These 4 Benefits Should Encourage You to Start a Home-Based Business

Are you thinking of starting your own home-based business? If so, then you are not alone. Research shows that around the world, more and more people are opting to start and operate their own home-based businesses. This is largely the result of the current gloomy world-wide economic outlook.In case you are hesitating about starting a home-based business, the factors below should encourage you to take that necessary step.First, it is quite easy these days to start and run a home business. If you have a home computer with internet connection, then you can operate an online business from home. You do not have the overheads of the traditional business.From your home you can, via the internet, have access to a global market of several million prospects for your business. If you choose carefully, you can run a highly lucrative online business, as your market can be so vast.Secondly, you can achieve a lot of personal freedom if you are able to run a successful full-time home business. You do not have any boss standing over you and ordering you around. If you do not like your boss, then that fact alone should give you additional incentive to look for ways of quitting and becoming your own boss.Think about it. Running a successful home business can bring you the freedom to wake up as late as like, work when you like, and go on vacation whenever you want. There is no boss to tell you that you cannot do this or that.Third, you can eventually end up earning a lot more money, from running your own home business, than by staying in your current job. It is often said that nobody gets seriously rich by working for somebody else. That is largely true. Unless you are a top executive of a huge multinational company, you are unlikely to get paid the really big bucks.Fourthly, operating a successful home business can afford you a better, more rewarding opportunity to grow closer to your family and friends. You can have more time on your hands, so you can more easily make time for your family and friends. There are some highly-paid executives who work for very long hours and, therefore, are unable to spend adequate time with their partners and families. What is the point of having plenty of money if you don’t have the time to enjoy it personally and with your family and friends?Where there is a will, there is a way. If you are determined to run a home business and become your own boss, you will eventually succeed if you put in the necessary effort. It will take time to succeed in your own home business, but you can make it.Remember that many other people are currently enjoying the rewards of running full-time home businesses. You can do the same if you put your mind to it. Look for a good home-business opportunity and start putting in the hard work. This time next year, you might be much richer than you currently are. More grease to your elbows!

How to Drive Targeted Traffic to Your Home Based Business

Starting and running a home based business is getting more and more popular these days with the continuing growth and development of the online market and the internet in general. Furthermore, this shouldn’t come as a surprise considering the fact that home based businesses have a lot of benefits that other types of businesses don’t have. First, it is much cheaper to start, build and maintain. Second, you have potential for unlimited growth. And third, you are your own boss so have absolute control over the business.The success of a home based business depends on a lot of things. One of the most important of these is traffic, targeted traffic that is. As with any kind of online entity, the more traffic your business gets, the more ground it can cover towards success. With that said, you have to devote a large portion of your time driving traffic to your business website.If you are a beginner when it comes to traffic-building, here are the most basic ways on how to do it:
Search engine optimization. If you want to become a really effective internet marketer, you have to learn SEO. Ask anyone who had any experience in online marketing and he or she will readily tell you that search engine traffic is the best and the most targeted type of traffic out there. The best thing about search traffic is that it is free. You don’t have to spend a fortune to get them to your site. SEO is not that difficult to learn either. It’s just a matter of creating content that revolves around important search keywords and tweaking the design of your site so that it will be a lot easier for search engine spiders to crawl.
Take advantage of social media sites like Facebook, LinkedIn, Twitter, YouTube, StumbleUpon, etc. A content of yours that gets popular in any of these sites can instantly bring thousands of good traffic to your home based business website.
Submit content to online article directories. All you have to do is write articles with topics related to your business then submit them to directories. This not only drives traffic, it also passes link juice as well.
Make use of the tools and resources online that can help you build and develop your business towards success. One example of these resources is MLSP/MyLeadSystemPro. This resource helps you build successful and profitable home businesses.
If you take note of all of the above tips and actually put them into action, your home based business will be receiving a ton of targeted traffic in no time.

