Home Based Business in the New Modern Age

A home based business is a small business that operates from the business owner’s home office, and is especially available for students, house wives, and retired persons. Nowadays, many people want freedom and more respect for work done, which is why they seek opportunities on the internet to earn. Like any other business, a home based business also needs some time to get established. Though there are many different types of home based business opportunities, choosing the right one and a diligent search is essential.The most commonly sought options include:Paid surveys:Survey companies pay people to answer surveys. There are many sites that pay for taking surveys and can be registered for free most of the time. After registration and email address verification, simple surveys are sent out.Based on the answers, if the person is qualified, the survey is filled out. The points or amount will be shown and payment can be claimed once it has reached the desired level. The payment is made generally by check or PayPal.Data Entry Jobs:There are various companies in the market, looking for people to do data entry jobs. Data entry work from home, offers you an opportunity from home and do not require any special expertise. It needs good typing speed.Once you are awarded a job, you have to agree upon the monetary issues with the service buyer for price and payment method. Once you receive the task, do your best to produce it accurately and submit it promptly.Online copy paste job:The Job involves posting of business ads on various web sites or other tasks that involve copying and pasting from one resource to other. This is similar to data entry and does not require any technical qualification or knowledge.Pay per click:A website will be created for those who join. The company sends advertisement of various companies and once an ad is opened the company pays a certain amount to the website owner.Writing:Writing is another job that can be done from the home. There are many companies that source their content requirements to people who have good English and can write on a regular basis and stick to deadlines.Affiliate Marketing:Affiliate Marketing is another opportunity that is gaining popularity. This also is an opportunity that is done from home. Without any huge investment, without any need for a physical office or warehousing of products or any other efforts related to a business, this unique opportunity offers a successful career.Those with a real job may quit in hopes of a better one, only to find they cannot get their original job. There are many sites that offer home based business opportunities. One must be careful if a site asks upfront for registration fees for training or actually giving them the job. Genuine websites do not charge before giving work. While not all are scams, few end up being legit. It’s important to check the jobs that are genuine and apply for the same. Honest efforts with prudence does get paid! So, if you have a system and internet at home, there is nothing to stop you.

Direct Sales – 4 Tips For Part-Timers to Expect From A Home Based Business

Direct Sales is the perfect home based business model for the part-timer. Selling clothing, housewares,beauty products, nutritional products, and other goods through in-home parties,one-on-one consultations, and online can be big business done on a part time basis. Last year, the 16.1 million direct sales representatives working in the United States generated $28.3 billion in revenue, according to the Direct Selling Association (DSA). With 90% of direct sellers working their home based business part-time. No wonder this is a very lucrative home business model for the moonlighter.So what can a newbie expect when looking for home business opportunities?Be Realistic about SalesTypically direct sales companies pay representatives commission on their own sales and on the sales of any reps they recruit (as well as the sales of their recruits’ recruits) — hence the nickname “multilevel marketing,” or “MLM.” As a result, a common complaint is that representatives, in their zeal to sign up new recruits, skew toward the hyperbolic, promising five- and six-figure revenues that multiply exponentially while you sleep. But that’s usually not the reality.Set Your Own HoursTo be fair, many people don’t enter the direct sales market looking for a full-time job. Instead, most are moonlighters who are looking for supplemental income and usually work their home business about 10-20 hours per week. This kind of flexibility allows more time with kids and family unlike getting a part-time job. Unlike a job where you go to work and always make the same amount of money, as a direct seller you can you create residual income and leverage the efforts of your sales team to work smarter, not harder.Researching Direct Sales OpportunitiesMake sure to research companies before investing any money. A few online resources can help you learn more about MLMs and help you stay clear of any scams. A few to get you started are the Direct Selling Association, Direct Selling 411, and World Federation of Direct Selling Associations. All these resources are great sources for U.S. direct selling practices and ethics,helpful FAQs, glossary,and reputable associations and accreditations for legitimate home based business opportunities.Weed Out the ScamsBe careful not all direct sales companies are honest. Pyramid schemes and other bogus opportunities are common. Watch out for opportunities that are exclusively dependent on recruiting people instead of selling products. Another warning sign is recruiters who are unwilling to share details of the compensation plan. Likewise, your initial investment should immediately yield something tangible, be it product samples or training and marketing materials. Getting started shouldn’t cost you thousands of dollars. Make sure the direct sales company has a buy-back policy, meaning that it should refund you for any unused or undamaged inventory you’ve purchased if you decide to quit.Perhaps the biggest misconception is that you can get rich in a matter of weeks or months without lifting a finger or selling anything in your home based business. Nothing could be further from the truth. Like any honest business, you have to work hard for each and every dollar you make.

