Are you enjoying or enduring your online home based business marketing? Home business has been made easy with the use of the internet but for some internet marketers, it has become a personal bondage instead of personal freedom. They are not enjoying one of the main reasons they quit their corporate jobs. And the root cause is simply lack of self discipline.Personal Bondage, though can happen to any online marketer at any level of success, occurs mostly with newbies (new users on the Internet). Everything seems difficult and overwhelming to the person: marketing strategies, generation of leads and traffic, etc. The person has to learn so much and start so many things at the same time. No time any more for you, family or friends. It is work, work and work!Another thing that can cause personal bondage is unhealthy competition. Competition is very good but when it becomes a do or die affair, then it becomes dangerous. It will engulf all your mind and time; affect your relationships and perspective to life.Personal freedom, one of the benefits of home-based business is achievable and can be maintained. I have listed below 4 steps to achieve this.4 steps to enjoy and maintain personal freedom1. Choose the right home business suitable for you.Your choice of business will affect the level of freedom you will enjoy. It should not be the type that will demand more than you can give. As I stated in my article- How To Choose A Home-Based Business Today, you need to consider how much time you can put into the business before concluding on it.2. Have a business schedule and stick to itRome was not built in one day, so allow your online business marketing to gradually grow. Have a daily action plan and implement it but stick to your schedule. What cannot be completed today will be completed tomorrow. Though sometimes you may need to work overtime, it should not become a habit.3. Update your knowledge base.There is a lot of information on how to market easily and faster online. Search out how others are able to achieve a lot in shorter periods and implement them. A word of caution though- only implement ideas that can be done within your budget and are adaptable to your online home based business. Also, do not be deceived by ‘how to get rich quick’ promotions. Every successful business requires diligence and time.4. Self disciplineYou need to discipline you especially in areas of time management and self development. Many people know what is right but lack the self discipline to carry it out. Discipline your emotions: fear, anger, pride, etc. Do not get into unreasonable competitions. There will always be somebody before and after you in the hierarchy of success.You are meant to enjoy personal freedom from your online home based business marketing not to endure personal bondage. It is your responsibility to take steps to achieve this freedom. So get started and see you at the top.
Home Based Business Opportunities for Women – Exciting New Future For Women
It really was not that long ago that the few home based business opportunities available to women came from cosmetic companies, and some did very well indeed, at least from a financial standpoint. But in today’s increasingly wired world, opportunities for women have vastly expanded into other areas normally considered male dominated.Home based business opportunities for women are open to women in any financial situation, since the initial monetary outlays can be minimal, especially if you happen to choose internet based businesses. Some basic computer knowledge can greatly help, but you can always learn on the go since you have the luxury of setting your own personal schedule.Home based business opportunities for women is “the wave of the future” for women. Women have the opportunity to have the freedom they could not have had years ago. By working at home earning an income on the internet, women no longer have to be forced into making decisions about staying at home to raise a family or the need to go out to work. It is an ideal situation for a mother that’s a single parent. A home based business offers the older woman an unlimited opportunity to generate an additional income. With today’s economy creating stress on so many, people particularly the older woman, the amount of money that can be generated using a computer is phenomenal.First, there are the notably obvious benefits stemming from home based businesses for women, such as being able to eliminate the stress from commuting, transportation costs going to and from work, child care costs if applicable, not to mention the tremendous exhilaration of being your own boss. Little discussed but very real still is the potential of developing a built in organizational structure within your own family. Common goals tend to pull families together, with individual members contributing their own set of functional skills.There are thousands of home based business opportunities for women available on the internet and it would be wise to learn how to discern the scams from the legitimate offers that may be suitable for you. Limit your financial risks by starting small, then expand, and always ask yourself WHY? Reviews are a solid source of information, just keep in mind that not all reviews are subjective, with some being thinly disguised ads for competing products or designed to promote the reviewer’s own products.So get on your computer and do your own research- checkout the home based business opportunities for women with a critical eye. and see for yourself the vast number of business opportunities that exist today for women.
