Where are all the good people? I often get asked this question when new people first join me in a home based business opportunity. You see, we have been conditioned to follow the pack and do what everyone else is doing, even if its the wrong strategy. I see many leaders preach about duplication and follow along on how they made their fortune in network marketing. The problem with that strategy, is what worked well for them, may in fact not work well for you.In today’s article, I will outline 3 areas of where you can go to find and locate good quality people. Many people are probably familiar with the first two areas, but not necessarily realize the advantages of organic search results, especially if you are just starting out.1. Warm Market – Is this still a good way to build?We have all heard the stories about making a list of 25 or 50 people that you know, get some training and start calling them to build your home based business opportunity quickly. Hey, I am the first to suggest doing this only if you feel comfortable doing so. That may be a contradiction to the super star network marketers advice, but here me out.Let me repeat, call your warm market (circle of influence) if you are OK doing so. If you are not, then you will need to explore other effective ways to build your home based business. The fact is, you will likely utilize a variety of methods to build your business opportunity anyways. I am just tired of the 1 approach fits all mentality to this business. I am still in the trenches day in and day out. Over the years, I have found that I no longer want to approach too many of my friends. Its a personal choice, but one you should consider as you build a business.2. Social Networking Sites – Are they effective?Several years ago, I reached out and started working the social networking sites. I really knew little about the process and wanted to make sure before I tried building my home based business opportunity by this method, that I understood the rules and how to maximize my time. What I learned over time, you should never try and sell something to someone in social networking sites. It is far better to get to know people, make friends and in time, people will ask you what you do.I have seen too many people try and come in, make up a MySpace, Twitter or Facebook page only to fail. The problem is there approach. Their home page is a like an advertising billboard. Most people ignore them because they have become conditioned seeing them all the time. If you want to stand out, build a nice profile, without all the in your face approach and reach out daily to make friends. In the course of a year, you could have several hundred close contacts and some may even join you in your business.3. Organic Search Results – What is this all about?In the past couple of years, I had a desire to finally start learning about driving traffic to my websites via organic search results. The problem was I didn’t know, what I didn’t know. So after searching around, I found some good people to educate me on the fine art and science of SEO. You see, I believe this is by far the best strategy overall for my situation. But there are some really good reasons for it.During the past 10 years, I have been involved in a few home based business opportunities. I really never made a lot of money, but I certainly learned a tone of skill sets by some great mentors. The problem was after I made a decision to leave, I had to start over. Well, I’m tired of starting over each time and decided that if I went with another company, I would build my home based business much differently this time.I wanted to only build by organic search results. You see, what happens in 2 years down the road if the company I am currently involved in goes bankrupt, they change the compensation plan or I simply decide this is not a good fit for me. Well, what do I do if I build the traditional ways. You got it, I am left to start over yet again.So this time, via search engine optimization (SEO), I have decided that no matter what happens with Company A in the future, by having my websites at the top of the search engines, I will always be able to make money in a home based business. If Company A goes under, all I need to do is look for another company that I like, change the links on my websites and within a short period of time, I am back in business because of traffic coming to my website.Each of us has to decide what methods we should use to build our particular home business. For many people, they enjoy the one on one interactions, doing home parties and building by traditional methods. Hey, that’s OK with me too. Many people are choosing to go online and look for ways to make money. You need to take some time, educate yourself and understand there are pros and cons for each method. No matter which method you choose, understand it will likely take 2 to 4 years before you make any serious money. None of the methods are instant wealth creation methods, but rather long term viable options.Make it a great day,Darrell Lischka
Take the Plunge Into Occupational Freedom With A Franchise Home Based Business!
