A Home Based Business – Five Things You Should Know About

Over the years of working as an Internet Marketer I have come to learn that it takes a lot more than just knowing the methods and strategies of Internet Marketing to run a successful Home Based Business.Most people don’t seem to talk about these things or they simply forget. So here are a few of my observations.1. You are now the boss.When you start a Home Based Business, you are the boss, so you don’t have to answer to anyone, except yourself, of course. You need to be disciplined and force yourself to do the work that needs to be done. Sure, you’re not going to get fired if you don’t do your work, but you also won’t get things done which could be the downfall of your business.Quite often people think anything goes when you work from home, but you should treat it no different than any other business, online or offline.One good idea is to figure out the time of day that is your most productive and set a work schedule for yourself. Set aside those hours and make sure you schedule in breaks. Try and stay as productive as possible during those hours and limit the work you do outside of that schedule.Stay focused and on track. Create a “to-do” list for each day. Outline tasks you’d like to have finished by the end of your work day. The feeling of accomplishment you get when you cross of an item will keep you motivated all day long.If you need inspiration for an idea or just need to take a break, get away from the computer. Quite often good money making ideas come when you’re not sitting staring at the screen. I’ve never had success by trying to force an idea and believe me, I’ve tried that.2. Your home is now your office.Create a dedicated workspace for yourself. Slouching on your couch in front of the TV, with your feet up on the coffee table working on your laptop, does not count as a workspace. Get yourself a real desk and keep it organized. Not doing this could lead to distractions which ultimately affects your work schedule. Oh, and keep it clean.Eliminate distractions before you start working. Finish up whatever small chores you need to do for the day so you don’t have to take care of them when you’re on a roll. Only do work related tasks while on your work schedule.3. Make sure you take care of yourself.If you’re not feeling well, take sick days. You’re human, and just like everybody else, you need time off to rest. Grab a blanket and take a nap on the couch. You may be capable of sitting up, but that does not mean you need to be working. Take time to rest your mind and body. Trying to work when you’re sick is only frustrating and unproductive.Speaking of staying healthy, you need to exercise. It’s easy to let yourself go when your only commute is from your bed to your computer chair. Take care of yourself and get a gym membership or at the very least spend some time walking outside. Keeping fit allows you to stay focused and energized all day.One of the hardest adjustments to make when starting a Home Based Business is dealing with being alone for extended periods of time. You need to find ways to stay social. Working alone can get depressing and having a social outlet is a vital part of success.Try and find someone local who is also working from home to meet with every now and then for lunch or to discuss ideas. At the very least, invest in a web cam and keep in touch with your friends and family through Skype. If all else fails, get a pet. Pets make the day less boring, and yes, you will start to talk to your pets.4. Don’t work 24 hours a day.Although you work at the same place that you live, you need to find a way to still keep these lives separate.Often people think they can work 12 to 14 hours per day, 7 days a week simply because they have nothing else to do. There’s no easier way to burn out than trying to work such long hours. You simply can’t stay focused and productive for so long every day.Respect the weekends and take time off on holidays. It’s okay to let an email wait until the morning. It’s okay to have a personal life. You do not have to be readily available every minute of the day.5. You get to live an awesome life.If you reach a point in your Home Based Business where you can work full time, that is amazing. It’s a very big accomplishment that very few people can achieve.People often tell me how they envy that lifestyle. No more working 10-hour days in an office building and often coming home stressed about your job, boss, deadlines, salary, or any number of things that accompany an office job. Limited to the amount of sick days you’re allowed to take! I’m forever grateful that I don’t have to deal with any of that.If you have an opportunity to start a Home Based Business, definitely give it a try. It will be challenging at first, but there’s nothing that can match the feeling of running a successful Home Based Business.So, these were just a few things I’ve learned over the years. I’m sure you have things to add to this list.