Your Passion Can Turn Into the Best Home Based Business! Think About It
Which is the best home based business? A good question! Well, the answer is: something that you’re passionate about can turn out to be the best business for you. If you’re a computer buff, a business related to computer work might prove to be lucrative for you. If you love jewelry designing, why not convert it into a business? You might become rich by selling your designs!
Here are some examples of the best home based business opportunities. They are popular as well as legitimate.Child CareIf you love kids, then you can surround yourself with them and make money too. You can start by babysitting your neighbor’s kids. Posting flyers in high traffic regions works best in getting people to know about your babysitting services.Baking BusinessYou can make a variety of scrumptious cakes and other bakery products. Then why are you still baking just for you and your family? Bake for the world and make money! This is the best home based business for people gifted with culinary skills. Start by baking for your neighbors. Once they like your products, they are certainly going to spread news about your fabulous baking by word-of-mouth. Sooner or later, you’ll find your bakery products reaching top restaurants and bakeries!Trading AntiquesIf you’ve lots of useless items lying around your home or garage, then you can convert them into the best home based business for you. There are many auction sites where you can place your items and get a fair price for them. Gather information about the zoning laws in your area, stock the items that you intend to sell in a space at your home, and get started.Computer WorkUse your computer expertise to churn money. You can start rendering computer services such as accounting, desktop publishing, encoding payroll records; even web designing. There are hordes of companies looking for computer experts who can help them in various activities for their business.Interior Design Or Clothes/Jewelry DesignThose having a knack for designing things can display their talent on the internet and earn bucks. Don’t hide your beautiful masterpieces at home. Sell them!GardeningYou’ve a beautiful garden at your backyard that’s dotted with many ornamental plants. Have you ever thought of selling these plants to your local flower shops and earning money? It’s the best home based business for people who are passionate about plants and flowers and have the skill to grow them. Flowers are always in demand. With Valentine’s Day, Mother’s Day, Father’s Day, Rose Day, and so many other “days” to celebrate, your business is surely going to bloom!Do you have any other creative idea that can sell? Turn it into the best home based business and let people watch you flourish with awe!
Network Marketing: The Top Home Based Business Structure Of The 21st Century
It isn’t exactly a secret; home based businesses have been growing in popularity by leaps and bounds, due to the various advantages they offer over working traditional jobs in an uncertain market. Network marketing in particular has stood out among many of the new home based business opportunities, because of the many options it allows people seeking to build a successful business. Here are three of the major advantages the business model brings:• Better Use of Time – Because of the distributed nature of network marketing infrastructure, no matter what your particular skill set is, you can plug into the system wherever your talents lie and make a more efficient use of your time. When you consider other home based business opportunities, this economy of invested time leads to big comparative profits. You’ll be able to work less and earn more.• Self-Promoting – Another major advantage of network marketing over other home based business models is that it is self-promoting. In this business model, no one profits unless everyone profits; skilled organizers and administrators need skills salespeople to build relationships and vice versa. This is the only model of business organization that allows you to spend your time on the areas of your business where you will see the best return.• Synergy With the Internet – The internet is truly the new major frontier in terms of business, and it is not surprising that network marketing models have taken this fact into account. In fact, they are superior to traditional home based business models in nearly every way when you consider the impact of the Internet and technology on commerce models.As you can see, when it comes to potential home based business models, network marketing has a lot to offer. It gives you a degree of flexibility which simply isn’t present in traditional business models. It allows you to make a more efficient use of your own personal time and talents, and it also is able to take advantage of current technological trends (think social media) to promote itself and take advantage of the internet.Network marketing really has the potential to be an excellent home based business opportunity, particularly when the organization is built around a very strong product. In fact, finding a product that you enjoy or that makes a difference in your life, and then choosing to support it can be an excellent way to break into the industry in the first place.
