This question comes up a lot. What are the best home-based businesses? In the current economy, it is a question that has even more significance, and legitimacy. People have been losing their jobs at an incredible rate. What’s more, millions of people have been seeking new opportunities for years now, many without much success or even the glimmer of hope.The business world has changed. The thought of a job being secure is no longer the case. You must take ownership for your success. No longer can people count on their employer for their retirement or even for two years down the road. The internet is allowing people to work from home and achieve success at a much faster rate than previously.So what are the best home based businesses?Due to the amazing revolution known as the Internet, the best home based business is, by far, network marketing businesses. Network marketing allows anyone the opportunity to work from home and build their level of success that is comfortable to them. If they only have a few hours per week or fifteen hours a week to devote to it, then they can still find success when they work from home. If an individual wishes to expand their realm and put in forty, fifty, or more hours when they work from home, then they can do that as well and with the right opportunity, create generational wealth.The best home based business, then, would be one that offers flexibility to anyone as far as hours and commitment. Network marketing offers precisely this level of control to each and every entrepreneur.The word is entrepreneurLet’s face it; the vast majority of people simply take the “I will try it” approach to home based businesses and the majority fail. They’re unsure about the future and have heard the stories of those who couldn’t find success and wonder if it isn’t just a dream for the chosen few. When you’re trying to wade through the sometimes cool waters by asking what are the best home based businesses, you will undoubtedly encounter naysayers who think that the only true career is one in which you work for someone else.But without entrepreneurs, those who look to the future with hope and determination, many of today’s businesses wouldn’t even exist. Network marketing is an amazing journey and a wonderful opportunity to control one’s own future earnings. It allows people to work from home or from wherever they choose. Please do read it says work, it’s not netrich marketing. You must work as there are no get rick quick schemes!Passion is the keyI will talk about passion being the key to success with whatever you deem to be the best home based business for you. With network marketing, there are wonderful programs to join that cover nearly every topic and product you could think of. Whatever you choose to promote, though, should be something you are passionate about.It’s critical you have a good sponsor to help you succeed. The majority who fail in network marketing do so because they were never properly trained. They did not have a good sponsor, or mentor.When you have passion and are well trained, working from home can be an awesome lifestyle. The only limits you place upon it, are those you place upon yourself.This is what I teach, it is what I believe and it is has allowed me to be a stay home mother and business builder!Copyright (c) 2010 Amy Matteson
Actions Toward Succeeding in a Home Based Business
There are many mistakes that people make when starting a home based business. With just a few changes to these actions and adding a bit more knowledge and steps that same person can have a very successful home based business. The internet makes having a home business even easier than ever before.You need to set goals for your home based business when you start and every year after that. Some goals can be small and quickly achievable while others may take the whole year to complete. The goals must state what action you need to perform to achieve the goal and the deadline you give yourself to achieve the goal by whether it is a week, month, or year later.Schedule on your calendar the hours you are going to spend on your home based business each day. To succeed you must take the business seriously and not treat it like a hobby. Planning the time you will spend and the goals you will work on each day is important in order to stay on track for success. If you do not complete a days work just reschedule it into the following weeks work. Do not give up just because you hit some rough spots in time management or hitting your goals. Just keep on taking positive actions.When getting stated in a home based business it is important to focus on only one product theme or niche when you are learning the ropes. If you try multiple topics or niches then it will be hard to grasp the basics or get as much success from each audience as you could if you just worked on one niche in the beginning. Pick a product, topic niche that you think people want to actually buy products related to it. If they only like to talk about it but do not spend money on it then the theme may not be the best one to get started with.It is important to get some guidance from successful people in the home based business profession. Be careful to pick the right course or teacher. There are a lot of scammers out there who claim to be able to direct you to success but there information may be outdated or not even accurate at all. You need to find the best coach or mentor that you can that can help you reach all your goals. Research the best in the business you are starting such as affiliate marketing online. Then follow their direction as you move forward in your home based business.Stay flexible as you grow in your home based business. Just because one action worked five years before does not mean it will today. You need to be able to try new avenues to success as they become available through technology or through your knowledge as you follow your course of action.
