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.

MLM Home Based Business – Why There’s No Better Time Frame Than Today To Jump In

With the current economic crisis opting the long path to recovery, quite a few folks are considering an MLM home based business to restore a lost source of income, or supplement their current pay check. And yet, if you’re smart, now is the time to explore an MLM home based business to create a fortune, not just make a few extra bucks.

Now don’t get me wrong, the network marketing industry didn’t go unscathed during this financial crisis. Nonetheless, if you stumble upon the ideal MLM home based business program, you are going to be perched on a gold mine. I mean let’s be honest, folks are eager to better their financial situation. Today, folks are going to be open to opportunities, as long as it is a good fit for them. Hence, let’s go over what is an MLM home based business and in what ways do you cash in on possible opportunities.

MLM, which is short for multi-level marketing, is also commonly known as network marketing. The appeal of an MLM home based business is really quite simple. No other business model empowers an ordinary person to create wealth and prosperity like network marketing. This is true despite age, race, technical background or business knowledge (more on that and a few caveats in a bit).

The reason an MLM home based business can be huge for anyone is because companies that employ this distribution model trade marketing dollars in exchange of your word of mouth advertising. In other words, instead of having to pay huge amounts of money every year to the advertising industry, they count on their customers to spread the word instead. And trust me. I built a great little advertising career during the last 10 years. I’ve worked with clients who invest well over $100 million per year on advertising. Hence, these network marketing companies are saving some pretty good coin.

So what do network marketing companies do with those savings? They pass them on to you, the customer-turned-business-associate. When you refer customers to your MLM home based business, you get paid commissions and bonuses for helping the company market and distribute its product. In essence, you are part of their marketing arm. The more customers and company associates you recruit, the larger your commissions, the greater your bonuses and incentives, and the bigger your paycheck.

What really makes an MLM home based business worth a strong look

Nonetheless the real appeal of an MLM home based business can be defined in two words: residual income. This is also known as passive income or leveraged income. Basically, what this means is that as you recruit individuals into your MLM home based business, you eventually begin to earn income from their efforts. In time, your revenue will be completely independent of your own personal efforts. This is the allure of the business opportunity. The ability for absolutely anyone to create a considerable walk-away residual income and retire rich in quite a short period of time.

Of course, if it sounds too good to be true, then it must be, right? Well, not really the situation here. And yet, 97% of network marketers fall short with their MLM home based business. Though not because the network marketing industry is a sham. Rather, this is because the MLM industry promotes a marketing and prospecting model that did the trick well in the 1970′s and 1990′s, but is not relevant in the internet age. Allow me to explain.

The secret to MLM home based business success

Rewards in any MLM home based business is without question a direct result of a specific thing, and one thing only: your skill to brand and market yourself as a leader. Now, a few of you are thinking “I’m no leadership material.” But you would be inaccurate in that evaluation. Becoming a leader is easier than you think and you don’t have to be an extraordinary speaker, or a business expert to accomplish that status. Not in the modern day of the internet. The thing you do need is a solid wish to become familiar with a few simple tools and skills, plus a strong resolve to take significant action.

The internet now enables anyone to learn how to market their MLM home based business the correct way. Gone are the days of needing to chase close friends and family simply to plead with them to view your sales presentation. Gone are the days of walking around the malls to hand out brochures.

Today, you can leverage any number of incredibly effective, cheap–if not free–internet marketing tools to promote your business. Generating countless prospects each week is dead simple if you have even a small budget for advertisements. And if cash is tight, you can still produce tons of free targeted leads for your MLM home based business using free tools and strategies. It will just take longer. Definitely not for that lazy or make money fast opportunity seeker.

One important thing that has not changed in the MLM home based business environment is the incredible importance of aligning yourself with a capable counselor. The internet is beginning to change lives literally overnight for people who aren’t shy and dive in. But it’s just like a sea, never still and always churning and changing. If you do not recognize how to interpret the scientifically and time-tested formula that helps average people make six-and-seven-figure incomes overnight, you will end up lost at sea. This is truly critical.

If you would like to generate extra money or just flat out get filthy rich, do what I did. Find an MLM home based business opportunity which has a one-of-a-kind and high-demand product. For me, it was gold and silver. Not a bad idea in this dreadful economic climate.

Keep away from products that could possibly be considered a luxury. Nothing against the fantastic health beverages and super-vitamin MLM home based businesses in the industry, but you are going to have trouble marketing $40 fruit juice nowadays. Stick to goods and services that folks need to have and already use, and you’ll probably experience an easier time of it.

What to do when you find the right MLM home based business opportunity

Once you have selected a really good MLM home based business opportunity, meet with folks in that company who understand how to market via the internet. Traditional marketing is still valid and effective, however, your rewards ratio drastically improves when you can find out how to market on the internet. Learn all you can regarding attraction marketing as explained by Mike Dillard in Magnetic Sponsoring. Assess if this is a path you are comfortable with and be aware that you have the innate power to obtain anything you set out to do. Then get busy. Real busy.

Make use of your mentor. Ask him for a blueprint. He or she should have one if they understand what they are doing. They will give you the insider tips and instruments of the business. They will teach you how to use them. And when you stay disciplined, you simply will not fall short. Half a year ago, I did not know the very first thing on how to rank well on the very first page of Google. I can do it with my eyes closed today thanks to the golden nuggets handed down by my mentors. I generate 85% of my personal leads completely for free. And I Also generate money from my principal MLM home based business in addition to 12 other streams of affiliate income. So in case I have not been clear, allow me to stress yet again: the time has come to get involved with the right MLM home based business–believe me. Decide today that you will make the investment in time to learn some new skills and you will succeed.

After almost a decade working as an accomplished advertising professional, Camilo Machado became fascinated with internet marketing and attraction marketing. He now works from home and enjoys coaching others how to leverage technology to build thriving home-based businesses online.

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.


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