Small Business Project Management: Six Pros and Cons
Growth hungry small businesses today in the UK and indeed throughout the world face the challenge of balancing two competing objectives. Firstly, businesses must maintain and standardise current business processes in order to give your business the chance to get really good at what it does through experience curve effects. Greater business efficiency normally translates into a better customer experience and higher profits. Secondly, businesses must transform business operations in order to survive and compete in the future. How well we are able to achieve the right balance for our business will ultimately determine if we survive and go on to thrive or go the way of so many small businesses into market irrelevancy and insolvency.You may well be thinking right now what has this got to do with project management? To understand that we first need to understand the fundamental differences between projects and day to day business operations. Whilst many of the skills required to manage your “business as usual” activities are the same as those needed to manage projects, there are some crucial differences. Amongst the most significant differences are that project work tends to be at least cross functional and often cross organisational and every project will be unique in some way rather than following the predictable pattern of business as usual. These characteristics of projects introduce opportunities and risks over and above those encountered in business as usual. In short, projects are riskier than day to day business, and therefore need a different management approach.Projects are the means by which we introduce change in organisations. All businesses that are making any attempt to adapt to face future challenges have projects. Common examples of projects in small businesses may include setting up a company website, establishing the office in a new location, or implementing a new product but it can be any temporary activity or set of activities that have a specific output associated with it. Businesses increase their productive capacity one project at a time. Indeed, for ambitious small companies looking to grow and expand, the need to initiate the right projects and achieve the desired results is even more vital l than it is for huge national and multi-national businessesDespite the obvious need for a project management (PM) approach, most small businesses don’t bother. This constitutes a huge missed opportunity as effective project management impacts the bottom line. For example, research by the CBP shows that project management improvement initiatives improve project performance by up to 50% for the first project and can continue for each new project if the business offers ongoing project management tools and support. We could emphasise this point further by citing the Standish Group, who in their CHAOS Report conservatively estimates that 20% of money spent on projects is wasted because companies don’t have a consistent approach to project management.Let’s take a look at six reasons I often hear from small business owners that choose not to bother with project management and then critically address the misconceptions behind these reasons.1. Project management practices take more timeHaving a process to follow may add time to the duration of an activity. Doing something properly will almost always take a little bit more time than adopting a slapdash approach. However, if you where building a house, would you rather have a quality end result that took a little longer, or would you prefer to have it done quickly but with lots of problems? Given that poorly executed projects can be completely de-rail a small business if they go badly, doing it well is essential, and PM processes help ensure things are done well.2. Project management eats into the cash that I need to grow my businessA common misconception is that it is hugely expensive to implement PM process. The reality is that there are many free or low-cost sources of advice, techniques, tools, templates and project management services readily available and accessible through the Internet. If done correctly, any small business can implement PM processes, techniques and tools with very little cost. The likelihood is that small business owners are already using software and other tools that can be used for project management. For example, certain email software, spreadsheets, and other common software applications offer good templates for project management, especially if used in collaboration with some of the low cost project management services available for small businesses3. Project management requires skills that I don’t have and cannot afford to hireAlthough it does require specialised skills and experience to be an accomplished project manager, these are skills that can be learned over time. To move further up the learning curve faster, it is possible to take a PM course in as little as four or five days. Most small business owners tend to possess the knowledge needed for project management, and courses such as the Prince 2 Practitioner course would build on these skills while introducing the specific theories, tools, and processes essential for project management. Whilst business owners might not emerge from a course as a project expert, they would certainly learn valuable skills to apply to their small business.4. I don’t need the hassle or paperwork of project management.Every entrepreneur that starts their own business will, at some point, need to do a risk assessment, a marketing campaign or apply for finance. Being knowledgeable in project management and applying associated tools such as stakeholder analysis, communication planning and risk management will not only assist in many of these tasks, but will provide your small business with a competitive edge over competitors who do not approach.5. Project management will slow me down and I need to stay agile.Modern PM methodologies all acknowledge the importance of a tailored approach to project management. If your project requires speed, the right methodology can enable you to move quickly. Just as important, however, it will provide you with techniques to understand whether some proposed projects are worth pursuing at all. Rushing into situations without thoroughly understanding your environment is hazardous to the health of any project and potentially to the health of the business as a whole6. I am an expert in my industry, I don’t need project management.Most small businesses are started by a person who already has some expertise in their industry. This is unquestionably an advantage; however, project management should still be used to convert plans into reality. The main reasons for project failure tends to be poor planning, lack of capital, and lack of management. Project management, while not a cast-iron guarantee of success, will assist the small business in mitigating some of the common risks that so often cause project failure amongst small businesses.Even a brief look at the reasons often posited by small business owners for failing to approach projects in a systematic and different way that recognises their inherent riskiness and addresses some of the more challenging aspects of project work shows them to be of dubious merit. Without question, the quality of project outputs would be greatly enhanced and the cost of and time taken in delivering project benefits using a project methodology appropriate to the scale of the project.
