Explore the Benefits of Ongoing Consultant Education

The days when education and learning ended when you were handed your college degree are long over. These days, the most successful business people are those who constantly learn and grow, and failing to keep up with the latest advances in the industry can leave you further and further behind. As a management consultant, you simply cannot afford to stand still – in order to be successful you need to be constantly learning, growing and adapting. That is why consultant education is such a valuable tool for consultants across all industries and experience levels.

The benefits of consultant education are many and varied, from greater clout with a given client to foreknowledge of tax law changes and regulations that can affect your business and your bottom line. By seeking out the best opportunities in consultant education, you can enhance the value of your business, and your bottom line.

Bring More Value to Your Clients

One of the most significant benefits of ongoing education is the increase value it can bring to your clients. As a management consultant, your clients rely on you to be up to date on everything from changes in tax law to new regulations that could affect their industry and the economy as a whole. By taking advantage of education opportunities, you will be able to give every client the quality they deserve. Providing top notch service to your clients is what consulting is all about, and the better service you can provide the more successful your business will be.

Networking Opportunities

With so many consulting opportunities arising from word of mouth and networking, it is vital for consultants to grow their contact lists whenever they can. Attending an education seminar is an excellent way to meet people from across many different industries and business niches, and that can be good for your network and your bottom line.

Get the Licenses and Certifications You Need

In some industries having an industry license or certification is a good idea, while in other industries that licensure and certification is a basic requirement for working as a consultant. With the right consultant education program you can get the licenses and certifications you need to get started in your field, or to make yourself more valuable to your clients. Businesses are always on the lookout for experts who can help them grow your businesses. Becoming the go to expert in your chosen field will set you apart from the competition and help your business grow.

Tax Law Changes and Regulations

The tax code and list of industry regulations is not getting any shorter, and it can be hard for management consultants and others to keep up with the changes without some sort of formal consultant education program. From laws that will impact your biggest clients to regulations that will affect your own operations, you need to know where the changes are and what their effects will be. Choosing a quality consultant education program will allow you to get ready for those changes years before they take effect, giving you a heads up and helping you and your business adapt.

With the right consultant education program, you can enjoy all of these benefits and much more. In fact, the advantages you derive from a system of ongoing consultant education can more than pay for the cost of that education.

How To Discover Your PERFECT Home Based Business – The Fifth Of Seven Keys – It Is E-Friendly

This is the fifth in a series of seven articles that tell you how to sift through all the home business opportunities you hear about every day, and find the PERFECT home based business for you.

What makes an opportunity P.E.R.F.E.C.T.? In the first four articles in this series, we learned that the “P” in PERFECT stands for “Profitable”, that the first “E” in PERFECT means “Easy”, that the “R” stands for “Real”, and that the “F” means “Fits With Your Desired Lifestyle”.

Key Number Five-
The second “E” in PERFECT stands for “E-Friendly”. The PERFECT home business will make heavy use of “online marketing”, and can be completely focused on it, using the internet and e-mail as a channel for direct marketing of your product or services. If you’ve ever wanted to make money on the internet, make sure your business is E-friendly for both marketing and product delivery.

“E-Friendly” means:

• Marketing can be conducted entirely on the internet and through e-mail.

For purposes of this discussion, you want to make sure your home business can be operated using “online” internet and e-mail marketing methods. Up to 100% of your business may come from that marketing channel.

However, you may not want to ignore “offline” direct marketing. In fact, for some products, it could be a mistake to focus only on internet marketing. I started out with classified advertising and small space ads in magazines and with post card mailings. But for now, focus on internet and e-mail marketing.

• Products or services can be digitally delivered.

The best of all worlds here is for customers to place their orders on the internet and for the product to be instantly delivered to them as a PDF, MP3, or other digital file. Your costs are extremely low for digital delivery and your customer gets instant gratification of their need by getting the product quickly.

• Fits into a market or market niche where related key words are searched for often on the internet.

If the key words related to your products are not searched for regularly on the internet, you will have lots of problems using the internet to market your products. The lack of related key word searches is one piece of evidence that there may not even be a market for your products.

If there are many key word searches related to your product, it validates that there is a market for it. It is best if the key words imply the searcher has an intention to buy, rather than an intention to just gather information.

