Want an Online Home-Based Business Opportunity? Five Solid Considerations Before You Join

So you want an online home-based business opportunity?Many people dream of working from home? Because of that, they can easily fall prey to some opportunities that really are not so good.Those who are successful at internet marketing often tell of their start-up mistakes. They do point out that failure is not always bad–that is, if you learn from each failure. On the other hand, many of them also talk about how they wasted a lot of money in the beginning of their search for the right online home-based business opportunity.We can profit from our own mistakes, but we also can learn from the mistakes of others.Those who are successful with such ventures have learned a secret.What is that secret?Here it is: They use five solid considerations to evaluate any online home-based business opportunity.Look at those five considerations, and learn to add your own important considerations when you evaluate business opportunities:1. Is the company you are going to be dealing with ethical? Do they make outrageous claims of building wealth overnight? While it may be possible for a person to stumble upon something highly successful, view such claims with a great deal of scrutiny. Look at the documentation about income. View the testimonials. See if people in forums defend the legitimacy of the company.A product that makes modest or realistic-sounding claims may well be ethical. Just look closely at what they are asking you to do.Some tested and legitimate ways of making money online include PPC (pay-per-click) marketing. (Make sure you get good training, though, if you are considering going this route). Legitimate opportunities also include article marketing, becoming an affiliate for an existing company, and so forth.If the owners of the product seem to be asking you to do something shady, run quickly!2. What kinds of commissions do the products pay? if you are going to be doing affiliate marketing, of course you want to know how much you will make per sale. (Always promote products you believe in.)If you develop your own product, you will want to know how you should price it.3. What kind of training is offered? Does the business have an action plan? Does it have a forum area where others can help you? Will the owners be available to help when needed?4. Does the opportunity offer a money-back guarantee? If so, you can try it out before being stuck with something you really do not want.5. Does the online home-based business opportunity accept safe methods of payment? Secure websites will have “https” in their urls. Most legitimate businesses will ask for payment through such sources as PayPal, credit cards, or debit cards.So, if you are interested in pursuing a legitimate online home-based business opportunity, use these five solid considerations when making your decision.

Financial Recovery – Solution No 5 – Home Based Business

How do we achieve the American Dream these days? With the present economic crisis many of us are seeking alternative solutions since the corporate ladder is too often “leaning against the wrong wall”. We are not only looking for the solution to our financial problems but also a way to take control over our lives.We are often burdened with debt, worried about the future and basically just trying to get ahead. For many of us the solution is a Home Based Business.There are many types of home businesses available. The key is to find one that you enjoy and are passionate about. From crafting, to bow making, to network marketing, home businesses offer attractive benefits part-time or full-time. A Home Based Business can offer benefits that far outweigh the benefits of a conventional job.1. Spending more time with family
Self-employment allows you the opportunity to set your own schedule and work smarter instead of just long hours, giving you the opportunity to take back ownership of your most valuable assets…your time. Choosing your vacation time, attending the children’s special school events and working your own hours are just some of the benefits of owing your home business.2. Becoming debt free
It is sad, but most of us spend more than we earn. Charging an average of $8,400 in credit card debt and paying upwards of 18% interest we find ourselves hopelessly in debt with no seemingly way out. A small side business earning an extra $200 – $300 a month can supplement the paycheck and relieve debt burdens.3. Enjoy Tax Benefits
Congress recognizes small business owners as building a stable base for our national economy and has passed several tax laws rewarding such individuals. There are many tax benefits for the home business owner to take advantage of. Home office renovation, home office security, business travel, and education are just a few home office deductions that are available for the small business owner.4. Having extra spending money
With supplemental income, and getting out of debt, the home business owner can enjoy having money to play with and enjoy immediate comforts that would otherwise be unavailable. Now buying that nice car, or going on that family vacation is in reach and spending extra money on the kids or family members is a joy. The freedom that having extra spending money offers, relieves stress and adds to life’s enjoyments.5. Saving for Retirement
When financial stress is prevalent, saving for retirement is something in the future and often we are not prepared for it when it arrives. Maintaining the lifestyle we enjoy in our younger years is difficult to do if we are not prepared for the future. A home business can provide residual income that will not only allow us to maintain our lifestyle but also allow us to leave a legacy for our children and grand-children.6. Being a stay at home mom
Two-income households are becoming necessary these days and there are more single parents carrying the financial burden of raising children. A home business allows moms to stay home with their children and still maintain financial security for their families.If you are ready to leave the rat race and take control of your financial future, you just may want to join the millions of Americans who have decided to take control of their future by starting their own home-based business. My home-based business is fun, exciting and gives me so much pleasure. I wouldn’t think of working for anyone else. After all, I have a great boss! Me!