There are many benefits to owning a franchise home based business. That’s why so many people are looking into the many excellent home based franchise business opportunities available on the internet today. The categories of home based businesses to choose from virtually knows no bounds. From window cleaning to cosmetics, you name it, and you can find a home based franchise that sells it. Franchising makes it easy to start a business because rather than starting from nothing, a new franchise owner need only follow a proven business model to find success.Aside from this, there are many other good reasons to begin a franchise home based business. Not the least of these is the fact that you can run your business from home. Additionally, you can combine it with your day job for as long as you need to do both. In a short time, however, you should be able to drop your job and make a nice living with your home based franchise business. Naturally you will experience quite a bit less stress working for yourself at home, as opposed to traipsing back and forth to an office, job site or other place of business at the behest of a boss! Dealing with traffic on a daily basis is said to be one of the factors which is most negative on ones health, along with the numerous toxins in vehicle exhaust which are breathed in while on the road.You are sure to enjoy the personal freedom brought to you by owning your own home based business. The ability to make your own schedule, and set your own priorities, is unsurpassed in the realm of occupational freedom. In fact, you may find yourself more productive working at home than you have ever been in an employment setting. Consequently, a home based franchise business can bring you tremendous financial benefits, because you will be earning what you are truly worth, and not what someone else deems to be the suitable pay for the job. In addition, you have the potential to be earning a percentage of the efforts of others that you will bring into the business, therefore multiplying your income without having to multiply your valuable time. Not only can you make good money, but you can also save substantial expense previously spent on transportation, business clothing and so on.Owning a franchise home based business lets you spend quality time with the family you love, while earning a good living! With so many choices in franchise businesses available today, there is no reason why you should not choose your favorite and take the plunge!
Small Business Websites – Why A Small Business Website Does Not Produce Results
When a small business decides to take their business online there are usually several mistakes that they do. This is partially due to lack of experience and often lack of knowledge. There seems to be a trend that small businesses think of their website as an online business card instead of a marketing tool. That is where the majority of them go wrong. So let’s take a look at some of the most common mistakes done when a small business takes their business online.1. Order of linksSo many times you visit a small business website and they proudly flag the “about us” link as their first link. This is called the pride link because they often think that telling people about the company is the most important thing. The links should be in order of importance. Not in the order of the business owners EGO! If you use a website designer and he does consult you on the order of links, chances are you should be using someone else or at least make sure you educate yourself about online marketing because your website designer sure hasn’t!2. No focusMost small business websites lack focus. When you enter you are not sure where to go next which makes it hard for the user to understand exactly what he is supposed to do. The website should flow and the user should be able to make sense of the site within a few seconds of opening it up.3. No sale / No lead setupMany small businesses do not use their website to increase sales directly or capture leads. It is nothing more than an online brochure or business card. Sometimes the information is more confusing than it is helpful. If you competitors site is easier to navigate and captures either the sale or lead, you just lost a client. A small business websites needs to be even more on top of catching leads than a corporate website because every client lost counts more!4. No analyticsMost small business websites have no clue what people do when they enter their site. No clue what users are really looking at and where they are losing their potential sale or lead. If customers just walked in and out of their place of work eyebrows would be raised and something would be done. Shouldn’t the same thought process apply to the site? You need to know what is going on with your small business website and what users are doing.5. No marketing purposeThis is the biggest “Whammy” of them all. Small business websites tend to fail seeing the potential of using the website as a complete marketing tool. The fundamental reason to take a business online would be to do marketing. The lack of marketing vision explains the mistakes from above. If just this single piece was in place when a small business builds their website, many of the other things would be solved because they would educate themselves about what it means to have a marketing tool!6. No results!This is no surprise considering everything above. If there is no purpose, no focus, no vision and no marketing thought behind the site then there are probably no results from the site either. What is even worse is that most small business websites do not even measure results or understand how to measure results from their site. Once again it is a lack of understanding more than anything!So what can a small business do when they are ready to take their business online and setup their small business website? The most important thing is to educate themselves in a few areas. The most important ones being, what you need to consider before building or having someone build your website. How to use the website as a marketing tool and it would be extremely beneficial to you if you at least had some understanding of what SEO is and how it works. What is the difference between a website designer, website developer and an online marketing company? All of them do different things and have a different understanding of how to use the internet; the question is what purpose is your website supposed to serve? For most it should be a marketing tool, because the internet is the most effective marketing tool available!
Here is How You Pick the Right Home Based Business Opportunity
Are you interested in starting a home based business?
Starting your own home based business is a smart thing to do because it will enable you to earn income either part time or full time from home, take control of your financial future, give you more time with your family, ease the stress burden in your life and so much more.
But where do you start? How do you find a home based business that is right for you?
There are lots of work at home scams online today that will leave you broke before you can even ask “what happened?” This article will help you to find the right home based business by simplifying the search process.