So, the PERFECT Home Based Business must be E-FRIENDLY. And, it must be PROFITABLE, EASY, REAL, and must FIT WITH YOUR DESIRED LIFESTYLE.

Super Tips For a Successful Home Based Business

Building a successful home based business is possible if you know the ingredients of the recipe to success. We tend to forget some basic elements when we run a business. If we realize the need to implement them effectively in our business operations, it will increase our chances of success tremendously.What are the basic elements of a successful home based business?The basic elements of a successful business should not be ignored as they are they keys to success.Develop a niche product:Identify the home business which you will enjoy doing rather than aiming only to earn money. You have immense knowledge of the things you enjoy doing and this can lead you towards success. Developing a niche product for specific targeted customers will help you to stand apart from rest of the crowd.Once you have identified your business, you can make it prosper by continued hard work, dedication, consistency, fast technology, lowest shipping, greater customer service and lowest price.Develop your strengths and improve upon any weaknesses:Since the competition is fierce, you’ll need to understand your abilities and self introspect from time to time. You need to go in for a thorough market research of the product and take steps to improvise and manipulate. Building on your strengths and improving on your weakness will help you realize the best for your business. It also prevents your competition from eating into your share of the market.Develop passion for your home based business: Being passionate helps you to develop irresistible energy which helps in conquering the minds of your customers. Earning money is the outcome of passion and not passion itself. Your business will thrive on your inner passion by transferring and multiplying this passion to your employees who work for you too.How can you achieve success through proper management?Home business makes you financially independent and frees you from the 9 to 5 rat race. However, being your own boss also requires proper management and time to make your business successful. In other words, it organizes and prioritizes your activities.Plan your budget and tasks:Making a solid plan with your objectives and effective strategies will help you create a long term consumer base and provide residual passive income. You will need to understand your capital investment and budget well before starting your operations. To utilize your capital effectively you need to make a budget plan. Planned tasks will help you segregate tasks to be accomplished for maximum gains.The budget will forbid you from spending unnecessarily and will help you to stay within the limits. The profits can be utilized in the expansion and growth of the business if the goals and objectives are clearly followed.Market Research and implementation of the marketing plan:A detailed market research of the product will help you to make a detailed business plan. A business plan not only involves the initial investment, but it also relates to marketing tools and advertising. A marketing plan will help you identify and promote the products which are in demand and the ones which offer high commissions.Products can be promoted online through email marketing or banner advertising. Email marketing will help you create a bond with your customers so that you can update them about your products and offers on a regular basis.Review your plans periodically:Reviewing your plan from time to time keeps you in constant lookout for building new strategies for growth. It helps you in resolving the problems which you are facing or the ones which you might face in future.Success of a home based business depends on your analytical, marketing and leadership skills, which comprise of various elements that need to be recognized, implemented and reviewed in order to gain maximum benefits.

What’s a Good Home Based Business Opportunity Network?

Many people seek to earn money all in the comforts of their home. Most of the time, it is generally a good idea for people who usually stay at home to engage in some sort of home based business opportunity network in order to earn extra money to help foot the bills. While there are a lot of home based business opportunity network available in the internet with the advent of online marketing, one should always study each and every details of the business before engaging in one.Before choosing to join a certain home based business opportunity network, it is very important that you choose what you are interested in and one that you will be comfortable to promote. It’s not just about how much potential income a certain business has to offer, the success of the business also depends on your interest and enthusiasm for it. The more you are interested in something, the more inclined you will be to seek ways to promote and market it.After deciding on what kind of business you are interested in, find a reputable home based business opportunity network that you can join. Remember, there are always ways to check whether a certain home based business network is legitimate or not. Try and ask around for opinions of its members and feed backs from their customers. You should also find out how the business is doing and what is missing in which you can capitalize on.Also take in consideration the fee required for joining. Will you be able to afford it with your capital? Are you comfortable with the price? In return, also weigh the potential income you will be getting with the capital needed. In addition, make sure that the home based business opportunity network you will be joining in has a well laid continuity plan for its members. Remember that the most important thing is to make sure that the home based business you choose can provide a steady flow of income for a long time.

How Can You Know What the Best Home Based Business Is?