A Few Home Based Business Tax Advantages

You already know how wonderful it can be to work from home, but do you realize how many home based business tax advantages there are? Here in the United States, many people operate home based businesses just to take advantage of the numerous tax deductions that can save them money.Claiming the use of your home in your business can give you some hefty deductions on your tax return. As with anything tax-related, you must meet certain requirements determined by the Internal Revenue Service. However, if you use one room or part of a room in your home specifically for your business, you can receive a significant home based business tax deduction. This can include portions of your utility bills specifically related to that area of your house as well as any relevant home improvements.The telephone and other office related services can provide you with a substantial home based business tax deduction. If you maintain a separate fixed phone line or cell phone specifically for your business, then all costs related to those phone lines can be tax deductible. However, if you use equipment or services in both personal and business environments, it is more difficult to establish a tax deduction. There are many benefits to running your business from home but you must meet some fairly strict requirements and maintain good records of your activities and individual deductions.Using your car in your business gives you the potential for another good home based business tax deduction. Of course, you must keep excellent records but you can deduct mileage and car-related expenses that you incur while conducting your business like tolls, gas and car repair fees.With any type of business, other incidental costs come up. You can also take deductions for purchases of items such as office supplies, postage, advertising materials and other costs. You can potentially deduct even more by hiring your friends and family members to work as employees for you. When you run your business from home it can benefit in many other ways but one of the most satisfying, is not having to participate in long commutes back and forth outside the home and you are able to spend more quality time with the ones you love at home.

Regardless If You Are Currently Working Or Out Of Work You Can Find The Best Home Based Business

If you are one of those who dream of having your own business but until now it has remained a dream, then perhaps this is the best time for you to revive that dream. Regardless of whether you are currently working, a student, a housewife, or even out of work, you can find the best home based business for you from the different options in the Internet kingdom and in the real world.To help you get on the right track, look at the following possibilities so you can choose the best home based business for you from the following suggestions. Keep in mind though that these businesses still function almost the same way as traditional businesses. You also have the option of doing these businesses either full-time or part-time depending on your convenience.Remember the flea markets during the 1980s? Now, with the advent of the Internet you can begin your small scale buy and sell business. There are currently many websites that allow you to auction off or sell directly your products to prospective buyers. What makes this one of the best home based business options is that you only need a computer, an Internet connection, and interesting products and you are already on your way to establishing your own business. Something that you need to consider with this enterprise is the payment and delivery system for your products.Website builder or consultant is another lucrative endeavor that you can do entirely from home. The only problem with this best home based business idea is that you would need a certain degree of technical expertise in creating, designing, and editing websites. If you lack the technical skills but full of creative ideas, then you can opt to be a website consultant instead.Joining affiliate programs is another great way for you to earn some extra money. This is one of the best home based business possibilities you take advantage of because it actually allows you to earn commissions for the rest of your life. Strictly work from home you do not actually sell products to people but rather get people to promote the products. The more people you get the higher your earnings will be.If you are looking for the best home based business that requires you almost no capital at all, you can actually act as a middleman for people who have businesses but don’t know how to promote it. Moreover you can actually market products which are made in your neighborhood.Tutoring is one of the best home based business ever because your clients come to you. You do not need to leave the house and you can easily promote it to your friends, neighbors, and family members who can all refer potential clients to you. There are many areas of tutoring that you can explore based on your interests or education.So no matter what your background is if you are really serious about earning some extra cash or doing it full-time you will always have a huge variety of choices to find the best home based business for you.

