about allowing small businesses to send me paper advertisements.The almighty dollar drives this country, and as such it is nigh impossible to avoid advertisements in America. However, I don’t want to receive advertisements at my home unless I say so, since I own my home, not the mega corporation. Look, I am not against capitalism, as capitalism fuels job creation and American competitiveness in the global economy. However, when my wife and I take a walk and see planes flying above us carrying streaming banners for huge insurance companies, it is not hard for us to see small businesses need to be given niches that the large businesses cannot access. If my wife and I can see this point of view, then in my opinion, astute legislators who care about America and its small businesses should not only see this point of view, but they should act on it. Disallowing paper advertisements from any for-profit business except a small business would be one such action.

The Power of Touch

Touch plays a very powerful part in the flirting game. If you get it right, a touch will advance your rapport with your date by leaps and bounds; time it wrongly and you’ve lost whatever chance you had. As you must touch eventually, it’s vital to get it right!

What you need to do is to learn exactly when you need to touch your date, and in what form that touch should take. You might decide to “accidentally” bump into the person in order to meet them; that a light brush of the upper arm is required, removing a cotton thread that may or may not be there; that taking your date’s hand, and lightly stroking it is appropriate; or, perhaps, that no action at all is needed for now, because your date is not used to being touched! Perhaps you might decide on some other form of touching.

You can usually tell by the body language of your date whether a touch would have the intended effect. If he/she is leaning in towards you, seems positively enthralled by your company, and is physically quite close to you, then chances are good that a touch would be welcome. At this time, any touching you do should be kept light, and you need to study the reaction. If you see your date suddenly tense up and start to look uncomfortable, you need to back off, slowly and gracefully, but without drawing undue attention to it. If your date seems to welcome the touch, then keep it going!

Touching in a dating context provides feedback for your date; by touching him/her, you are implying that you think the date is going well, and that you fancy him/her. For this reason, and perhaps partly as a test of the man’s confidence, the first touch is usually performed by the man. The woman will usually facilitate this when she is ready by positioning herself close to her date, but she probably won’t want to appear too keen. However, there is no rule that says the first touch should always be initiated by men! For example, a woman who is quite keen on a man may “accidentally” brush up against him on his way to the toilet!

Many people grew up in tactile families, and these enjoy being touched more; for these people, it is less important where the touch comes from. For them, a touch will have less power, simply because it is familiar; it is expected behaviour. Others grew up in non-tactile families, and these have to be comfortable with the person touching before they will even accept a touch. If you time it correctly and do not touch too soon, the touch performed on this type of person will have a much greater effect, simply because they are not used to it. Imagine sending a shiver down the spine of your date by touching him/her at the right moment!

If you’re a man on a typical dinner date, you would be well-advised to look out for this specific sign from the woman you’re with. These are situations where she is keen on you, and demonstrates this by laying one of her arms across the table, so that her hand is on “your” side of it. Her arm and hand then remain quite still. If this happens, you need to take action and touch her hand, if you want to advance the flirting game! Don’t think about it too much; just do it.

If you’re a woman on a typical dinner date, and don’t want to seem too eager, you’ll want to position one of your arms as I have outlined above. Along with good eye contact, a slight smile, and perhaps even a lick of your lips, these are excellent signs to send that you’re ready to crank the flirting up a notch!

How to Get Financing For Your Small Business

In today’s hostile economic environment, access to capital is the primary differentiating factor between those businesses which have been able to expand and gain market share versus those that have experienced enormous drops in revenue. The reason many small businesses have seen their sales and cash flow drop dramatically, many to the point of closing their doors, while many large U.S. corporations have managed to increase sales, open new retail operations, and grow earnings per share is that a small business almost always relies exclusively on traditional commercial bank financing, such as SBA loans and unsecured lines of credit, while large publicly traded corporations have access to the public markets, such as the stock market or bond market, for access to capital.

Prior to the onset of the financial crises of 2008 and the ensuing Great Recession, many of the largest U.S. commercial banks were engaging in an easy money policy and openly lending to small businesses, whose owners had good credit scores and some industry experience. Many of these business loans consisted of unsecured commercial lines of credit and installment loans that required no collateral. These loans were almost always exclusively backed by a personal guaranty from the business owner. This is why good personal credit was all that was required to virtually guarantee a business loan approval.

