Starting Your Own Home Based Business

Whether you are thinking of leaving your current job and starting your own home based business or you lost a job due to downsizing or other personal reasons, there are a few things you should research.First of all, you want a home based business that will make you money. This is the bottom line. You do not want to start up a home based business only to fail.You need to look at what types of items can make you money. You need a home based business that has been working for people and is currently working for other people with regards to making money. You do not want to start up a product that has no use to other people. Even if you think it is a good idea, make sure you do the research to see if it is something others will buy. You want a product that is wanted and needed by many people so that you will succeed.When starting your own business you should have an office in your home. If you have a spare room, you should make it your home office. You should set it up so you are organized. Make sure you have a computer desk, computer with all of the items such as a monitor, printer, copy machine and fax machine. Many times you can find an inexpensive printer/copier/fax machine all in one. Make sure you have pens, pencils, a calendar and a file cabinet to stay organized.You will want to make sure you have a comfortable chair for your computer desk. You want your desk set up ergonomically correct for yourself.When you separate your home based business into another room, your family should know that when you are in the room you are working. Your family should know that when you are in the office that you should not be bothered unless it is extremely important.Once you get your office set up, you will want a program that will help you make money. You will love having the financial freedom once your business picks up.Make sure the program you choose is easy to learn, has training as well as ongoing support such as live webinars so your home based business succeeds.

Fortitude Equals Success In Your Home Based Business

When I started my home based business 2 years ago, I thought that my computer skills, copy writing ability and marketing experience would be all I would need to be an instant online success. Although, these skills surely helped in this process, I would have never imagined that the road ahead would be very long indeed. Now, you’re probably wondering where I am going with this, so I will get to the point. What I would like to talk to you about is how having fortitude equals success in your home based business.In going through the process that was required to build my successful home based business online; I have realized that it is no small wonder why so many people fail in their quest to fulfill their dream. Of all the things that it takes to build success, I would have to say having fortitude is the most important. This is something that no one can give to you, and without it, it is near impossible to achieve massive results.Aside from that fact, I have also discovered that in order to have longevity in this business, you have to build trust with anyone that may look at your primary offer. Before they have a level of comfort necessary to join your organization, you must sell yourself by building a level of trust through presenting real value over time. After-all, people do not join companies or products; they join people. Mastering fortitude is a very essential foundation to build a successful home based business upon. Now that I have made an impression about the importance of fortitude, I want to demonstrate my willingness to build trust with you at this very moment.As I stated above, there are certain internal things that you will have to do on your own. Having said that, there is a whole host of items I can share, free of cost, that will help you shortcut this process. The course, the tools, and the knowledge that you will need to facilitate your progression I would gladly share with anyone. You see, the cornerstone of any successful home based business is in building an organization. This is what separates the serious players from the overnight sensations and will lend the kind of longevity that is the key to residual income.Each time that I help another individual produce a desired result, I have in effect duplicated my own results. By helping you build what I have already done, I build the kind of trust necessary for you to join my organization. In the same fashion, you will need to construct your home based business in the same way, thus paying it forward, and building a team that will grow the size and scale of your results.On the internet you can find all the things you would need to get started building a successful home based business today, and I will encourage you to explore all the opportunities that are out there. Although, having been where you are now, I found that there are true power in numbers, and the most successful people have put together solid business organizations that have one common goal in mind; SUCCESS!When we learn to trust in each other, and have others to mastermind with, we have the ability to build a successful team that will be around for the long haul. If you have the desire to build a successful home based business, are teachable, and have the fortitude gut it out, we would like to talk to you.

Is a Home Based Business Really Right For You?