Where to Get a Small Business Loan? Learn About Your Options and How to Choose a Good Organization
When they are first starting out, small businesses usually require loans to help them get going. Depending on your type of business and industry, you might need funding for inventory, strengthening your firm’s foundation, advertising, expansion, etc. “Where to get a small business loan?” is a very common question by owners of start-ups. Your choice of a lender could either help you in your success or cause damage to your business, so it’s important that you choose wisely.According to estimates, over 60% of small employer businesses have some sort of debt they are dealing with. If you choose the wrong lender, you could end up in an even worse situation. While many entrepreneurs and start-ups are turning to crowdfunding sources, this approach often requires a great deal of hard work, and most campaigns fail to reach their goal. There are also “Venture Capital” and “Angel Funding” solutions, but these types of alternative funding only play a small role in overall business financing.For many businesses, it’s still better to go the traditional route and apply for a small business loan. How do you know which lender to trust? How do you know where to get a small business loan from a reputable organization? A free quote is always a good place to start. You’ll definitely want to check with the Better Business Bureau as well. Only consider lenders that have at least a 3-star rating. Any complaints submitted concerning that particular firm should have been resolved.Where to Get a Small Business Loan That Won’t Scam YouReputation is also another important factor. Has a company you are interested in appeared in major financial publications, websites, or even television programs? Forbes Magazine, CNN Money, Business Insider, and INC 500 are always a plus.If you are in need of a particular type of service, there should be an ideal financial solution for you. For instance, some small businesses require a Working Capital Loan, some require financing for equipment, and others need assistance with vendor programs. There are also businesses that require real estate loans. Whatever your need capital for a start-up or need assistance expanding your small business, there should be a solution tailored just for your needs.Not only should you be able to obtain a free quote, the application process itself should be simple and straightforward. You’ll be required to provide some financial statements and personal background information, which will vary depending on the lender and what kind of small business loan you are interested in.As to the question ” Where to get a small business loan? ” It’s a good idea to start with US Business Funding. It has an A+ rating at the BBB and has appeared in the aforementioned publications. You can get a free quote if you apply today.
Should We Consider a Home-Based Business?
Why should we consider a Home-Based Business in today’s economy? Changes in America’s workplace are forcing us to open our minds and consider alternatives which, in the past, may have been considered by some as non-traditional. But of course, many of those people who become wealthy consider alternatives that the majority of the population deems non-traditional; otherwise more people would be financially independent!
I’m not trying to say that all people can or should become wealthy, but it seems evident that the business and job environment for the masses is rapidly changing. I’m only asking that you have an open mind and allow me to share with you some ideas about the pursuit of success utilizing a home-based business.
It’s been said that a mind is like a parachute, it works better when it’s open!
Happiness and Satisfaction
First there are some questions which we must ask ourselves in order to see if we really are satisfied with our current life. If you read the following statements and they stir no particular emotion, then you’re probably happy with who you are and what you’re currently doing.
I wish I didn’t have to pay so much income tax.
I wish my job or business paid me more money.
I don’t have enough money for retirement.
I can’t afford to pay for my children’s education.
I wish my financial situation would allow me to at least semi-retire.
I get so tired of my boss telling me what to do.
I would like to have the flexibility to spend more time with my family.
My advancement does not depend upon my accomplishments.
I’m not paid what I’m worth.
I’m not accomplishing my personal and financial goals.
I’m tired of dealing with employees.
I wish my job wasn’t so stressful
I want to control with and for whom I work.
Do you identify with any of the above statements? Someone once said that success is a journey and not a destination. The purpose for this communiqué is to identify individuals who sincerely want more financial success in their life but don’t seem to have the right Vehicle for their journey.
Years of experience indicate that success depends not only on the development of the individual, but also on having the appropriate vehicle. How many times have you seen people pour their heart and soul into a job or business and still not achieve the success they desire? Maybe that has happened to you. Let’s assume that you have the desire and persistence necessary to achieve the success you want.
How about your current vehicle, will it take you where you want to go? If the future is as the past, are you on track to achieve your goals and dreams?
How about you? Have you properly prepared yourself for success? If the answer is no and you are one of those individuals that truly possesses the desire and persistence necessary for more success, I respectively ask that you allow me to share with you a personal development program and business opportunity concept that has the potential to be that Vehicle to success!
Risk Tolerance & Reliability
When evaluating a Vehicle, we look at four distinct areas. First, the Vehicle must be safe in relation to the risk tolerance of the person. What is deemed as safe to a young person starting their career is certainly different from that of a person in or near retirement. Regardless, the height of our success should be limited only by our ability to develop the mental, emotional, spiritual, physical, and financial aspects of our own being… The vehicle must never be the limiting factor in our success.
An opportunity’s reliability is a function of several factors including age, management, market, and compensation. Each of those topics warrants their own discussions.
Suitability
Next the Vehicle must be suitable for the individual. Experts have always said find something you like to do, figure out a way to make money from it and you will probably be successful. Professional athletes who earn fortunes playing a game they love are extremely fortunate. But, most of us have learned that we can’t always be financially successful working at our hobbies. However, we all deserve the opportunity to enjoy what we do and to work in a positive environment.
Effort vs. Reward
Next, the activities surrounding the Vehicle must be doable and provide opportunity in relation to effort! Not everyone can be a scientist, a doctor or a CEO of a Fortune 500 company. However, any individual can obtain financial success if they can match their abilities with the appropriate vehicle. The Vehicle must be time proven and be doable by a wide array of individuals of all ages, races, educational backgrounds, and business experience. In the cases where individuals have demonstrated true desire and persistence over a period of time, their income levels have equaled or exceeded that of many CEOs. Although education and experience may reduce the time period for achievement, desire and persistence are more important characteristics for success with our opportunity.