Step 1 – Ask yourself the following questions
A. What are your hobbies?
B. What are your personal interests? Or what do you enjoy doing?
C. What are you passionate about?
D. What do you enjoy doing for family and friends?
E. If you could have a dream job what would you be doing now for a career?
Step 2 – Take an honest look at your answers to the questions from step one and search for a home based business that deals with something that you enjoy doing, are passionate about and could eventually see yourself doing as a full time career.
Step 3 – Once you find a home based business that excites you the next step is to do more research about the company. In doing your research I would use Google, work at home forums or blogs and last but not least the Better Business Bureau because the BBB will give you a report of that companies activities and let you know if the company has a good or bad reputation.
Step 4 – Make contact with a distributor or sales representative for that company. Once you make contact see if there is a pre-recorded presentation you can listen to, Webinar you can watch online or in person sales presentation you can attend. Don’t neglect this step because the more information you have about the company the better!
Step 5 – Before you join ask your recruiter or upline the following questions.
A. How long have you been with the company? If they have only been with the company for less than 6 months watch out because those people are only opportunity hoppers and have no long term success in the industry.
B. How much money have they made in the company? Can they provide documentation of their income? If they can’t or won’t provide income documentation watch out for people like this because they may be lying to you.
C. What type of training and support will they provide? Any company that you sign up with should provide you with the knowledge and support to get going because without adequate training you’re going to be left hanging.
Step 6 – Stay committed to your home based business. This is one of the most important elements that people lack when they join a home based business because the average person that gets involved in a work at home opportunity buys into the false claims on money they can make with very little work and when the business opportunity does not deliver on those claims they give up within 30 days or less and begin to seek another home based business opportunity. For true success in your home based business I recommend that you stay committed to it for a minimum of 90 to 120 days because this is a good bench mark to reach before you ask yourself if the business is going to work out or not.
Step 7 – Stay motivated! Another important thing that the average person lacks in starting their home based business is the motivation to stick with it. Here’s how you can stay motivated.
A. Find a mentor. This person should be someone who has achieved what you hope to achieve in your life. You want to find someone who has the answers to your questions and can provide you with the motivation and encouragement to keep going when you feel like quitting.
B. Hang out with positive people.
C. Start reading personal growth books. I recommend Anthony Robbins, Jim Rohn & Dale Carnegie.
D. Watch personal growth DVDs. You can easily find great personal growth video content on YouTube and just about everywhere else online.
E. Write out your goals and what you want to accomplish for your life.
F. Keep pictures in your house of the things you want to buy, places that you want to go and things that you want to do with your life.
I hope these steps will help you in finding the right home business opportunity and accomplishing all your goals and dreams!
Best Advertising and Marketing Agency in Delhi
India is a developing country and staying at the second place in the world for its population. Advertising and marketing industry in India play an important role to establish startups and making bands for many old organizations. An advertising agency has the great scope in India to earn the profit in present days.
An advertisement is known to be the main factor for a successful business. There are several types of advertisements. With the increasing requirements of advertisements for growing business, there has been a noticeable growth in the number of media advertising agencies.
There are different forms of advertising. The various methods of advertising products through Print, televisions, newspapers, radio, Internet, emails and so forth. The main objective of these agencies is to take benefit of advertisements to increase the sales of a company and thereby overall profit.
The advertising agencies in India present are not just developing creative ideas for print and TV commercials, but are diversifying the ads in a big way. They are searching for newer paths to reach customers. Thus they are doing by harnessing the actual power of unconventional media like ground promotions in malls, events, Radio, movies, Internet, celebrity endorsements, etc.
Thus, a single ad agency in present is offering a plethora of services from content creation, developing the artwork, print media, TVCs, radio jingles, internet advertising, promotion in movies, outdoor advertising, POPs, media planning, public relations services, social media, marketing consultancy services, amongst others.
By using the media advertising services for marketing your products, you can save a lot of time and money. It is also vital to bear in mind that your advertising company should have a thorough idea about your products so that marketing is done effectively and efficiently. Poor advertisements lead to poor response and lower sales for everyone. So it is crucial that you chalk out a plan along with your advertising firm in order to market your products as you wish.
Centumad is a creative advertising and marketing agency in Delhi NCR, India. It caters to the field of advertising, media and marketing services. Centumad provides all the information from the industry, from latest news updates, discussions, views expressed by famous people in the area, analytical information, brand updates, events, latest trends and much more. With a vast consumer base and a good reputation over the last 35 years in the industry, the company offers great opportunities for advertisers to advertise with them and reach out effectively to their customer.