Have you ever wondered how to tell if a home based business is the best? Maybe you are sitting there wondering just how you can work from home and make the money you need. There are many types of opportunities to choose from. But only you can know what the best home based business is and what you can best work from home.Only you know what you like and what you don’t like. You only want to promote a home based business that interests you. This increases the chance of growing a successful home based business. If you like what you are promoting, you will be more motivated to do the work required in promoting your business. So make sure you like your new business.Just because one type of home based business suits one person doesn’t mean that it will be suitable for you. You are the only one that knows what you are looking for. In other words, you know how much money you want to make, what products you want to promote etc.In order to find the home based business that suites you, you must know what you are looking for. Make a list of what you are looking for. Sometimes you may not have a clue. When that happens you do some research into the various opportunities. This gives you an idea of what each offers. After that you can determine what things are important to you in a home based business.Here are some questions to ask. This will help you determine the best home based business for you.1: What training do they offer? What do you need to learn to promote your new business?2: How much money or what percent of sales do they pay?3: Do they have good customer support?4: Do their products and services interest you so much that you want to tell others about them.5: Do they provide you the marketing materials such as, classified ads, solo ads, email ads, etc, that will help you promote your business?These are just a few of the questions that you should ask when you are looking for the best home based business. The answers will help you determine what you want to do. As you do your research, you will think of other area to investigate.You just want to make sure that you don’t join a business opportunity unless you are really sure that this is what you want to do.

Presenting a Property to Let

Once you have made the important decision of what a realistic rental price is for your property to let investment, you now have to present the property to potential tenants. It is vital when presenting a rental property that not only is the property pitched at the right price, but offered in good order too. This doesn’t just mean the property itself but the advertisement of the property needs to be offered in good order as the advertisement will be the tool that generates the initially interest of potential tenants.When offering a property to let too potential tenants the property particulars do not need to be offered with the same in depth detail as you would when presenting a property for sale. A good rental property description would be ideally three paragraphs long covering a range of property information from internal order, external order, and local facilities. Tenants looking for property to let will be firstly attracted to a rental property by the asking price, and secondly by the images that are presented for the property. When offering property photos it is not the usual sales type exterior shots that attract the tenant’s eye. A good quality kitchen or lounge shot will generate more interest in a rental property than an external shot. External shots are important and should be offered amongst the property images, but they should not be offered as the main image if you wish to generate as much interest as possible.When taking a property photo to include within your property to let advertisement it is well worth taking sometime to make sure that you do not end up taking a picture of the current tenants clutter and mess. As a quality kitchen shot or lounge shot is the very best photo to offer as a main image it is worth tidying up these areas before taking the picture. When taking the photo you want to create a vision for the new tenant. Offer the potential tenant a vision of how nice it would be to live in your property to let. This means taking a nice photo of a nice kitchen, it doesn’t mean quickly taking a photo of a sink full of washing up with cups and plates everywhere. Neither does it mean taking a quick photo of the lounge area with magazines, rubbish and clutter scattered everywhere. A clean and presentable kitchen or lounge shot will do any property advertisement the world of good and will generate significantly more enquiries than a poorly presented property.When presenting the particulars of a property to let there are some guidelines which need to be followed when looking to attract as much interest from potential tenants as possible. It is important that the property to let particulars offer the potential tenant all the information that the tenant needs to make a decision before enquiring about the property to let. This doesn’t mean that all rental property particulars should be 10 pages long, but it does mean that the property to let should be described in good detail spread over approximately 3 paragraphs.An example of what prospective tenants are looking for in the detail of a property to let would be;
Number of bedrooms.
Number of bathrooms.
Furnishing
Decor style and quality throughout the property.
Flooring e.g. carpets, wood flooring etc.
Kitchen facilities.
Bonus features e.g. built in wardrobes, wireless Internet etc.
Glazing type.
Heating type.
External features e.g. front and/or rear garden, off street parking etc.
Views if applicable.
Council tax band.
Utility bills included if applicable.

A property to let that offers property particulars that include the above detail and which is presented in approximately 3 flowing paragraphs will offer the potential tenant the very best information the tenant needs to make a decision on whether or not they wish to inquire about that particular property to let. If a good property description is offered it will not only gain more interest from potential tenants, but it will eliminate time wasting calls from tenants asking for further information on the property to let.

Property Management Tips That Positively Will Help Real Estate Investors

Once you purchase investment real estate, you virtually become the CEO and managing partner of your own small real estate investment business.