Home Based Business Coaching – Seven Steps to Finding an Internet Home Based Coaching Club

Joining a coaching club may be the one of the most important things you can do for success in your Internet home based business. The Internet is changing at a pace faster than you think. Do you, as a on line home based business owner, belong to an Internet business coaching club? It is imperative that you have one place you can go for advice, inspiration, leadership, networking, team building and training. Even coaches belong to coaching clubs. This one step may take your on line home business to the next level.There are seven steps to finding an exceptional Internet home based business coaching club:* The leader or coach in the club has to be extremely familiar with Internet home based businesses* The coach must be successful both in relationships at home and with his business.* Make sure the coach of the club is well respected by his peers.* You must also resonate with and trust the leader or coach of the club.* The content taught in the club must pertain to and benefit your type business or you must be able to apply the techniques to your particular niche.* You must have an option to join this club on a monthly or quarterly basis and it would benefit you to have the option of being an affiliate to the club.* The coaching club should maintain quarterly meetings to establish networking and more detailed training pertinent to your Internet home business including some type of team building activity.The coach of the club must have experience and knowledge in the on line home based business arena. Coaches must provide or teach quality Internet business techniques. Exceptional coaches share their heart to heart failures and successes, offer lifestyle changing techniques and they love what they do. They are on fire and work hard to teach you how to be productive.The person who calls himself the leader in a coaching club must have very good relationships with significant others and with business relationships. If he cannot run his own household or business he will offer little to a club. Most exceptional coaches include their family and friends in their businesses and their clubs. An excellent leader has nothing to hide and will have team building activities which include family, friends and employees. A true coach treats everyone with respect, and that includes himself.Most extremely good coaches hire their own peers to add content, interest, training and provide value and enrich their club. It is impossible for one person to know everything about everything on the Internet. It is easy to find out on the Internet the quality of a coaching club or the leader. Bad words spread like wildfire on the Internet. Just Google their name or the name of their club. Make sure the coach of the club is in for the long term commitment. Check for testimonials and follow your instincts.If you do not like the coach then do not join the club. There is no sense joining the club if all you want to do is argue or demean the leader. The leader must be in alignment with your beliefs and values or your wasting your time and money. Coaching clubs are meant to be educational, personal and all about building quality relationships. Personalities do clash so make sure you respect and honor the coach of your choice.It is important to make sure that the content or value presented is beneficial to your type of business. Some clubs are generic and benefit many types of businesses. Quality Internet business coaching clubs could include such things as content creation, direct response, keyword discovery, list building, optimization, phone skills, setting up your funnel, social media training, web domination and other traffic strategies. New content should be added regularly. Do not waste money on a name only. Make sure the personally branded coach provides content, enjoyment, networking, team building and web type seminars to help “keep you in the loop”.Do not join a coaching club membership that you cannot cancel if you find it does not offer value and is not pertinent to your type of business. Many clubs offer a time trial period for your benefit and enjoyment before you join. Some offer affiliate programs that may help with your business and coaching expenses. Do not sign a contract. Just be sure that the club membership can be canceled at any time.Lastly, a coaching club should offer quarterly meetings with significant amount of networking, personal development and team building to help sustain and grow your business. If your present club is not providing quarterly meetings and networking, then find some other club that can help you make your business succeed. Also, make sure you attend the live events. Live team building coaching events build friendships, change your mindset, create new ideas and give you a chance to take a break away from home.The Internet changes directives on a weekly basis just like “Corporate America”. Google slaps and denies consistently for no reason. New on line programs are created frequently. Some training sites change or become obsolete. Again, make sure you resonate with a well liked and respected coach. Join a coaching club rich in content for your personal development, marketing, networking, and training. Be sure to attend the meetings and team events on a regular basis to increase your knowledge and potential. Try a club that has an affiliate program to help with expenses. Joining the right on line business coaching club is an investment in an education that can increase the success of your Internet home based business.