Now is one of the most exciting times in history to start a home based business. The economic climate has driven thousands of Americans just like you to leave the corporate workplace in search of income stability, and this exodus has led to a significant increase in both the self-employed and the home based business market.Work from home opportunities are vast, and the number of product offerings available for new business owners to choose from has increased dramatically over the past several years. In addition, many at home businesses are predicated upon the owners’ own talents or skills, such a content writers or computer graphics artists. Home based businesses, of course, may be built upon many different product platforms, and while information-based product offerings are among the fastest growing segments, there are numerous products that a new business owner working from home can select from when starting up a new business.Of course, one of the critical things to consider is whether you are truly ready to start a home based business. The key to determining whether your business will ultimately be a smashing (and profitable!) success is to look critically at your own work style and determine whether self employment and working from home is really right for you. When making this key assessment, consider the following:-Do You Enjoy Constant Social Interaction? Would You Feel Isolated Working From Home?
-Are You Good at Time Management & Planning?
-Can You Work Autonomously, With Little or No Direction?
-Are You Self-Motivated? Can You Work Independently?
-Do You Have an Entrepreneurial Spirit? Do You Have Persistence, Enthusiasm & Discipline?
-Is Your Home Equipped to Sustain a Home Based Business? (Office/Dedicated Phone & Internet)When a home based business fails, it’s often due to factors within the owner’s control, such as the individual’s self-motivation or inability to effectively use time management skills. Therefore, it’s crucial that you take an honest assessment of your skill set and motivation to determine whether going out on your own is really right for you. For those who enjoy working from home independently, however, a home base business can offer flexibility, stability and income potential unparalleled by traditional employment, particularly in today’s troubled economy. For more information visit http://www.thehomebasedbusinessreview.com

Single Moms Can Work From Home! 3 Tips to Starting a Women’s Home Based Business

Single moms working toward starting their own work from home businesses have many obstacles to overcome. Starting a new work at home opportunity is never easy for anybody and the sacrifice required is massive. This is not to say that starting a woman’s home based business is an impossible goal. The best thing to do is take the steps necessary to ensure a long-lasting, profitable business. Take a look at these tips to get the most out of your single mom work from home business.1) Program selection – When you are ready to start your woman’s home based business, it is important to select a business or program with a consumable product. This ensures the longevity of your business. Fad products are only flashes in the pan. What you should be searching for is a business program or product that will stand the test of time. Devise a solid plan for your home based business and make sure that it is flexible enough to weather these rapidly changing economic times.Many times people believe that selecting a product or program that has been around for a long time will ensure their business’s success. Unfortunately, this is just not the case. You success will depend upon having a solid product and being able to adapt quickly to market trends. Flexibility along with the proper training will be the key to keeping you in business.2) Organize your office space – Even though your business might be home based, you will still need a dedicated area to work. Only after your single mom home based business has made its first million will you likely be able to make take care of business from bed! When you are planning to organize your woman’s home based business, plan and secure a reasonable amount of workspace. This will allow for you to be more organized in the long run. When you are properly organized, you can ensure that your business and personal affairs do not conflict with each other.3) Network marketing training – Starting any business can take a lot of time and effort. The best way to minimize this is to try to align yourself with productive, successful people. Network marketing training is not only for promoting a specific product, business style or company. The techniques that have been used in the network marketing business model have generated income for thousands of people for many generations. They can provide resources and information that can give you the best maximum leverage possible. Many a woman’s home based business has gone quickly out of business without the proper business training. It is imperative that you secure the best training possible in order to excel in your home based business.