Of course, you feel good about becoming a landlord and owner of a real estate investing moneymaker. But unless it’s raw land, your work has just begun. Now you must manage the property. You are a real estate investor who has chosen the renting of space as a business, therefore your goal now is to keep the units full, and at the highest rent per square foot possible. In other words, now it’s time for you to focus on property management and the day-to-day activities of running the property.

In this article, we want to consider the big picture of property management and look at some rental management basics anyone connected with real estate investing should understand and strive to achieve.

1) Property condition – Getting the best tenants and commanding the highest rent is the primary goal of property management. It starts with a sharp-looking building that has good curb appeal; you must keep the structure, landscaping, common areas, and parking in good clean condition. Landlords must present a product that is clean and sanitary to new potential tenants so get prepared to purchase mops and brooms regularly because smart real estate investors make every effort to maintain and improve the property.

2) Tenant applications and screening – Require each potential tenant to complete an application and then follow up to verify their employment, rental history, and credit and criminal history. Remember, it’s always easier to get tenants into your building then it is to get them out. It’s recommended that you avoid department store rental applications and obtain the forms from your local apartment owners association. If you haven’t already done so, check online for the apartment owners association nearest you and contact them. They are one of the best organizations real estate investors can join.

3) Emergency repairs – Always have reputable maintenance personnel on call to service emergency repairs. This may be your job or someone you hire, but your tenants must have access to a repair “help line” they can call 24 hours a day when something must be fixed immediately. Remember, your tenants are your best clients, and you are in a unique business that requires your client to pay you money to use your product. And if you want to build cash flow to maintain the property and put money in your pocket, you need your tenants. Keep your tenants happy by listening and responding.

4) Aggressive marketing of vacancies – Get the word out about an upcoming vacancy instantly. Use signage, advertise in the newspaper, post flyers, offer a modest referral fee to existing tenants, or post it on the web. Nice signs and banners out front are an easy way to find prospective tenants to rent your vacant units. Just avoid cheap-looking, poorly worded signs. Take a few extra minutes to show that you take pride in your building and care how it appeals to others.

5) Move-in/move-out coordination – Always plan to get a unit “rent-ready” within a day or two after it becomes vacated because when you have tenants ready to move in, they usually want to move in as soon as possible. Even when you don’t have a new tenant in the wings, it’s much easier to rent a unit that’s clean and ready to move into. Things such as dirty carpet, scuffed walls, torn screens, broken switch plates or towel bars, and so on should be addressed, corrected, and repaired. You might not want to show the unit until it’s ready. In the meantime, you might want to show a prospective tenant the manager’s unit.

6) Keys and locks – It’s always a good idea to change locks each time you have a turnover in tenants. This added security is good for you and your new tenant. Once the existing tenant vacates the unit, simply call a local locksmith and change the locks. The cost is minimal and the benefit optimal.

7) Learn the laws about eviction – Know what you must do to evict a deadbeat tenant even when you don’t think it’s necessary, because if you do find yourself in court with your tenant, you need to be prepared. Unfortunately, many states have passed laws that don’t favor the landlord. Low-income tenants, for instance, have generated a tremendous amount of sympathy that requires landlords to be extra meticulous in their defense against complaints that wind up in court.

8) Keep accurate books and records – Maintaining a good income and expense history is vital to your rental property business and the cornerstone to profitable real estate investing.

Okay, now here’s an alternative to self-managing your investment real estate.

Many real estate investors simply turn their properties over to professional management companies. The advantage being that it relieves the real estate investor of the time and stress of having to deal with tenants and repairs, and puts matters like late rents into the hands of experts. A professional management company is not free, and in cases where the property is small enough for owner management, the cost of outside fees for professional property management might not be justifiable. But hiring a professional property management company is a reasonable option for investors who dare not or cannot manage the property themselves.

Should you account for property management during your property analysis?

Yes. If you’re purchasing rental income property, during your cash flow analysis (whether in a spreadsheet or with real estate investment software) be sure to include 5 to 10 percent of the gross operating income to cover potential property management fees, even if you plan to self-manage the property. Here’s to your success.

Are You Ready for Direct Response Radio Advertising?