Home Based Business That Returns a Double Blessing – Your “Why”

A business that you can work from home that will provide you with financial freedom and time to do what you want, that is what we are looking for. Finding one that fills your “why” is most important. What is your “why”? “Why” do you want to own a business you can work from home?Given the present economy it is not unusual to look for a home based business that you can work part-time to supplement your income or while searching the job market for new employment. Finding work from home businesses is not hard to do, the internet is flooded with all kinds to choice from. Some are good legitimate home based businesses and some are get rich quick scams. Common sense says getting something for nothing is too good to be true, and a claim to make tons of money with little effort is most likely a scam of some sort, so be careful.Before selecting a home business it is necessary to discover your “why”. The most important reason (your why) to start working for yourself at home should not be to “make money!” If that is your reason be prepared to fail like over 90% of home based businesses do. Your “why” must be something you are passionate about. It can be to change lives and help people, or make a positive difference in some-ones life, but it should never be about making money. With the right business, money will be the byproduct of doing what you really want, who you really are, what you really care about. Your “why” must be a desire or passion you have that matters much more to you than money. If you really want to work from home and run your own home based business and have it be successful, you need to find a legitimate home based business that will fill your “why”. If you work on something you enjoy doing, the money will follow.I have been determined to find a home based business that will fill my passion in life, my “why”, one where I can work at something that I really enjoy. Something that is very rewarding, something that follows my spiritual calling, and something that I can do for a financial living. After searching for years and trying dozens of home based business opportunities, I have finally found a home business that fulfills my “why”.My passion is to be able to help others by sharing my time, talent and treasures. A home business that has a focus on the blessings that I have received and sharing them with others that are less fortunate. If you have ever given of yourself to help someone else, than you know what a great feeling I am talking about. It is rewarding and encouraging which keeps me focused on doing it, and the more that I work at it, the more enjoyable and rewarding it is which results in more money in my pocket. Your “why” may be different than mine, but the point is if you determine your “why” first your odds of being successful in your home business will greatly improve.Once you have determined that the home business you find will meet your “why”, then you can check into other areas of the business and make sure it is a legitimate home business. Criteria for a legitimate business includes; (1) make sure it is an honest organization with core values that include integrity; (2) it has an easy to follow, proven successful system in place that can be repeated; (3) it has a good compensation plan; (4) it has an automated back office support structure; (5) it should provide you with your own website; (6) it must include company driven marketing efforts that will draw in new prospects and send them to you; (7) and a live person support team that will give you all the help you need to get started and ensure future success.You can find the right work from home business for you also if you determine your “why” first and then follow its direction. Make sure you look for a home based business that fills your “why” AND meets this criteria, and you will be on your way to a good supplemental income stream, or better yet a new more enjoyable way of life, making a living working on what you enjoy. Remember, work on what you enjoy doing and the money will follow.