Other Desirable Traits
We believe using an appropriate home-based business as a vehicle for success addresses the four areas of concerns better than most other alternatives, whether for an additional $50 per month or for $50,000 per month of income. Having a home-based business is not a new concept. We’re asking that you consider adding a home-based business to your current job or business income. We believe that a home-based business possesses at least three additional desirable traits: a) immediate tax benefits, b) flexibility of time and activity, and c) a favorable opportunity to investment ratio.
Tax Benefits
Owning a home-based business allows us to immediately make many of our current home and automobile expenses tax-deductible. In addition, other tax benefits include converting children’s allowances and living expenses, medical and dental expenses not covered by insurance, educational expenses, and travel expenses to tax-deductible expenses. In total, there are at least nineteen different types of tax deductions applicable to the home-based business. In many cases, these are expenses we already have but which are not currently deductible. If done properly, converting these expenses to deductions can often save enough in income taxes to finance a major portion of the new home-based business!
Let Uncle Sam finance your home-based business.
Uncle Sam wants to give you these deductions for a home-based business in order that you generate more income for yourself and others which results eventually in more income taxes for the government. Although I’m not qualified to give tax advice, I can refer a tax service that I use which specializes in home-business tax deduction planning.
Current Trends in the Workplace
The availability of personal computers and people desiring flexibility of time and activity are the catalysts for a major movement of people working at home in corporate America. Those people desiring flexibility of time and activity and, in addition, want control of their financial destiny, are also starting home-based business en masse. Most people need additional income. Many people want more time with their families. Some simply want to have control of their time. We must be aware that the more obligations we have to other people, the less control we have over our own time. Our own desire for success is the only factor which controls the time of a home-based business owner.
Investment
Normally, when we think of our own business, serious investment immediately comes to mind. Many mortgage their homes to start a small business. Even if the individual possesses the desire to own their own traditional business, the majority of people do not have the proper education, experience, or disposition to successfully run a business which has risk of investment loss, debt, employees, inventory, advertising, customers, billings and collections and other on going problems! History shows that a majority of those businesses won’t last three years. In many cases, even if the business succeeds, it would not have the potential to provide financial independence without total domination of our time, energy and attention.
Franchises
Most franchises cost tens or hundreds of thousands of dollars and a percentage of the gross revenue, regardless of profit. Our opportunity requires a very small investment and has virtually unlimited income potential. The potential is limited mainly by one’s own desire and persistence and time of involvement.
Network Marketing
We are not asking that anyone change everything immediately. We are however, suggesting that people consider the addition of the right Network Marketing home-based business starting their journey of financial success in a different direction. Having a home-based business is not a new concept. Network Marketing is not a new concept. Having a home-based Network Marketing business is not a new concept. However, never in the history of our country has the concept been so prevalent and is fast becoming the norm rather than the exception!
The reason is very simple. Our concept is providing American’s with what they want; control of their time and financial opportunities proportionate to their abilities and effort.
Choosing the Mobile Advertising Network That’s Right for You
As we move further and further into the 21st century, we find that mobile devices are getting smarter and more useful to users. Take the case of mobile advertising networks that work as a system to deliver solutions so that it optimizes a company’s advertising strategies, besides also tracking analytics and maintain a web of applications that deliver quality results across a spectrum of platforms including video and the Internet. This advertising mode first made its appearance with the coming of the iPhone, which has proved to be the star of the advertising.
The mobile advertising network is poised to excel along with the widespread usage of smartphones. These days, this form of advertising can be studied under three kinds of categories:
• Blind networks: As far as advertisers, publishers and impressions go, this form of advertising is considered the largest and generally works on the basis of CPC. These mobile advertising networks have options to target specific content channels but do not allow advertisers to opt for specific websites. The advertising networks that fall under this category are BuzzCity, Adfonic, AdMob, Madvertise, Admoda or Adultmoda and Mojiva.
• Premium blind networks: This form of advertising networks is generally mid-sized and gives newspapers, operator portals and broadcasters a higher premium. So, it’s not surprising that they bring in a higher percentage of brand advertising on the basis of CPM. In this category, you can choose either semi-blind or blind targeting with options to search and display advertisements or go in for particular spots on sites that you choose. These include Hunt Mobile Ads, Madhouse, Millennial Media, xAd, Greystripe and Jumptap.
• Premium networks: These mobile advertising networks are popular with big brand advertisers willing to pay top prices to get prime locations on premium networks with a CPM pricing model. They usually offer superior direct sales and support and a multitude of targeting options. Well-known in this category are Mobile Theory, YOC Group, Hands, NAVTEQ Media Solutions, Microsoft Mobile Advertising and Advertising.com or AOL.
In order to choose a good network for your business model, do the following:
Check that your network has an extensive reach, locally: Is your advertising network able to connect with local business advertisers? In fact, your network should be serving about 60%-70% of local mobile search applications.
Does your network specialize in localized content? If yes, your network will serve ads directly to his local customers. Your ads should be reaching people according to their ZIP codes as far locally as possible, rather than at city level so that they are relevant in a given context and locally too.
Does your network offer Search and Display Advertising? You’re sure to get SMS and display ads on your advertising network, but what about Search and Display advertising? Ideally, your mobile advertising network should offer you both.
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.