These Six Questions Tell You How to Make the Answer “Yes”

Direct response radio advertising is an amazingly under recognized way to grow a business quickly and profitably. For one thing, it’s fully accountable, so every dollar spent can be tracked to the revenue it generates and unprofitable spending can be eliminated. In addition, it’s extremely scalable. Once you figure out what works, you can increase your revenues and profits simply by increasing your media spend. It’s nearly as easy as stepping on the gas pedal. Direct response radio advertising is truly a powerful engine for profitable growth.

When it is done properly.

Most of the time, radio advertising is not done right. The first step in “doing radio right” is not to do it until you’re ready. The questions in this article will help you determine whether you’re ready to take advantage of direct response radio advertising. If you’re not ready, this article will tell you the steps you need to take to get ready.

Do you know how you will define success?

How much, in profit, is each customer worth to your business over the course of that customer’s relationship with your company? This is the customer lifetime value question and it is vital to know this before you go into direct response advertising. Why? Because the definition of success in direct response radio advertising is acquiring a new customer at a cost that allows for a profitable relationship with that new customer. If you don’t know the lifetime value, you cannot know how much you are able to pay to acquire a customer.

Think about the day when you run your first ad schedule on a station. The results come in. How do you know whether they are good or bad? Are they good because there is revenue? Are they good because the phone is ringing or because visits to the web site went up? These are not sufficient to understand and evaluate the performance of your advertising. You can only evaluate advertising performance within the context of your customer lifetime value.

But knowing your customer lifetime value is not enough. You have to break this down into the metrics that you’ll use to evaluate and manage your campaign. These metrics are part of the formula for lifetime value, metrics like “cost per lead” (CPL), cost per order (CPO, also known as CPA or cost per acquisition), conversion rate, and average revenue per sale. Do not begin a direct response radio advertising campaign (or a business of any sort using any kind of demand generation tactics) until you know your business profitability metrics very well.

Are you prepared to test?

We have often heard people say “We tried radio advertising and it doesn’t work for us”.

Here’s the problem with that statement: Developing a profitable direct response radio advertising campaign isn’t something that is accomplished with a “trial”. It is far too complicated an endeavor, with far too many variables, to assess its effectiveness for your business with a “trial”. There are creative variables and media variables, and together they present a daunting number of possible combinations to achieve success.

To properly assess the potential for direct response radio advertising to generate profitable new customers for your business, you must approach direct response radio advertising with a testing mindset. That calls for a patient, methodical approach.

What does this mean for you? It means that you need around $20,000 to test multiple ads over a 4-8 week period before you’ll know which approaches will (and won’t) yield more profitable results. Don’t go into direct response radio advertising with a “dabble” mindset. Go into it with solid business goals: a) To assess the potential of direct response radio advertising to drive profitable new revenues, and b) to understand which approaches – both creative and media – produce the best results for your company. While you’ll generate revenues and profits during the test, the real benefit of testing is in the learnings that can be applied to a larger campaign over a long period of time to drive significant sales and profits.

Do you have a compelling offer?

The offer in your direct response radio ad is one of the most important elements for success. But why do you need to be thinking about that before you even approach radio advertising? Isn’t that something your radio advertising agency should come up with? Well, yes, but… The “but” here hinges on the fact that any offer must be something that’s possible given the business profitability structure, and possible given the systems and processes that run the business. These are constraints that only you know about. It will take time to alter existing systems or processes should that be necessary to support a compelling offer in your advertising. Your agency might recommend you give away a free DVD player with each order. That would drive a lot of orders, but would they be profitable? You need to define the playing field for the agency and then engage in the dialogue of getting the most out of what’s possible given the constraints.

What is a compelling offer? It’s different, it’s relevant, and it’s meaningful. A free complimentary product or service is a good example. For example, if you’re marketing a skin care product that fights acne, you can give away a skin softener product as a bonus. Others use free trials with conversion mechanisms. These can work well provided the product performs as promised. Still others employ the ‘risk free trial’ approach, which essentially positions the 30 day money back guarantee as an offer – a “risk free trial”. The possibilities are many.

Is your business infrastructure set up to support direct response advertising?