The High-Performing Government Agency: Using A Marketing Mindset In The Public Sector
What Are Citizens Getting From Public Agencies?
All too often we hear of government programs that cause inefficient and wasteful allocation of goods and resources. Consider the example of the Australian government’s home insulation program (HIP), which was designed to prop up business in the wake of the global financial crisis, providing rebates to insulate the ceilings of 2.2 million houses at a cost of (AUS) $2.7 billion. As well as claiming that the scheme would create jobs, the government sought to boost its “green” credentials, insisting that home energy bills would be cut dramatically. Countless problems plagued the HIP; houses caught fire, thousands of cases of fraud were claimed, numerous installation companies went bankrupt, and a number of deaths and injuries occurred (despite multiple safety warnings from regulatory agencies). A lack of effectiveness in the program design, administration, and delivery arrangements and a poor management structure for dealing with the risks associated with a rapid program rollout (along with making the program instantly available to millions of household owners and suppliers without first piloting the offering) were cited by an independent review as the main contributors to the failure of the HIP program. After sustained media pressure, and in an effort to exercise damage control, the program was scrapped in early 2010.
With dwindling budgets and mounting expectations on government agencies to act in the best interests of their customers (the public), a new view about how to best develop and implement such ambitious government programs must be undertaken.
Learning From the Private Sector
Most citizens expect government agencies to develop and run programs that are relevant, efficient, effective, sustainable, and impactful to theirs and the nation’s welfare. With their activities under increasing scrutiny by the public, governments need to adopt practices and proven methods that facilitate the successful implementation of public programs. One solution is to adopt the best practice marketing tools that are routinely deployed within the private sector.
When a government department develops a “product” – be it a physical product such as running water in a poor village, an idea such as “don’t drink and drive”, or the provision of a service such as the upkeep of a national park for visitors – and then prices, distributes, and promotes it to a targeted audience to promote an exchange, marketing is taking place. By providing focus, marketing helps avoid the “knee-jerk reactions” that usually result in wasted time and resources.
Philip Kotler is one of the world’s foremost experts on the strategic practice of marketing. In his book, Marketing in the Public Sector, Kotler claims that marketing has been most overlooked and misunderstood by the public sector.
When applying a marketing mindset, Kotler and others would stress that there are obvious differences between public and private sector organizations. They typically have different mandates (citizen interests vs. maximization of shareholder wealth), competitive environments (monopolies vs. competitive markets), and focus (usage levels and cost savings vs. sales and profits).
Moreover, many of the perceptions and behavior changes that government marketing tries to address are long term projects. Monitoring the outcomes of a national smoking cessation program, for example, would typically require a 10 to 20 year perspective. While this may be a reasonable time horizon, some stakeholders, such as those within health authorities, may expect to see results a lot sooner: this can make government marketing a lot more complex than in the private sector.
Persuading people to break an ingrained habit or do something they find difficult, can be a significant challenge. This compares to the private sector where consumers are persuaded into choosing one brand over another – the results are far more tangible.
Despite substantial challenges, governments are still held accountable for tangible performance improvements. Whether a public agency wishes to maximize revenue, increase service utilization or product purchase, ensure compliance with laws, health, and public safety or to increase customer satisfaction, their functional mandates must be met.
And it should be highlighted that government has certain features that can be used to their advantage. For example, they tend to have more information on their customers then most private organizations would ever dream of.
Using the Marketing Mindset in the Public Sector
In order for programs to succeed, a disciplined approach to conducting a situation analysis, setting goals, segmenting the market, conducting market research, positioning, choosing a strategic blend of marketing tools, evaluating results, preparing budgets, and formulating an implementation plan is required. Adopting this strategic approach towards program or service delivery forces an organization to focus its efforts on priorities, rather than applying a “bandage” to a wide range of never-ending issues.