The 3 P’s To Success With A Home Based Business

A home based business requires many different keys to success but without the 3 P’s, promotion, patience and persistence, your work from home business will fail. Many entrepreneurs go in to owning their own business with less of a commitment than they realize. Avoid the dangers of frustration by the following suggestions.Promotion is the source of energy that drives your business. It does not matter where you operate your business whether online or in the real world you must promote that business. Your business will hunger every day for more people either walking in your real door or your virtual door at your location. If you talk to everyone about what you work at home doing, you will create and endless stream of traffic.Your goal daily is to have 10 quality conversations with people about your business. This can either be face to face, by phone or online but it must happen every day. Also you need to uses either free or paid source to promote your business to people you would meet no other way.Patience must be administered daily as you will see many opportunities to turn away from a work at home career that you may love. Remember it will take time to build a great business. The goal of every business owner should be to add customers every day to your business. If you will use this as your measure of success in the beginning of your home based business it will grow exponentially. If you use profit as your yard stick you will find yourself not spending needed money to maintain a profit.If you add 5 new customers to your business every day the first 2 years, you will have created 3650 loyal followers of your company. So keep track of who your customer are and find reasons to communicate with them. And if you can average generating $10 in profit off of each customer you nave every month your home based business will not just survive but will thrive.Persistence is important to building a network of customers that will promote you. You must be involved every day in helping build a home based business that your friends and customers want to promote. Your customer base can be the engine that keeps your business growing and not cost you money in advertising. One of my current businesses is a residual based business that works with brick and mortar businesses. I get paid monthly from these merchants for the services that we provide. About 2 years ago I finally could not find the time to go out and recruit customers on my own because of the number of leads that my customer base was giving me. I now have a personal assistant that helps me take care of these leads.Showing up every day and build your business every day no matter where you may be will lead you to success. Never stop never quit growing your work home based business. You will love to work at home.The find out more success secrets check out my resource box below.

How to Start a Small Business Online Today

Although many are drawn to the idea of having their own small internet business, many budding entrepreneurs do not know how to start a small business online.Have a Solid Business ModelThe first rule of how to start a small business online is to have a solid business model. There is no secret ‘push-button’ model to generating income online. There are many hyped-up schemes on the internet that promise that you will make millions of dollars for doing very little work by just pushing a few buttons. But these are just not reality. Having a small online business is just like any other business.However, a small internet business is scalable and enjoys higher margins and lower set up costs than a traditional ‘offline’ business. A solid business model for an online business has the prefect mixture of recurring income, affiliate income and high ticket income.Take ActionYou have to be willing to actually get started. The internet is a great resource and there a many articles, forums and websites that all provide information on how start a small business online. It is important to do research on the best business that suits you, but you have to commit and get started building a list of potential customers. This list of potential customers will become a valuable asset as you start to build a relationship with them. You need to provide valuable and relevant information to them to build their trust so that they will be willing to buy from you.Provide ValueAs mentioned above, one of the keys of how to start a small business online is to provide value. In the business world of the internet, if you give, you will receive. If you provide valuable information to your potential customers for free, they will be grateful for it and want more and will be willing to buy it. If you provide rubbish, they will think that you product is rubbish too.Generate TrafficA business online without traffic is like a shop in the back street of a old run-down town with no passers-by and nobody knows that it is there. If you really want to know how to start a small business online, you need practical skills to generate traffic to your website pages. Website traffic can either be free or paid for and they both have their advantages and disadvantages. But, with a skilled combination of both, you can have a long term stream of potential customers coming to your online business.Invest In EducationAs with any business, if you want to know how to start a small business online the most important skill you can learn, is marketing. There are many online business entrepreneurs who have gone before you. If they have had success with a business model that interests you, you can learn from their efforts. It is vital to have access to a community and mentors because learning from someone who’s already successful online will make a big difference to your results.The internet and the new digital economy has made it possible for many people to discover how to start a small business online. An online business does not require a bricks and mortar premises, staff, stock or large financial investment in inventory to make it a success. If you have a computer and access to the internet you can start straight away. You do not have to buy stock or worry about how to supply it to your customers and your online business can work for you whilst you are sleeping!

New Home Based Business Idea

So, you have a new home based business idea rolling around in your head and you are bursting to get started. It is time to harness that energy and create the business you have been dreaming about. Starting a business is fairly simple as long as you know the basics. Once you know what you need to do to start a business for the long term, then you can create the business of your dreams?