The most important aspect of preparing for direct response radio advertising is ensuring you’re ready for the volume of leads and orders that can result. The easiest way to project this is to know your CPL and CPO projections (see above) and then assume a specific weekly media spend. For example, say you’re running $25,000 in media per week in direct response radio. This is considered a relatively small campaign. If your business model shows that you expect a CPL of $15, then you’ll be driving 25,000/15 = 1667 calls per week. Can your sales call center and fulfillment center handle this volume? More importantly, can they handle more, because when you’re profitable while running a $25,000 weekly radio campaign, chances are you’ll soon want to grow to five to ten times that size as soon as you can.

There’s another vital piece of infrastructure you absolutely must have in place before you begin direct response radio advertising. It is a firm requirement because without it you’re wasting your money and ruining your reputation with the vendors you’ve hired to help you build the campaign. That requirement is excellent data collection and transmission to the radio media buying department at your radio agency. By this we mean that you absolutely must have a mechanism for capturing the lead, order, and revenue data by the unique identifier (such as the toll-free phone number) for the media buy that generated the call. If you’re sending calls to a call center, this is no problem. They understand this need and are already set up to accommodate it. If you’re trying to take calls in house, most of the time you’ve got work to do to ensure you can provide your media company with the information they need on a timely basis (usually first thing every morning). If you are sending leads to a web site, which is happening with increasing frequency, you must set up data capture and transmission mechanisms via a web tracking software program like Google Analytics before the campaign begins, preferably before you even contact a direct response radio advertising agency to get started. It’s amazing how many times we’ve been told that this tracking mechanism is in place and that we’ll get daily data exports from the web tracking software, only to begin the test and find out we won’t be receiving data for many days and what we do receive will not be complete.

Are you aware of your biases and assumptions?

This question probably sounds a little different than the rest but it’s well worth spending some time on. What you must understand is that you, the client, lead the show. As the agency, we will tell you want we recommend based on our expertise in the field of direct response radio advertising. It’s up to you to make sure we’re making those recommendations with all of the necessary information. Biases and assumptions can damage this important aspect of the client-agency relationship.

Biases and assumptions underlie beliefs you have about key campaign questions like why your customers buy from you, or what appeals in advertising will resonate with the target audience. If you inject these into the process as facts, your agency will likely take them as such. The agency is unlikely to argue strongly with you – - it’s just the nature of the “the customer is always right” tendency in client-agency relationships (as well as many others).

Let’s say you’ve been advertising online with banners and pay per click (or with TV or with print – the medium doesn’t matter). You want to test radio. One common mistake is to do a survey of your existing customers and ask them why they buy. The results show that the reasons these people buy match up very well with the appeals in the advertisements that you’ve been running. You conclude that the exact same approach will work in radio and you require that approach be followed by the agency. But you’ve overlooked the fact that your survey was very biased. Why? Because the people you surveyed were prompted to become customers by the ads you ran. Of course you’re going to find people who validate the ads you’ve run – they responded to them to become customers! The non-biased way to do a survey is to collect data from a random sample of people (not current customers) matching the target customer profile.

Notice the point is not to eradicate your biases or assumptions, but to become aware of them. It’s nearly impossible to get rid of biases. However, if you’re aware of them you can then test them methodically and you won’t be in danger of leading your agency down the wrong path – one that often leads to the failure of radio campaigns.

Are you different?

Me-too products or services don’t work, period. In direct response you find this out quickly. You must be different. One important twist to this is that you can be different in any one of a number of different ways. As a certain marketing professor liked to say “you can innovate anywhere in the value chain…the more places the better”. Did Dell Computer make innovative new computers? Not at all. Dell found a way to put computers together faster, with higher reliability and at a lower cost than any other PC maker. That, among other things, translated into a super low cost structure which meant Dell could beat competitors on price and still make more money than those competitors. There are other examples. Maybe you’re marketing a product in the diet aid category. There are “support” food programs (Weight Watchers), pills (Trimspa) and informational/diet regimens (the Atkins diet).

Do you have to have the latest breakthrough pill to compete? That would be nice but there are only so many of those to be discovered. So you can be different in another way. Your spokesperson could be a celebrity. Your marketing angle could be radically different. Your offer could be unique. Your cost structure or overall business model might allow for an incredible free gift or a very low price. Your customer retention program might be so strong that you can give away a free trial to acquire large numbers of customers. There are many, many ways to be different. How you’re different – while important – is still second to the fact that if you’re a me-too product you’ll not last long.

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.


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