During this period, thousands of small business owners used these business loans and lines of credit to access the capital they needed to fund working capital needs that included payroll expenses, equipment purchases, maintenance, repairs, marketing, tax obligations, and expansion opportunities. Easy access to these capital resources allowed many small businesses to flourish and to manage cash flow needs as they arose. Yet, many business owners grew overly optimistic and many made aggressive growth forecasts and took on increasingly risky bets.

As a result, many ambitious business owners began to expand their business operations and borrowed heavily from small business loans and lines of credit, with the anticipation of being able to pay back these heavy debt loads through future growth and increased profits. As long as banks maintained this ‘easy money’ policy, asset values continued to rise, consumers continued to spend, and business owners continued to expand through the use of increased leverage. But, eventually, this party, would come to an abrupt ending.

When the financial crisis of 2008 began with the sudden collapse of Lehman Brothers, one of the oldest and most renowned banking institutions on Wall Street, a financial panic and contagion spread throughout the credit markets. The ensuing freeze of the credit markets caused the gears of the U.S. financial system to come to a grinding halt. Banks stopped lending overnight and the sudden lack of easy money which had caused asset values, especially home prices, to increase in recent years, now cause those very same asset values to plummet. As asset values imploded, commercial bank balance sheets deteriorated and stock prices collapsed. The days of easy money had ended. The party was officially over.

In the aftermath of the financial crisis, the Great Recession that followed created a vacuum in the capital markets. The very same commercial banks that had freely and easily lent money to small businesses and small business owners, now suffered from a lack of capital on their balance sheets – one that threatened their very own existence. Almost overnight, many commercial banks closed off further access to business lines of credit and called due the outstanding balances on business loans. Small businesses, which relied on the working capital from these business lines of credit, could no longer meet their cash flow needs and debt obligations. Unable to cope with a sudden and dramatic drop in sales and revenue, many small businesses failed.

Since many of these same small businesses were responsible for having created millions of jobs, every time one of these enterprises failed the unemployment rate increased. As the financial crisis deepened, commercial banks went into a tailspin that eventually threatened the collapse of the entire financial system. Although Congress and Federal Reserve Bank led a tax payer funded bailout of the entire banking system, the damage had been done. Hundreds of billions of dollars were injected into the banking system to prop up the balance sheets of what were effectively defunct institutions. Yet, during this process, no provision was ever made that required these banks to loan money out to consumers or private businesses.

Instead of using a portion of these taxpayer funds to support small businesses and avert unnecessary business failures and increased unemployment, commercial banks chose to continue to deny access to capital to thousands of small businesses and small business owners. Even after receiving a historic taxpayer funded bailout, the commercial banks embraced an ‘every man for himself’ attitude and continue to cut off access to business lines of credit and commercial loans, regardless of the credit history or timely payments on such lines and loans. Small business bankruptcies skyrocketed and high unemployment persisted.

During this same period, when small businesses were being choked into non-existence, as a result of the lack of capital which was created by commercial banks, large publicly-traded corporations managed to survive and even grow their businesses. They were mainly able to do so by issuing debt, through the bond markets, or raising equity, by issuing shares through the equity markets. While large public companies were raising hundreds of millions of dollars in fresh capital, thousands of small businesses were being put under by banks that closed off existing commercial lines of credit and refused to issue new small business loans.

Even now, in mid 2012, more than four years since the onset of the financial crisis, the vast majority of small businesses have no means of access to capital. Commercial banks continue to refuse to lend on an unsecured basis to almost all small businesses. To even have a minute chance of being approved for a small business loan or business line of credit, a small business must possess tangible collateral that a bank could easily sell for an amount equal to the value of the business loan or line of credit. Any small business without collateral has virtually no chance at attaining a loan approval, even through the SBA, without significant collateral such as equipment or inventory.

When a small business cannot demonstrate collateral to provide security for the small business loan, the commercial bank will ask for the small business owner to secure the loan with his or her own personal assets or equity, such as equity in a house or cash in a checking, savings, or retirement account, such as a 401k or IRA. This latter situation places the personal assets of the owner at risk in the event of a small business failure. Additionally, virtually all small business loans will require the business owner to have excellent personal credit and FICO scores, as well as require a personal guaranty. Finally, multiple years of financial statements, including tax returns for the business, demonstrated sustained profitability will be required in just about every small business loan application.