Getting Cranked Up With A Home Based Business

It’s no secret that in today’s economy, it is becoming increasingly difficult for one to be financially-independent, especially with the rising cost of goods and lack of jobs available. So it would really be a blessing if you can earn some extra cash on the side that will help keep you in good shape. Initially, it might not pay enough for you to be completely independent, but any amount of cash that can help pay the day to day expenses is a very good thing. This is where the importance of home-based business opportunities comes in, as it allows you to earn that extra bit of cash to ease your worries.How to start your own home-based businessThe best way to go about starting your home-based business is to identify what you love to do, and then see if it can be turned in to viable home-based business. Complicated as it may sound, it really isn’t. For instance, if you are great at sewing, then this can easily be turned in to a lucrative business opportunity with little or no investment. You don’t even need any signboard outside; you can conduct all your advertising and handle your bookings online.Most businesses nowadays start as small home-based business operations that grow in time and find themselves in a position to expand further. There is no reason why your particular home-based venture can’t do the same. All you need is the right attitude and a market that is ready for your particular idea and your business will surely be successful.Online businessesThe easiest and most common home business opportunity lies in e-commerce. It is by far, one of the fastest growing industries in the world in terms of the number of businesses that have taken that route. The numbers are growing even further with every passing year. Whether you want to sell your clothes or any other goods that you may own, selling online is one of the easiest ways to earn money. You would just need to check in a few times a day to see if people have placed any orders. People have even started to sell customized t-shirts and shoes online, and have adopted this is as a full time, legitimate home-based opportunity.You can even be a professional seller at auction sites like yahoo auction or eBay. This would require you to ship items and wait for the money to come in. According to eBay, there are over a million professional sellers on their website, and you can add your name to that list if you want to adopt this as your home-based business operation.ConclusionWith living and earning money becoming more and more difficult these days, starting a home-based business can really be a very practical move that you should be considering. However, your business operation will not be worth it if you are earning only a minimal amount for the effort you put in. So to ensure that you will profit from your endeavor, plan and strategize very carefully. And when you start getting some profit, be sure to put aside some so that you will have something to reinvest for the future of your business.The ultimate purpose of all businesses should be to grow and this is definitely no different for a home-based model.

Tips To Increase The Reach Of A Small Business

A ‘small business’ gets defined as a business that has less than 500 employees. If you are an owner of a small business, then you do not have the luxury of experimenting too much. You have a limited budget and perhaps, less than 50 employees working under you. And added to this is the excessive pressure of reaching your desired goals as quickly as possible. It does not take a rocket scientist to understand that a small business has very little time to make it big. With all the competition breathing down its neck, it has to use all its resources to their maximum potentials.So how can a small business increase its reach and influence with all its meager assets? Here are 5 ways which it can consider to enhance its authority:#1. Indulging in Speaking EngagementsA small business focuses on a certain domain, and it’s natural for its owner to have all the needed expertise. He can use his knowledge to enlighten other people like business owners, aspiring entrepreneurs and students. It actually does not matter whether the speaking engagement is free or paid. If an owner is brining himself in front of new people, then he is also brining his small business in front of prospective customers.#2. Attending WorkshopsUnlike a speaking engagement where an owner can talk about his expertise, a workshop allows him to teach people to do a little bit of what he is doing. So a workshop is not only about passing some tips and advices, but also teaching new skills to other people. As an instance, an owner can become a special guest at a local college, and teach on the continuing education level. In this way, an owner can easily educate people about his business and its products and services.#3. Participating in Social MediaSocial media is very important for a small business because it does not demarcate it from a big brand. In social media platforms, every business starts its journey from the same level and has an equal chance at success. But social media is a large and complicated realm. Therefore, the owner should hand over the duties to catapult the social reach to a professional agency. In this way, the business will have better chances of succeeding, and the owner can have a lot of spare time to focus on his other responsibilities.#4. Becoming a News Source ExpertA small business owner needs to contact broadcast outlets like radio stations, TV stations and local newspapers, and offer himself as an interview subject. The owner can share his business stories on the interview. If the interview goes well, then chances are high that he will get called back again. The owner will soon become a go-to expert with lots of important connections, and might also get his own daily segment on a local radio or TV channel.#5. Training Interns and ApprenticesIs there anything better for a small business owner than training the younger generation who wants to follow his example? He can start internship and apprenticeship programmers, and hire aspiring candidates. He can contact unemployment agencies, and train people who are out of work with some new skills. This will increase your reputation in the market, and help you grow quickly.These are the 5 ways by which a small business owner can increase its reach and influence. So what do you think about these points? Will you adopt them and try your luck?