How NOT to be a Small Business Failure Statistic

There were about 146,000 business startups a year, and an average of 12,000 business bankruptcies per year from 1994 to 2004 in Canada. A 2004 Statistics Canada study on small business failure rates “Key Small Business Statistics – January 2005: How Long Do Small Businesses Survive?” found that the first few years were critical. While almost three quarters of small business startups survive the first year, less than one third of micro companies (less than five employees) were in business after five years.These statistics by themselves may be of little value to you directly. We know how many small businesses survive and for how long, but it’s far more important to know why some survive and others do not. There are a lot of studies on small business failure. Searching “reasons for small business failure” with quotations on Google will give you almost 700 results (about 38 million without!). “Why small businesses fail” will give you almost a thousand.The 1997 study by Statistics Canada “Failing Concerns: Business Bankruptcies in Canada found major internal factors of small business failure was management deficiency, financial management problems and poor marketing.The Small Business Administration study “Financial Difficulties of Small Businesses and Reasons for Their Failure” in 1998 found several causes of small business bankruptcy: outside business conditions (38.5%), financing (28%), inside business conditions (27.1%), taxes (20%), disputes (18.8%), personal calamities and other (32.9%)There is a wealth of information on this subject, but what are the common factors? There are four basic areas:External factorsExternal factors include new competition, your major client moving out of town, poor weather if you’re a seasonal business, or economic downturns. They’re often largely out of our control, and may be unique to your particular company, but there are often ways to mitigate them. For example, if you have a seasonal business, such as a landscaping company (at least up here in the cold north it’s seasonal) you could buy a bobcat to provide income during your off-season with snow removal. The bottom line is, have a contingency plan for external factors that could have a negative impact on your small business success.Lack of managementBig companies have the luxury of being able to hire several people to get all the jobs done that need to be done, but chances are you’re going to have to do it all yourself, at least for awhile. That means you’re not only going to have to develop your product or service, you’re also going to have to make financial, accounting, legal, marketing, human resources, and purchasing decisions.You may do some of these tasks very well, but it’s unlikely that you do all these tasks well, and even if you do, you might want to contact a lawyer and an accountant at the very least. And, research, research, and research some more, and when you’re done researching, find an expert or two bounce ideas off and give you solid advice.Lack of planningSmall businesses often fail because of lack of planning. Let me make a bold statement: the single-most vital part of your business success is your business plan. Why? Simply put, your business plan specifically and concretely lists your goals for the next few years. It spells out, step by step, how you’re going to meet those goals, and gives you something to measure your performance against at the end of your business year.Finally, a complete business plan helps you get financing and includes a marketing plan, which addresses lack of marketing and insufficient financing, two more often cited reasons for small business failure.I have one more thing to say about business plans. It does very little good to write a business plan, put it in a drawer and never look at it again. That same 1997 Statistics Canada study we talked about earlier found that successful small business owners refer to and revise their business plans often.Lack of marketingMost small businesses seem to think it takes a lot of money to market their product or service effectively. That’s simply not true. There are many ways to market inexpensively. You could use direct mail marketing which is as cheap as a stamp, or email marketing, which costs nothing. The point is, you need to get your product or service “out there” somehow. You may have the best product or service out there, something completely unique from anything else, but what good does that do if nobody knows about it?So there you have it–my thoughts on the main reasons why small businesses fail, and how you can avoid becoming a small business failure statistic by developing a contingency plan, consulting with experts, and developing and using a business and marketing plan.If you are thinking of starting a small business, I’m most certainly not trying to discourage you. I sincerely believe being in business for yourself may possibly be the most rewarding career there is, but a little knowledge can go a long way towards arming you against small business failure.

How to Easily Generate Home Based Business Leads

As the current economic climate becomes more unstable, many are moving towards home based business opportunities. It is critical that these individuals learn to effectively generate home based business leads. The difference between thriving or dying in today’s competitive market hinges on the ability to consistently generate leads for the business. While advertising and marketing for a small business may share some similarities to that of a major corporation, the methods and strategies used are very different.

A home business owner should start with a thorough knowledge of their target market. For example, an understanding of the primary customer base would be critical for a cake decorating business. This target market might include: engaged couples, parents with young children and civic organizations who conduct regular fund raising dinners. A thorough understanding of the target market will help guide the rest of the lead generation process.

Determining where to connect with the target market is the next consideration of the home based business owner. In the example of the cake decorator, let’s assume the business owner has decided to target the wedding cake segment of the market. The business owner would look for points of connection where engaged couples would be researching wedding preparations. Some of these connecting points might include tuxedo shops, wedding dress shops, limousine services, DJ services and local churches.

The next element in the lead generation strategy is a creation of awareness. This would be accomplished as the cake decorating business is introduced to key people at each of the aforementioned connecting points, as a resource for couples planning their weddings. An offer to cross-promote the business of the other would be appropriate. As part of this cross promotion strategy, it would be appropriate to leave brochures, business cards and even photographs of cakes to give a sampling of the home business owner’s work. To put some real power to the home based business lead generation process, the owner would actually take a sample of one of their cakes as a “gift” for each of their connecting partners. Creating synergy with other business owners is the key to making this strategy successful. When a strong impression is made, these connecting partners essentially become a volunteer sales force to the target market on behalf of the home based business owner.