The Fate of Small Businesses on the Arrival of Big Brands

Running away when you find yourself in a competitive environment without a single effort or even a failed trial to see if you can make it can be termed the worst form of failure.What defines you as a success story, are those efforts you made on your way to success and not the success itself. Your ability to take the bull by the horn and make concerted efforts to make a mark when everything seems blurry is what the definition of yourself should be.Small and growing businesses tend to run into hiding when the “Big bull” (the big business) comes to town.Some go as far as closing up even before the arrival of these big businesses. They surrender at the mention of the arrival of big businesses not minding the fact that they (the small businesses) have existed for a very long time.This is as a result of the self-inflicting pain and fear that they bring upon themselves due to poor orientation and insufficient grooming. As a small business owner, you should be able to adapt and change with changing market conditions. When the market is shaky and unstable, your agility and stance must be firm and resolute.A proper mindset, a proper thinking pattern and a good success orientation and grounding would help you to adjust and face the competitive business world confidently and bravely too.It would not be much difficult for any small business that has been doing well in the past to retain its market despite the presence of big brands/businesses.All you need to do is believe that you can make it and retain your company’s image along with your value driven products and services.Nevertheless, a small business that have not been living up to expectation can still put up measures to weather the storm at the emergence of big businesses.You as the owner of a small and growing business should possess a reasonable certainty and resolution devoid of relying on weak hopes to take your business to the next level as you aim at achieving success. You do this by putting in place, a good marketing system that directs and helps you to achieve reasonable amounts of profits and success.The big mistake that most small and growing businesses make is that they are unsure of themselves and end up using excuses to cover up. They fail to realize that their business is meant for some people and those potential consumers would come looking for them if only they can distinguish themselves and offer something substantial and valuable.You have people that believe in you and in what you have to offer. Remind yourself of this always and you will conceive that driving force you need to propel you further for more profitable actions.When your mindset is constructed and built up with the thought that, “if anyone can do it, so can I”, all your actions and strategies would be based on energy and hard work aimed at hitting your target and reaching your goal.It is therefore left for you as a small business owner to decide to stay put even if you are surrounded by the big businesses and create products and services that would help you sustain and grow your business.Your products and services have to possess greater value to the customers.As a small business owner, you have an edge over big businesses because;Your operational costs are low.You have direct contacts with your customers.Due to your closeness to your customers, you can get to know what they think about your products and services and how you can serve them better.You can come up with a very dynamic and targeted marketing plans and systems that cut across your target audience.Some of these advantages are not always available to big businesses due to their administrative bottlenecks and wide (sometimes unnecessary) market coverage.Putting some of these ideas and recommendations in place will obviously give you an edge over those domineering big businesses you are competing against.

Home Based Business Advice

The prospect of leaving a regular 8-hour job in favor of a flexible home based business is so inviting that quite a number of people have been making the shift. Nonetheless, there are risks or pitfalls, which you should avoid, when contemplating the idea of putting up a home based business. It is imperative that you stay focused with your vision for your business and be organized in running the day to day operations.

On what kind of home based business to venture into, you are presented with a number of selections. Surveys are constantly being conducted with the reports released on what are the top-ranked or the best home based businesses. From among the cited businesses, choose the one that most interests you and where your strength lies. The ranking signifies only a business? viability and you may pick a business that may not be on the list but which you may think offers potential as a home based business.

To keep you in focus, try to have a business plan as well as a financial plan. By creating such plans to serve as your guide, you will be able to monitor your accomplishments and compare them with your targets. A financial plan could likewise assist you in tracking down your expenditures and keeping them at reasonable levels. While in the process of setting up your home based business, comply with all the legal requirements immediately in order that no legal impediment will disrupt your future operations. An organizer should help you keep organized for your daily schedules and activities. As much as possible, maintain a paperless office and print only when necessary. Keeping your files in your computer system means less paper works for you. However, if unavoidable, your important files will be more accessible and organized if you place them in the appropriate filing cabinets.