Publicly-driven organizations and professional associations need to adopt a marketing mindset in order to thrive. Kotler’s five principles of a successful marketing mindset are:
Adopting a customer-centered focus
Segmenting and targeting the market
Identifying the competition
Utilizing all four P’s in the marketing mix
Monitoring efforts and making adjustments
Adopting a Customer-Centered Focus
Too often, public or member-driven organizations plan and implement programs without consulting their clients and are left wondering why these initiatives are not getting the anticipated take-up. Effective organizations ask their clients what they want first – and then plan accordingly.
Starting with something as simple as a survey can be a powerful tool to figure out what your market – the public – needs, and how you can best position your product or service.
Segmenting and Targeting the Market
By developing a better understanding of the customer, the high-performing government agency can then begin to ‘categorize’ similar wants and needs into distinct groups that may require different products and services. With this in place, services can be far better targeted with the appropriate marketing strategies, satisfying the different preferences of each chosen segment, and optimizing the use of resources.
Identifying the Competition
One of the tricks in marketing is to describe offerings in short, simple terms. Schools are in place to provide education. With this same goal in mind, public schools compete with private schools, just as they do with home schooling. Government-run post offices compete for business with privately-run courier services, libraries compete with bookstores, and so on.
Offerings provided by the government are not necessarily the best answer to the benefits sought, and therefore public sector agencies must continue to look at what it is they offer, who their competitors are, and how their offerings match up.
The Marketing Mix (Product, Place, Price, Promotion): An Egyptian Public Sector Success Story.
With customer needs analyzed, the market segmented and understood, and the competition identified, all the elements required to shape the offering are in place.
To better explain effective use of the marketing mix, consider the ambitious (and successful) example of Cairo’s taxi scrapping and recycling project, which has delivered a multitude of direct and indirect benefits for citizens and project stakeholders. It was launched to support the enforcement of a 2008 traffic law that announced the end to the renewal of licenses for taxis older than 20 years, which made up the majority on the clogged and polluted streets of Cairo. The goal was to improve air quality and reduce greenhouse gases associated with Egypt’s aging fleet of taxis and other public vehicles. The project also tackled a variety of other issues such as safety (accidents due to mechanical breakdowns), economic losses (commute time due to increased traffic congestion) and the weak image the filthy, ancient cabs provided tourists.
Product
The taxi replacement and recycling program was launched on a voluntary basis, where private taxi owners received financial and other incentives to surrender their old vehicles for new, more fuel-efficient models, while the old vehicles were scrapped and recycled.
A range of models were available to choose from as part of the scheme, each one locally manufactured. Given the financial challenges to tax drivers that the purchase might present, the government introduced a variety of subsidies and discounts through collaborative efforts between the finance, interior, and environment ministries, several private sector participants (commercial banks, insurance companies, auto dealers, advertising firms), and other program stakeholders (taxi owners, the recycling and scrapping operator, and the World Bank Carbon Finance Unit).
Price
To maximize collaborative efforts, The Ministry of Finance (MoF), that spearheaded the project, structured it as a Public Private Partnership (PPP), with different government and commercial organizations contributing financial incentives. These included a low-interest loan offered by participating banks and sticker price discounts offered by automobile dealers. The MoF provided payment for the surrendered vehicle along with sales tax and customs fees exemptions for the replacement. Taxi owners were also offered an option to participate in an advertising scheme, where a portion of advertising revenue was directly paid by an agency to the lending bank toward vehicle owners’ debt service payments. The owners also received a reduced cost for maintenance and spare parts along with insurance for all new taxi vehicles against all standard casualties (theft, fire, accidents, etc.). With the combined incentive assistance, vehicle owners could expect to pay back the car loan in less than six years.
Place
Land, in the form of a project site, was provided by the Ministry of Interior (MoI) to complete all replacement activities, ranging from vehicle inspection and surrender, to financing and incentives and the purchase of new vehicles. The use of this one-stop-shop for the taxi exchanges made it convenient and helped achieve a high program participation rate.