Family Business Succession Planning

The business section of the March 20th issue of the Arizona Republic had a front page article titled “Families Passing Business Torch”. My practice often involves working with families on the subject and I found the article very timely, particularly since studies tell us that during the next several years 30 to 40 percent of both family, as well as non-family owned businesses will “attempt” to transfer ownership. I say “attempt” because 2 in 3 family businesses fail after transition to the second generation. As business owners approach retirement age, they are dealing with several complex questions and conflicting goals.

The business owner wants to monetize his equity in his corporation, and in many cases there is a desire to maintain family ownership of the business. If the business is sold to outsiders to achieve personal financial security, the children are left without the legacy of the family business. Alternatively, if the owner decides to transfer the business to family members, then the owner will likely be without the same personal financial security and may have to deal with a significant gift or estate tax liability.

In many cases, business owners adhere to what I call the “avoidance of the unknown syndrome”, which translates into: if I don’t think of the problem it doesn’t exist. Statistics tell us that these situations often wind up resulting in a forced sale of the business by the owner’s estate in order to settle the estate taxes. One very notable example is the Robbie family’s compelled sale of their ownership interest in the Miami Dolphins and Joe Robbie stadium. The cover page of the March 26th issue of the Wall Street Journal mentions that treasury officials continue to be opposed to a reduction or elimination of the estate tax contending it would be too costly and a sop to the rich.

There are many different options to accommodate the objectives of business owners relative to succession planning, but some of them are necessarily more painful than others and/or more tax expensive than others. One strategy that has been around for about fifty years and is currently employed by about 12,000 U.S. corporations is the Employee Stock Ownership Plan (ESOP). Simply stated the most notable advantages to a business owner are:

He can sell a portion of the business to the employees in a very tax-friendly manner,
Keep or retain actual control of the company in the family; and
Significantly reduce his income, gift, and/or estate tax liability.
The ESOP strategy is often used as an ongoing tax shelter to be used later for succession with much additional tax benefit.

This represents the best of all worlds since the business owner is able to (1) to achieve personal financial security by liquidating a portion of his single largest asset and (2) to keep the family business in the family. When properly structured, the ESOP can enable the business owner to obtain greatly enhanced liquidity and diversification — with far more real value. Approximately fifty years ago, Louis Kelso was successful in convincing Senator Russell Long, the then chairman of the Senate Finance Committee, to propose legislation that would provide very dramatic tax and cash advantages to business owner ESOP sponsors.

Congress enacted the legislation and today, fifty years later, those benefits remain available to business owners of closely held companies. Under Internal Revenue Code Sec. 1042, a shareholder who sells stock to an ESOP is able to forego the payment of any capital gains taxes due — if the sale meets the specified conditions. Essentially the business owner has a year to reinvest the cash from the sale of his stock to his ESOP into some alternate type of security.

This provides a superb means of income during the retirement years and if held until his death the business owner’s family will never have to pay capital gains tax on the ESOP stock sale. An aggressive gifting program to family members can produce significant income and estate tax savings for the closely held business owner. If the business owner has a philanthropic inclination, by using a strategy called “CRUT” (charitable remainder unitrust) a significant amount of annual income can be guaranteed for Mr. Business Owner during his and his spouse’s lifetime in addition to a large upfront tax deduction. And in fact, structured properly the family wealth can be magnified, as well as providing a significant sum of money to the charity.