A failure or lack of ability to provide any of these stringent requirements will often result in an immediate denial in the application for almost all small business loans or commercial lines of credit. In many instances, denials for business loans are being issued to applicants which have provided each of these requirements. Therefore, being able to qualify with good personal credit, collateral, and strong financial statements and tax returns still does not guarantee approval of a business loan request in the post financial crisis economic climate. Access to capital for small businesses and small business owners is more difficult than ever.

As a result of this persistent capital vacuum, small businesses and small business owners have begun to seek out alternative sources of business capital and business loans. Many small business owners seeking cash flow for existing business operations or funds to finance expansion have discovered alternative business financing through the use of merchant credit card cash advance loans and small business installment loans offered by private investors. These merchant cash advance loans offer significant advantages to small businesses and small business owners when compared to traditional commercial bank loans.

Merchant cash advance loans, sometimes referred to as factoring loans, are based on the amount of average credit card volume a merchant or retail outlet, processes over a three to six month period. Any merchant or retail operator that accepts credit cards as payment from customers, including Visa, MasterCard, American Express, or Discover, is virtually guaranteed an approval for a merchant credit card advance. The total amount of cash advance that a merchant qualifies for is determined by this three to six month average and the funds are generally deposited in the business checking account of the small business within a seven to ten day period from the time of approval.

A set repayment amount is fixed and the repayment of the cash advance plus interest is predetermined at the time the advance is approved by the lender. For instance, if a merchant or retailer processes approximately $1,000 per day in credit cards from its customers, the monthly average of total credit cards processed equals $30,000. If the merchant qualifies for $30,000 for a cash advance and the factoring rate is 1.20, the total that would need to be repaid is $30,000 – plus 20% of $30,000 which equals $6,000 – for a total repayment amount of $36,000. Therefore, the merchant would receive a lump sum of $30,000 cash, deposited in the business checking account, and a total of $36,000 would need to be repaid.

The repayment is made by automatically deducting a pre-determined amount of each of the merchant’s daily future credit card sales – usually at a rate of 20% of total daily credit cards processed. Thus, the merchant does not have to write checks or send payments. The fixed percent is simply deducted from future credit sales until the total sum due of $36,000 is paid off. The advantage to this type of financing versus a commercial bank loan is that a merchant cash advance is not reported on the personal credit report of the business owner. This effectively separates the personal financial affairs of the small business owner from the financial affairs of the small business entity.

A second advantage to a merchant credit card cash advance is that an approval does not require a personal guaranty from the business owner. If the business is unable to repay the merchant cash advance loan in full, the business owner is not held personally responsible and cannot be forced to post personal collateral as security for the merchant advance. The owner removes the financial consequences that often accompany a commercial bank business loan that requires a personal guaranty and often forces business owners into personal bankruptcy in the even that their business venture fails and cannot repay the outstanding loan balance.

A third, and distinct advantage, is that a merchant credit card cash advance loan does not require any collateral as additional security for the loan. The future credit card receivables are the security for the cash advance repayment, thus no additional collateral requirements exist. Since the majority of small businesses do not have physical equipment or inventory that can be posted as collateral for a traditional bank loan, this type of financing is a phenomenal alternative for thousands of retail businesses, merchants, sole proprietorships, and online stores seeking access to capital. Such businesses would be denied automatically for a traditional business loan simply because of the lack of collateral to serve as added security for the bank or lender.

Finally, a merchant credit card advance loan approval does not depend upon the strong or perfect personal credit of the business owner. In fact, the business owner’s personal credit can be quite poor and have a low FICO score, and this will not disqualify the business from being approved for the cash advance. The business owner’s personal credit is usually checked only for the purpose of helping to determine that factoring rate at which the total loan repayment will be made. However, even a business owner with a recently discharged personal bankruptcy can qualify for a merchant credit card cash advance loan.

Since the cash funds being lent on merchant credit card advances is provided by a network of private investors, these lenders are not regulated or affected by the new capital requirements that have placed a constraint on the commercial banking industry. The merchant cash advance approvals are determined by internal underwriting guidelines developed by the private lenders in the network. Each loan application is reviewed and processed on a case-by-case basis and approvals are issued within 24 to 48 hours from receipt of a complete application, including the previous three to six months of merchant credit statements.

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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