Setting up a home based business is certainly a whole new experience for you but keeping it organized and staying focused will help you operate it better.

Small Business Loan Update – Stimulus Bill Helps Bailout Businesses If They Cannot Pay Loans

As we continue to sift dutifully through the over 1,000 pages of the stimulus bill (American Recovery and Reinvestment Act of 2009), there is one provision that is not getting much attention, but could be very helpful to small businesses. If you are a small business and have received an SBA loan from your local banker, but are having trouble making payments, you can get a “stabilization loan”. That’s right; finally some bailout money goes into the hands of the small business owner, instead of going down the proverbial deep hole of the stock market or large banks. But don’t get too excited. It is limited to very specific instances and is not available for vast majority of business owners.

There are some news articles that boldly claim the SBA will now provide relief if you have an existing business loan and are having trouble making the payments. This is not a true statement and needs to be clarified. As seen in more detail in this article, this is wrong because it applies to troubled loans made in the future, not existing ones.

Here is how it works. Assume you were one of the lucky few that find a bank to make a SBA loan. You proceed on your merry way but run into tough economic times and find it hard to repay. Remember these are not conventional loans but loans from an SBA licensed lender that are guaranteed for default by the U.S. government through the SBA (depending upon the loan, between 50% and 90%). Under the new stimulus bill, the SBA might come to your rescue. You will be able to get a new loan which will pay-off the existing balance on extremely favorable terms, buying more time to revitalize your business and get back in the saddle. Sound too good to be true? Well, you be the judge. Here are some of the features:

1. Does not apply to SBA loans taken out before the stimulus bill. As to non-SBA loans, they can be before or after the bill’s enactment.

2. Does it apply to SBA guaranteed loans or non-SBA conventional loans as well? We don’t know for sure. This statute simply says it applies to a “small business concern that meets the eligibility standards and section 7(a) of the Small Business Act” (Section 506 (c) of the new Act). That contains pages and pages of requirements which could apply to both types of loans. Based on some of the preliminary reports from the SBA, it appears it applies to both SBA and non-SBA loans.

3. These monies are subject to availability in the funding of Congress. Some think the way we are going with our Federal bailout, we are going be out of money before the economy we are trying to save.

4. You don’t get these monies unless you are a viable business. Boy, you can drive a truck through that phrase. Our friends at the SBA will determine if you are “viable” (imagine how inferior you will be when you have to tell your friends your business was determined by the Federal government to be “non-viable” and on life support).

5. You have to be suffering “immediate financial hardship”. So much for holding out making payments because you’d rather use the money for other expansion needs. How many months you have to be delinquent, or how close your foot is to the banana peel of complete business failure, is anyone’s guess.

6. It is not certain, and commentators disagree, as to whether the Federal government through the SBA will make the loan from taxpayers’ dollars or by private SBA licensed banks. In my opinion it is the latter. It carries a 100% SBA guarantee and I would make no sense if the government itself was making the loan.

7. The loan cannot exceed $35,000. Presumably the new loan will be “taking out” or refinancing the entire balance on the old one. So if you had a $100,000 loan that you have been paying on time for several years but now have a balance of $35,000 and are in trouble, boy do we have a program for you. Or you might have a smaller $15,000 loan and after a short time need help. The law does not say you have to wait any particular period of time so I guess you could be in default after the first couple of months.

8. You can use it to make up no more than six months of monthly delinquencies.

9. The loan will be for a maximum term of five years.

10. The borrower will pay absolutely no interest for the duration of the loan. Interest can be charged, but it will be subsidized by the Federal government.

11. Here’s the great part. If you get one of these loans, you don’t have to make any payments for the first year.

12. There are absolutely no upfront fees allowed. Getting such a loan is 100% free (of course you have to pay principal and interest after the one year moratorium).