Currently, the U.S. gift and estate tax rates are significantly higher than capital gains and even ordinary income tax rates. Combining an ESOP with estate planning techniques can result in business owners successfully keeping the business within the family or where this is not the intent, provide a very unique mechanism to transfer ownership to non-family members. In both cases, because of the dramatic tax and cash advantages it makes good sense for business owners to explore their options and the ESOP strategy is certainly worth looking at.

Effective PR For a Small Business on a Budget – Get Local and Get Online!

If yours is like most small businesses, you can’t afford the luxury of a PR department, much less a dedicated PR agency or even one employee responsible for external communications and PR. However, this business function is critical as the world of communications continues to expand with new applications, demands and opportunities like social media networks. The thought of a concerted PR strategy and execution can be overwhelming for a small business owner, but it doesn’t have to be. There are two primary elements of PR for a small business to engage upon – leveraging online and local offline outlets. The old world of face-to-face will continue to be critical in building your PR strategy and overall business, but let’s face it – the environment has changed, and you simply can’t ignore the power of the Web, particularly social networks. Proactively getting your business out in the community while leveraging the Web will ensure the success of your PR strategy. And, these tactics are not expensive; in fact, many present opportunities for free PR for your small business.

These PR strategy tips are designed for those small businesses that simply don’t have budget allocated toward hiring and retaining a communications expert. If you are a smaller company, hopefully you can take a few tips below to integrate PR into your small business to help build a brand and generate leads. Utilizing informative, valuable PR about your small business gives you the opportunity to influence people and lead them to your destination – your website, your store, your offering. Take advantage of what’s out there! Get online and get local – it’s that simple.

Growing Your PR Strategy

Grow Online

If you don’t have a website, you need to get one immediately. Today, you can get a starter site for free or within your communications packages from your voice and data provider. If it’s in the package, then it’s a no-brainer. If you have a website, then make sure it’s dynamic (video, blogs, and communities) to ensure your target audience comes back and builds a relationship with you and your brand. It’s a requirement in today’s online world; the days of stagnant sites are over. Then, once you have your interactive site, make sure you optimize your website and everything you say about your business online to ensure your potential customers are finding you online when they search. This is a key part of your online PR strategy. Don’t you search Google or Bing to find what you need a pinch? It’s called Search Engine Optimization (SEO) and it can be an affordable way to create additional PR for your small business — and it’s often found in your communications and IT packages. At the very least, getting a URL allows you to be FOUND online and that’s key. Google now provides maps when visitors are looking for a specific service in a specific area. By simply having an Internet address – you can be found online looking professional with a map to your location and link to your business, which is pretty cool.

The Wild World of Social Media

You have probably heard about “social media” and you may already be taking part. For many, however, the world of Twitter, Facebook, Linked In, blogs, vlogs and status updates may be a bit unsettling. Suffice it to say – these are powerful tools to help you carry out your PR strategy, especially when used properly to connect, communicate and yes, to sell.

As a small business, you can’t afford NOT to take part. It’s easy and affordable, so don’t waste anymore time. Of course, you do need to understand how best to engage before you jump in. Here are a few quick ways to start creating more PR for your small business:

1 – Create a Twitter profile and gain followers by “Tweeting” about your business, surrounding businesses and community topics that map back to your business. Build buzz about what you provide – can you Tweet special coupons? Can you give advice? Can you share relevant information to your community? Do you have an event you want to invite local prospects to? Twitter, an emerging PR strategy with an increasing audience, is a great way to quickly (140 characters or less) get a message out and position yourself as a leader. Remember, it’s not all about you; you must talk about the world around you to make an impact. Start off Tweeting about your business, but quickly begin integrating Tweets about your customers, your community, and your industry – and the most important part is to provide some kind of value or benefit in your tweets. Be respectable as well. And if you see someone comment about your business online (good or bad) – respond online for all to see. It’s a great way to show you are committed to your customers. The cost to you? It’s essentially free PR for your small business.