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.
Five Tips for Selling at Live Auctions
Ah, the old-fashioned country auction! The idea of a country auction conjures up certain images for people. The image of a fast-talking auctioneer offering up an antique table or chair is a popular example.
People who are buying household goods or collectibles are looking to get their items at the lowest price possible. However, the people who are selling their items at auction are hoping for the highest price!
Unless a person is in the business of buying and selling antiques or other items, not a lot of thought goes into how goods are prepared for sale via the auction process. However, if you are one of the growing number of people using auction venues to sell your collectibles or other inventory, there are a few things to learn first about how to sell at auction before you bring a truckload of stuff over to the next event.
Tip 1: Make sure the things you want to sell are a good “fit” for the auction house you’ll be using.
Never bring a load to an auction house without actually having been to one of the previous auctions. It’s important to get a feel for the type of goods that the house sells. For example, at one very rural country auction it was common for the owners to sell live chickens, pots and pans, car parts, and farm equipment.
After close investigation, this would not be the right venue for selling your daughter’s “Hello Kitty” collection. On the other hand, the spare John Deere parts that you bought at last week’s yard sale might be just the right thing for the buying crowd at this auction.
Tip 2: Be sure you clearly understand the terms and policies of the auction house.
Visit with the auctioneer ahead of time. Call to find out what the best days and times are to visit. One of the worst possible times to drop in for an informational visit with an auctioneer is the day of the auction. Call ahead and ask. While you’re at it, find out what are the best days and times to drop your stuff off.
Once you have a little time with the auctioneer, you’ll be able to find out what type of commission he or she takes from consigners (which is you), and what type of paperwork might be needed. Some auction houses send out Form 1099 tax forms at the end of the year. An auctioneer may need to see your identification and have you fill out a W-9. Be prepared.
Find out what happens to your items if they don’t sell. For example, some auctioneers may have a minimum starting bid. If, for some reason, one of your items does not sell, it may be grouped with another one of your pieces. Know the auctioneer’s strategy beforehand so that you aren’t surprised on pay day.
Tip 3: Make sure the auctioneer knows what you’re selling.
It might be perfectly obvious to you that the signed print you are consigning is a rare and valuable piece of art. However, the auctioneer may not know this particular artist. Make a note of anything particularly special about your items, and leave the note with the piece. Be sure to tell the auctioneer about it as well. He or she might determine that this is something to highlight on the company website or in the newspaper listing.
Tip 4: Present your items neatly.
No one likes to have to dig through a box full of grimy and greasy car parts to see what treasures might be in there. Separate the parts and lay them out on a flat, or use more than one box to de-clutter the lot.
There is no need to buy fancy display boxes. It’s easy enough to go to the local convenience store or supermarket and ask if you can have the emptied boxes or flats that they are discarding.
While it’s good to present clean items, take care not to ruin the value of anything by over cleaning. For example, if you find some old cast iron cookware, clean the obvious dirt and grime, but don’t scrub it to its original finish. For many people, this ruins the value of the item. So, clean and tidy and organized is the key here.
Tip 5: Don’t complain to the auctioneer if your stuff doesn’t sell for as much as you’d like.
The phrase to remember here is, “You win some; you lose some.” That’s just the way it is. There are some days where an auction house is loaded with people who all seem to want what you’re selling. There will be other days where the crowd is sparse, and the bidding is simply not competitive.
Remember that it’s in the auctioneer’s best interest to sell your things for the highest possible hammer price. But sometimes, it’s just not going to be a stellar sale. The auctioneer is only human, and is also disappointed if a sale doesn’t go as well as planned.
If you notice that every time you bring a bunch of goods to sell that you’re not realizing as much as you think you honestly should, try another auction venue and compare apples to apples. That is, bring the same types of items to the new auctioneer and compare the results.
Unless the auctioneer is particularly disagreeable or inconsiderate to you or buyers, there is no reason to confront him or her about a sale. If you find you just don’t care for an auctioneer’s style or methods, find another one. Believe me, there are plenty of them out there!
The primary thing to remember as you learn how to sell at auction is that the business is unpredictable at best. You will have good days, some not-so-good days, some great days. The more you sell, the more experience you will gain, and the more enjoyable the business will be.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.