The auto dealers, advertising agencies, insurance firms, and banks were also available to vehicle owners at the project site. Additionally, on-site personalized help was made available, where candidates were given an orientation on project details and provided resource material illustrating eligibility and participation procedures.
Promotion
To maximize participation, the MoF conducted a public awareness campaign prior to the project launch, which included announcements of the program through advertisements in newspapers, radio, television, and other public media. The campaign outlined the program objectives, eligibility and participation criteria, and financial incentives available to vehicle owners who volunteered to participate. The Ministry also established a telephone hotline to address all project enquires.
Monitoring Efforts and Making Adjustments
Key to the program’s success was careful planning and close monitoring. This included several stakeholder meetings prior to launch to ensure coordination between project partners, detailed record keeping (project vehicle and scrapped vehicle databases), and periodic random surveys of project participants to estimate emissions reductions. The program has also maintained a degree of flexibility, allowing for periodic procedural changes to be made based on feedback from the vehicle owner surveys and interviews.
With 20,000 vehicles replaced in the first year, and plans for the rollout to include all public transport vehicles, including microbuses, trucks, and buses, the program has made significant early progress. And the Egyptian government’s estimate of reducing 1.3 million tons of CO2e emissions between 2009 and 2018 is an example of the scale and reach that government programs can have, and the breathtaking effects their successful implementation can provide.
Conclusion
With mounting pressure on governments around the world to address citizen complaints, alter public perceptions, and improve performance, effective implementation of public programs is critical. In order to perform services that are in line with the public’s interest, governments need to introduce the marketing planning platform that has long been utilized by their private-sector counterparts. Those public sector organizations that adopt this approach, as we have seen from the example demonstrated by the Egyptian government, will have the right focus to deliver maximum value to society.
How To Earn From Advertising
Earning From Advertising
When it comes to the business and income opportunities present on the internet, nothing beats the scale of advertising. For beginning online entrepreneurs or internet marketers, buying and selling advertisement is the easiest and most accessible way to earn.
How can you earn from advertising
There are several methods on how you could earn from advertising. These opportunities can be distinct from the point of view of the business or company needing the promotion itself, or perhaps, on the side of ad sellers or promoters.
How companies earn from advertising
For companies who are involved in the selling of goods and services, generating profit from advertising can come in an indirect way. This is one of the basic principles in marketing; advertising indirectly increases revenues and sales by promoting the product to more customers and a wider market or audience.
How an internet marketer or online website earn from advertising
Selling advertisements on websites. The bulk of the profit and opportunity existing on the internet revolves around the sale of advertising spaces, banners, or links on websites. If you own a website covering a certain subject or niche and it receives a regular flow of traffic or visitors, you can sell advertising space. You can sell advertisement space directly to companies or perhaps, you can sign-up as a publisher or affiliate of an advertising program. And the most popular advertising program known today is Google AdSense. With AdSense, you will no longer need to personally look for companies who are interested on advertising. But the advertising income from clicks and visitor views will essentially be divided between you and the network.
PPC and CPC Advertising. Other popular methods of earning from advertising are the PPC and CPC methods. The principles are slightly different but the concept is rather similar, they both involve the task or function of driving traffic towards a website. PPC or pay per click advertising involves the sale of traffic. The company which advertises pays the company few cents or dollars for every visitor the PPC provider or company brings to his website. On the other hand, the CPC or cost-per-click is more of the search engine type of service. With CPC advertising, the company’s website is promoted or advertised at the top of search engines and for every visitor directed to it, the company pays the agreed fee or charge per click.
The New Breed of Advertisement Income
If you think you can benefit from either of the methods mentioned above, wait until you hear what the company earn from advertising has to offer. The marketing system of the company provides a mixture of the opportunities mentioned above to an individual or business. A business wanting to advertise its product or service can also earn by promoting the system. After receiving advertising credits and traffic exposure that would benefit its sales and revenues, the company can also earn affiliate income from referrals that also purchases ad credits. And this affiliate opportunity is not only limited to direct referrals but to the second line or level as well. The system also works best even for individuals who don’t necessarily need advertising but merely intend to earn from ad affiliate marketing.
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.