2 – Create free profiles on Linked In and Facebook. All you need for Linked In is a profile of you, and from there, you can create a group where you can share stories, news, and other PR about your small business. People can ping you for questions which positions you as an expert and, you can join interest groups that will help you track what other potential buyers in your community do, say and think. For Facebook, simply select “business” on the homepage to create a business “fan” page. Local residents, family and friends can then become “fans” of your company, which is an easy way to highlight the most recent PR about your small business. All you have to do is commit to posting news, updates, coupons, photos and other interactive content to get people engaged. Remember – provide a benefit – a reason for your “fans” to come back for more.

In addition to these PR strategy tips, there are local meet-up groups in every community that often originate from the Web, and then meet offline to have a real interactive discussion. Check out Meetup.com in your area to find one.

Confused about this new world of social media? Read Groundswell by two Forrester Research analysts, Charlene Li and Josh Bernoff. This book will set you straight and get you excited about the opportunities out there in terms of online PR for your small business.

Grow Local

Much like how consumers like to buy from locally grown farms, small businesses tend to buy from their peers – other small businesses. An effective PR strategy is all about supporting your local communities, and these days, that’s more important than ever. Keeping this in mind, focus on your community by generating PR for your small business at local events. Depending on your business, there are often specialty groups for different types of businesses such as professional service specialty groups. Often these groups gather monthly or quarterly to share best practices and to network. There are certainly general small business groups in your community such as your local Chamber that meet regularly as well. Beyond networking events, you can get ink for your business. Most Chambers have monthly newsletters or emails. Do you have something to say? Could you contribute twice a year with a special promotion to drive people to your business? Take advantage of these opportunities to fuel word-of-mouth marketing through PR for your small business. Hand out business cards, build relationships and follow-up. These opportunities are right outside your door.

Think grassroots.

Shake hands with other small businesses owners, refer each other and grow your business. To improve PR for your small business, think about what events are taking place this weekend where you could set up space, hand out collateral, serve up some hotdogs, and generate solid leads. Is there an art show or “Taste Of” type of event? Don’t take it all on yourself; partner with other local businesses right in your area to split costs and cross-sell to each other’s customers. A hand-shake goes a long way towards an effective PR strategy. Add a coupon and see the results. Most communities have annual events that bring hundreds/thousands of people – target those. In terms of PR for a small business, the best thing you can do is to connect directly to your audience by showing your personality and your value – get out there!

Leverage Local Media.

Another important element of your PR strategy involves local brand development, which means building relationships with local media. Yes, there is still benefit in reaching out to traditional media when it comes to PR for your small business. Take a moment to find out who your local reporters are and introduce yourself. Share with your new media contacts areas of expertise that you would be able to discuss if requested. If you create a relationship with your local media and have something compelling or contrarian to say, chances are they will call you when they need your input. Consider a quick email to your local reporters with an introduction, a quick reference of your expertise and what you could comment on. Being timely and relevant is critical to your PR strategy. Offer a cup of coffee. Those relationships can go a long way when you really want to make noise in the community. It’s important to know that if you want coverage and/or additional PR for your small business – you won’t get it with a cold pitch. You must: 1) – establish a relationship; 2) – have news to share that’s relevant, unique or at least different; and 3) – have a product/or service that is remarkable. These rules ring true for influential bloggers as well. For more on being remarkable, read Seth Godin’s Purple Cow – a great, quick read that will get you thinking about how to stand out from the rest to grow your business.

Blending Old and New: Building PR for a Small Business

Hopefully these PR strategy tips will help you build a brand for your small business and generate new and recurring business via PR. Communicating to customers and enabling them to communicate back to you is essential in today’s social world of media. However, what remains important today as it did 100 years ago is the face-to-face interaction. Nothing will replace it, so make sure you show your face and personality in the community. Coupling the old with the new will ensure a successful PR strategy for your small business.

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.