Best Home Based Business Ideas Revealed

Are you planning to quit your day job and start your own business? Before you do so, make sure that you have a concrete plan on how to start your business. There are many benefits from starting a home based business. The best home based business ideas would be those that would put your skills into use. To give you an idea of what type of home based business ideas you might find interesting, here is a list of the most popular home based businesses proven to be effective money making strategies.Be a Franchise:Franchising is a great way to start a home based business. Unlike the common notion about franchising being limited to food and clothing, franchise opportunities also exist for home offices like household services, product sales, and travel services. You can focus and monitor your business from your computer. It is a powerful way to run a business and that is why franchising is considered one of the best home based business ideas.Be a Mentor or Consultant:If you have the skills and knowledge, you better make the most out of it by sharing it with others. You can be a mentor wherein you get to share what you are good at, and at the same time, earn money from it! The market for this business is wide-open. With the fast learning pace today, a lot of people are looking for mentors to help them step up to the plate. Aside from that, personalized mentoring is preferred in the home business world.Sell Your Own Product:Another one of the best home based business ideas is marketing your own products. It is a good way to start your own business. Those uncomfortable with going right in to internet marketing can start offline. By selling personalized handy-crafts or home-made pastries to friends and colleagues, your friends can help you out on marketing your products and you can learn the principles of a warm market. It is a little easier for some people to start their business offline.Write Articles Online:If writing is your passion, you can try writing for clients online. Actually, a lot of freelancers are engaged in online article writing and have proven how promising this business can be. Search for sites that hire writers and be an independent contractor and write website content for other people. Content writers are in high demand.Individuals succeeding in their businesses, are succeeding because they are putting their hearts in to what they do. Whichever of these topics is the best home based business idea for you, you must always consider what you love doing. Do not pursue one thing just because others have succeeded. Make your own fortune by following what your heart tells you to. Individuals who succeed, do so because they believe in and enjoy what they do.

Small Business Valuation and Its Benefits

If you watch the TV show Shark Tank, you often see business owners who lack an understanding about small business valuation. It is estimated that over 80% of small businesses have no financial estimate as to what their business is worth, nor do business owners seem to care. This is like me asking you how much money you have in the bank and you have no idea what I am asking you. You would not run your personal financial life this way; so why would you run your business with no understanding of the value.So why should small business owners care about valuation? The answer is simple: The personal wealth of every small business owner is directly linked to the valuation of their business. If you expect to be worth a million dollars, then you better have a business that has a valuation of one million dollars. This is important because at some point every small business owner must retire and your retirement is based on the value of your business. Consider the fact that 70% of private companies in the United States will be put up for sale by 2030 and according to the National Federation of Independent Business, only 30% of all businesses that are put up for sale are sold. This is because most small business owners never pay attention to the valuation of their businesses.Where does valuation come from? Valuation gets assigned based on the benefit stream of your business. The most common benefit stream is Earnings Before Interest Taxes Depreciation and Amortization or EBITDA for short. When you go to sell your company and retire from your business, you will sell your company for a multiple of your EBITDA. The bigger the company, the higher the multiple and the higher the valuation. The key is to get the multiple up which will increase your valuation. This requires an aggressive growth strategy linked to the valuation of your business.The good news is that financial professionals are now offering cloud based solutions that empower any small business owner with a road-map for increasing value. The bad news is that this road-map can take five years or more to implement. Additionally, most road-maps require a strong professional team to facilitate the process. Having worked with various solutions, I would recommend small business owners consider one of two solutions:1. Value Opportunity Profile – This is a comprehensive assessment of your business based on interviews with your management team. Specific recommendations are made on how to increase value in three phases.2. Value Builder System – This is a 12 month program that starts with your own self-assessment, allowing you to decide if you want to embark on the program or not. Exercises are used each month to improve the valuation score of your business.Regardless of how you get there, it is imperative for every small business owner to recognize how important valuation is to their own personal wealth. Because so few owners seem to grasp valuation and how to increase it, having a professional outside team can help. You need someone to orchestrate and facilitate the process while everyone else runs the day-to-day operations of the business.

Is America Ready For A Tiny BMW?