The first thing you should consider when you get that new home based business idea is its marketability. Are you going to be able to sell what you have in mind? Are people going to buy your item or service? Take a close look at the market for your new home based business idea to see what competition is out there and if people are willing to buy what you have to offer. If you find that your new home based business idea is not all that new, you may need to narrow your idea to a certain niche. Find the area that needs what you have to offer the most and that is the right area for your new home based business idea.

Then check the laws in your state. Depending on your new home based business idea, you want to make sure you have the right licenses and certification to offer your product or service. For instance, if you are opening a day care center from your home, you may need the state to come out and do an inspection. You may need to fill out special paperwork. In many areas you are required to obtain a business license for your new home based business idea. Check with your municipality to see what is required. A business license is usually inexpensive.

Another good idea is to create a business plan for your new home based business idea. Why would you need to put it on paper? A business plan allows you to create goals and values for your new home based business idea. It sets down on paper the concepts that you may find useful in the future. It allows you to see how you want to run your business and how you are going to make it grow. It does not take long to write a business plan, but it is usually one of your most useful tools for making your new home based business idea a reality.

As you are creating your business plan for your new home based business idea, you will be taking some time to assess your financial needs. You need to determine your operating costs and if you will need to obtain a business loan to get your new home based business idea up and running. If you apply for loans or look for investors you will definitely need a business plan. Take a look in the long and short term to decide what your new home based business plan will require.

Advertising is also an important part of making your new home based business idea a reality. You may not think it is important, but how will anyone know you exist if you do not advertise your products or services? One of the most inexpensive and easiest ways to advertise your business is to create a website. The internet is quickly becoming the primary way people find out about services and products, so a website is no longer an option for your new home based business idea. If you are operating on a budget you can create a minimal website for very little money. If you want a top-notch website for your new home based business idea you can go so far as to hire designers for your site.

Advertising also means putting yourself out there and marketing your business all the time. Join networking groups and send out flyers. If it is affordable, you can place advertisements in newspapers and magazines. You do not need to do everything at once, as you need to stay within your budget, but always keep your eye on expanding your new home based business idea.

Take your time to build up your new home based business idea right. You are probably fairly excited over the prospect of this new business venture, and you need to take that excitement and turn it into productivity to create the business you have in mind.

Facts About Small Business

Everyone agrees on a broad level that small businesses are vital to the American economy. However, most people would be surprised to know just how important. The United States Small Business Administration keeps records and statistics on small business in the United States and some of their findings are surprising.

First, the typical perception of a small business as a mom and pop operation with just a few, if any, employees is not the entire picture. The Small Business Administration defines a small business as an independently business with less than 500 employees. There are an estimated 23 million businesses in the United States that meet that classification. In some smaller towns in the United States, these businesses represent a major source of employment.

In fact, small businesses as defined by the Small Business Administration represent 99.7 percent of all the employers in the country and employ half of all private sector employees. More than 45% of the private sector payroll is generated by small business. Over the last decade small businesses have accounted for 60 to 80% of all new jobs created on an annual basis.

Although a large percentage of small businesses are in the retail and service sectors, small businesses are rapidly making gains in the technology sector. 41% of high tech workers like engineers, scientists and computer programmers are employed by small businesses. Employees at small businesses produce 13 to 14 times more patents than those employed by larger companies.

The Small Business Administration also offers some interesting observations on small business survival. Two-thirds of small businesses survive for at least two years declining to 44% after four years. Most of the factors that support a small business surviving are well known, such as access to capital and owner’s education level. However, a lesser known factor in small business survival is that the business is large enough to have employees.

Similarly, barriers to starting a small business include lack of access to start-up capital and lack of education. However, the number one barrier to small business start up and a primary concern of existing small business owners is access to private health insurance. Individual health insurance for sole proprietors is much more expensive than receiving coverage through an employer. If a small business owner is able to offer health insurance to its employees, the administrative and premium costs are often much higher than those for larger businesses.

The Finer Points of Internet Auctions


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.


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.


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.


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.


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.


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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