Offering exceptional value is critical for generating leads for your home based business. A small brochure on the top 10 mistakes to avoid when planning your wedding would be of great value to the target market. Distributing this brochure at the connecting points and including a tagline, showing the information being provided courtesy of the home based cake decorating business. Creates value and personal branding for the home based business.

The strategies mentioned above involve localized, face to face marketing techniques. Consider a variation on the previous strategies when dealing with a business that is using the internet for generating home based business leads. For example, a home based business that sells cleaning products would utilize the same principles for identifying a target market. In this example the business owner has chosen to those looking for environmentally friendly cleaning products.

The business owner would begin by finding online connecting points. A great starting place would be community groups that deal with “green” living. As the business owner interacts in the community, they would include their website in their forum signature. The business owner would become part of the life of the community by making regular informative posts that discuss the benefits of using organic cleaning products. Additionally, the business owner would want to create a small report listing 5 things to look for when choosing environmentally friendly cleaning products. The report would be offered freely to anyone interested in receiving it. This online report would have a tagline indicating that is being provided courtesy of the cleaning products business. Those participating in forum discussions with the business owner and those requesting the free report are all examples of home based business leads that have been generated from taking a few small steps.

Relationship building is the key to generating home based business leads in your marketing efforts. These strategies can be implemented for both online and offline home based businesses.

Advertising Using Airplane Banners Is Innovative

When people usually think of advertisements, they think of the mundane advertisements that come up between your favorite soap opera completely ruining your mood. The ever repeated advertisements are not a way of getting people to buy your products anymore; it is more annoying for the viewer than anything else. Companies keep thinking of newer and more innovative ways to advertise, to make more buyers buy their products. To be honest, in today’s corporate jungle you could not actually blame them for wanting to sell their products. But the idea of advertisements to the common person is a severe turn off. There are not many advertisements, these days that actually catch the eye of a person and makes them want to buy a product. Product placement may be one thing but so is advertisement placement.

There are so many different places where advertisements can be placed, yet companies choose the most mundane methods of advertising. If you are looking for a way to spice things up in the advertising world, a great way to do so is through airplane advertising. Airplane advertising is done with the help of a banner. The banner is stuck to the back of the airplane and is made to flow with the wind. In this way, the advertisement is readable to everyone under it.

So, why do airplane banners work better than other forms of advertising? For one thing, billboard advertisements have become mundane. There are so many of them that people are becoming less and less interested in what they say. People drive past billboards all the time but they are not very responsive to them and here is the reason, when you see so much of something you begin to ignore it. So even if you put up an extraordinary advertisement on a billboard, chances are it will mostly go ignored. Not everyone will ignore it, but most of the people who spend money on products are in offices between 9 – 5. Honestly, would you pay more attention on a billboard when you are on your way home from work?

So here is why airplane banners are an amazing way to advertise. When you are out doors and you hear that a plane is close by, you instinctively look up. It is human nature, almost everyone does it. When you look up and see an airplane which has a banner, you will be intrigued by it and want to read what it says. This is because it is something out of the ordinary. As it is something you do not see every day, you will pay more attention to it without even realizing you are doing so. And as this is something you do not see every day, you are more likely to remember it.

Another reason why airplane banners are a good way of advertising is because when one person looks up at the sky, a person nearby will want to see what they are looking at and instinctively look too. This creates a kind of domino effect where everyone starts to look at the sky one by one and everyone reads the advertisement. Airplane banners create a positive change from the mundane and done-to-death forms of advertising. The messages in these advertisements are usually short ranging from 40 – 50 characters including spaces, but getting the message across is very effective. So next time you are wondering how to get the attention of the large crowd at the beach, why not try airplane banners instead of placing advertisements on billboards and on TV where people will just mute them? Make a difference in advertising by trying out airplane banners.

The Finer Points of Internet Auctions

WHAT IS A PENNY AUCTION?

Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.

The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.

The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.

The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.

HOW PENNY AUCTIONS WORK!

The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.

There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.

Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.

HOW TO WIN!

Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.

The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.

The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.

The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.

HOW TO AVOID SCAM SITES!

Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.

Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.

Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.

CONCLUSION!

New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.

There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.

It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.


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