I wrote previously about Mercedes’ foray into the small car market. As strange as that may seem to many Americans, both Mercedes and BMW have long produced smaller and less costly models for the European market. Now, it appears that BMW is considering doing the same: introducing to the North American market a truly compact car, smaller than any BMW that has ever graced our highways and back streets. Is this a good move for the German automaker? Or, will it water down a prestigious brand name?

Part of any automaker’s marketing strategy is to convince you, the consumer, what their vehicle line is all about. Dodge would like you to believe that they sell sporty cars and rugged trucks; Scion touts their youth oriented vehicles; and both BMW and Mercedes, like Cadillac, sell luxury vehicles. Millions of dollars of advertising is spent per year to reinforce brand image which is supported by consumer surveys of that particular sentiment.

Speaking about Cadillac, in the early 1980s GM’s luxury brand briefly marketed a compact car – the Cimarron – that ultimately bombed, in part, because it strayed far from its big luxury car base. Sure, the car was little more than a rebadged and re-tweaked Chevrolet Cavalier, but it contradicted the entire Cadillac mystique. Even a slightly larger and much later model, the Catera, also failed as the car was perceived for what it really was: a remade Opel.

So, now the dilemma: will consumers accept the “1 Series” BMW’s planned entry or will it cause confusion and diminish the BMW name? As a backgrounder, the current 1 Series is expected to be overhauled in 2006. Right now the car is offered as a sport hatchback, but the hatchback isn’t likely to be imported due to America’s aversion to that particular body style. Thus a sedan version is being considered by BMW for production according to published reports.

I visited BMW’s U.K. site to examine the current Series 1 model. With the typical BMW fascia in place the Series 1 resembles a slightly stretched Volkswagen Golf mated to a compact BMW. The “1″ comes equipped with either a 1.6L or 2.0L I4 gasoline engine, a gas 24V 3.0L V6, or a 2.0L four cylinder diesel that achieves a whopping 50 mpg fuel economy. Prices for the “1″ start at just under $25,000

Equipment on the “1″ is typical BMW with ABS and all the full luxury appointments. Clearly, the current “1″ is not a stripped model as it features many of the amenities found on larger BMWs.

In my opinion BMW must tread carefully in bringing a car of this size to the American market. Forget the hatchback and just go with the sedan with either a wagon and or a coupe being a possibility. Unlike the basic Mercedes models, the “1″ may just be able to pull it off for BMW and allow the German automaker to sell a tiny BMW successfully in the U.S. Alternatively, BMW just may want to consider launching a separate brand, to retain the BMW mystique in the American market.

3 Sources Where Your Small Business Can Get A Loan Today – Yes, Even Your Small Business

Now, when we talk about small business loans, we mean just that – small business loans. We are not talking about a $1 million loan to purchase some commercial real estate or $500,000 to buy some investment property. We are not talking about a $3 million credit line just to show capital on a balance sheet. And, we are not talking about a $250,000 equipment loan for a regional construction company.

We are talking about true small business credit – loans under $150,000. Capital amounts that the 22 million small businesses in this country could use at some point in time for working capital, to renovate their location, purchase inventory, marketing, meeting payroll, developing new products or to simply have the capital on hand to acquire and satisfy customers (what business is really about).

But, we have heard ad nauseam that banks are just not lending to small businesses – claiming there is too much risk in smaller firms. So, many small companies are not even applying for credit anymore out of fear of being turned down. And, as a result, we are seeing small businesses not reach for or obtaining their full potential – essentially letting profitable opportunities slip by.

However, just because banks don’t see the true value of small companies, that does not mean that others don’t – others who are willing to do what they can to fund your business.

The Benefits Of Small Business

There are some 22 million small businesses in the U.S. and they are quite the power house.

According to the Small Business and Entrepreneurship Council, small businesses;

Provide two-thirds of all new jobs in the nation.
Contribute almost 50% to our Gross Domestic Product.
Account for 97.8% of all exports. And,
Create 16.5% more innovation than larger firms.
All items that help make America the country that it is.