13. The SBA will decide whether or not collateral is required. In other words, if you have to put liens on your property or residence. My guess is they will lax as to this requirement.

14. You can get these loans until September 30, 2010.

15. Because this is emergency legislation, within 15 days after signing the bill, the SBA has to come up with regulations.

Here is a summary of the actual legislative language if you are having trouble getting to sleep:

SEC. 506. BUSINESS STABILIZATION PROGRAM. (a) IN GENERAL- Subject to the availability of appropriations, the Administrator of the Small Business Administration shall carry out a program to provide loans on a deferred basis to viable (as such term is determined pursuant to regulation by the Administrator of the Small Business Administration) small business concerns that have a qualifying small business loan and are experiencing immediate financial hardship.

(b) ELIGIBLE BORROWER- A small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).

(c) QUALIFYING SMALL BUSINESS LOAN- A loan made to a small business concern that meets the eligibility standards in section 7(a) of the Small Business Act (15 U.S.C. 636(a)) but shall not include loans guarantees (or loan guarantee commitments made) by the Administrator prior to the date of enactment of this Act.

(d) LOAN SIZE- Loans guaranteed under this section may not exceed $35,000.

(e) PURPOSE- Loans guaranteed under this program shall be used to make periodic payment of principal and interest, either in full or in part, on an existing qualifying small business loan for a period of time not to exceed 6 months.

(f) LOAN TERMS- Loans made under this section shall:

(1) carry a 100 percent guaranty; and

(2) have interest fully subsidized for the period of repayment.

(g) REPAYMENT- Repayment for loans made under this section shall–

(1) be amortized over a period of time not to exceed 5 years; and

(2) not begin until 12 months after the final disbursement of funds is made.

(h) COLLATERAL- The Administrator of the Small Business Administration may accept any available collateral, including subordinated liens, to secure loans made under this section.

(i) FEES- The Administrator of the Small Business Administration is prohibited from charging any processing fees, origination fees, application fees, points, brokerage fees, bonus points, prepayment penalties, and other fees that could be charged to a loan applicant for loans under this section.

(j) SUNSET- The Administrator of the Small Business Administration shall not issue loan guarantees under this section after September 30, 2010.

(k) EMERGENCY RULEMAKING AUTHORITY- The Administrator of the Small Business Administration shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of title 5, United States Code shall not apply to the promulgation of such regulations.

The real question is whether a private bank will loan under this program. Unfortunately, few will do so because the statute very clearly states that no fees whatsoever can be charged, and how can a bank make any money if they loan under those circumstances. Sure, they might make money in the secondary market, but that is dried up, so they basically are asked to make a loan out of the goodness of their heart. On a other hand, it carries a first ever 100% government guarantee so the bank’s know they will be receiving interest and will have no possibility of losing a single dime. Maybe this will work after all.

But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn’t even be in default at that point. It would be in the hands of the secondary market investor.

So is this good or bad for small businesses? Frankly, it’s good to see that some bailout money is working its way toward small businesses, but most of them would rather have a loan in the first place, as opposed help when in default. Unfortunately, this will have a limited application.

Wouldn’t it be better if we simply expanded our small business programs so more businesses could get loans? How about the SBA creating a secondary market for small business loans? I have a novel idea: for the moment forget about defaults, and concentrate on making business loans available to start-ups or existing businesses wanting to expand.

How about having a program that can pay off high interest credit card balances? There is hardly a business out there that has not been financing themselves lately through credit cards, simply because banks are not making loans. It is not unusual for people to have $50,000 plus on their credit cards, just to stay afloat. Talk about saving high interest. You can imagine how much cash flow this would give a small business.

We should applaud Congress for doing their best under short notice to come up with this plan. Sure this is a form of welcome bailout for small businesses, but I believe it misses the mark as to the majority of the 27 million business owners that are simply looking for a loan they can repay, as opposed to a handout.

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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