But, if banks think these firms are too risky, that is OK, because given the entrepreneurial spirit in this country, other financing firms (lenders) are stepping up to cover the small business loans that banks and traditional lenders will not. So now, you don’t have to be afraid of being turned down anymore.

3 Sources That Will Fund Your Small Business

1) SBA Loans: Sure, SBA loans have to go through banks – which are not lending. However, banks might not be lending for their own loan portfolios but they are lending under the SBA’s programs.

Did you know that over the last three years, the SBA has been growing the number and dollar amount of the under $150,000 loans they back – even given that banks (who originate these products) are not approving them?

From the latest SBA data;

In 2012, the SBA guaranteed 14,520 under $150,000 loans for a total loan amount of over $802 million. In 2014 (two years later), the SBA increase the number of these loans to 16,043 with a total volume of $955 million – with a down year in 2013.

Part of this increase is the fact that the SBA has reduced or waived its fees on these smaller loans. From the SBA’s website:

“The SBA determined to eliminate the fees on loans of $150,000 or less after conducting a review of the 7(a) Loan Program. As a result, a small business owner obtaining a $150,000 loan will save more than $2,500.”
Bottom line – the SBA is actually doing what it can to fund small businesses in this country – including yours.

Programs to look for:

The 7(a) program offers nearly any business loan under the sun from working capital to commercial real estate.

The CDC/504 program only focuses on real estate and equipment lending. But, if your business needs either one of these under the $150,000 amount – including renovating your location – then by all means as this is a great program.

And, the express program – which is capped at $350,000 – is a great program. Quick and easy access to needed capital.

Now, for some quick benefits of SBA loans. The SBA’s guarantee does several things:

By capping interest rates and fees, these products tend to be cheaper in the long-run for the borrower.

Lower down payment requirements – meaning that you can keep more of your own money in your own business.

Long loan terms also allow payments on these facilities to be more affordable. Just image which loan payment would be easier to make on a $100,000 loan at 10% interest. A bank may require the loan to be repaid in 36 months – making the monthly payment $3,227. While the SBA could extend the term to 6 years (72 months) making their monthly payment $1,853. The lower the payment amount, the easier it is to cover with current cash flow, making the overall loan less risky and easier to get approved.

Express programs can significantly speed up funding as some traditional business loans can take months to close while those under the express programs can be funded in the matter of weeks.
If you have been fearful of applying for a SBA loan, knock it off and go apply!

2) Alternative Lending: Alternative loans (non-bank loans) from factoring and business cash advances to revenue based loans have really picked up steam over the last 5 plus years.

These lenders are focused solely on small businesses and as such have created products that allow them to approve more loans to companies that traditional lenders will not touch – by not using old and outdated underwriting standards but by focusing more on technology.

Most alternative lenders – especially the leaders in this space – have seen their loan volumes (thus their approval rates) – increase by 150% or more year after year.

A couple of examples: According to the SBA, their largest lender – Wells Fargo – approved and funded just over $266 million in small business financing last year. However, OnDeck Capital, a leading revenue based lender, nearly doubled that amount over the same period. Further, CAN Capital claims to have funded over $800 million in 2013 – far out pacing even the top 100 SBA lenders combined.

While these loans are high-cost loans, they offer several benefits like approvals when other lenders say “no” as well as quick (in the matter of days) funding.

3) New Players: Peer-to-peer lending is know for its ability to match regular people who have extra money to lend with regular people who need to borrow. These loans are typically personal loans that can be used for nearly any purpose – like starting or growing a small business.

However, just this year, Lending Club – the leader in P2P lending – has begun to offer a true small business loan product where businesses can borrower anywhere from $15,000 to $100,000 at low rates. And, their approval and funding is not based on some standard cookie cutter formula that most businesses just do not meet but comes from regular people who listen to your story and decide for themselves the merit of your financing request.

Conclusion

Capital for your business is still available.

Don’t always believe what you hear. Sure, small business lending is tight – when compared to the hey days of the mid-2000s. But, that does not mean that you still cannot get the funding your small business needs to start, grow and succeed.

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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