Home Based Business Opportunity – Best Way to Earn Online

A home based business opportunity is one that gives you business ideas that you can do from the comfort of your own home. There are numerous home based business ideas that you can think of and make a choice as to which one to use to get started off. But first, why do you need a home based business? The idea of a home based business opportunity started off in the early 2000 when it was found that if given the right direction and the right impetus, money can be earned by sitting at home and without actually having to do a 9 – 5 job.While a full time office job gives you the security and the guarantee that at the end of each month you have a payday to look forward to, it also drives in many other factors like monotony, boss not satisfied, partiality and biasness and the like. This results in the employee becoming ill and soon he is bed ridden, unable to take the pressures of the job. Tension builds up within the family, there are mouths to feed and people to be looked after and soon the entire family breaks down. Ruin virtually stares at the family in the face. To cut all this out, and keep them out forever, the concept of home based business came in.What exactly is a home based business opportunity? This is an opportunity that lets you work from your home with the help of a good internet connection and a PC. There are various home based business opportunities. Affiliate marketing is one of them. You become an affiliate and spread the good word around when you start earning commissions. The more you sell to your downlinks the more commissions you get. Affiliate marketing is easy and now there are downlinks you never knew before ready to work for you across the globe.People want money and now they are at your door wanting you to be a part of the team earning money. If you take affiliate marketing seriously, you will soon find out that earning money is not difficult. Let your downlinks work for you. Get connected with other affiliates and you have their downlinks too. Concentrate on building up your downlinks first. The more the downlinks the better your earnings.Start off writing articles. This is an excellent home based business opportunity. If you know the grammar well and can write simple English, you are the man for the job. Search the net and you will find where you can write for money. Freelance writing is now an excellent source of earning money and if you are at home without any other commitments, the more you write the more you earn.

Starting a Home-Based Business: 3 Mistakes to Avoid

Are you a baby boomer who’s fallen prey to tantalizing internet marketing business opportunities? Have you been enticed by incredible income possibility ads? It’s easy to do. Alluring and seductive messages are rampant on almost every web page you land on. Being influenced by persuasive messages of wealth and freedom, is easily done.Regardless, get “click happy” and make reckless decisions is likely to have you be victim to some expensive mistakes. The problem is that weeding out the “good” from the “not so good” new business opportunities, often poses a problem.Research shows that approximately ninety percent of baby boomers and others bomb at a new business venture within the first few months. This happens for one simple reason, and that’s because emotional thinking momentarily takes over from any rational thinking. What this means that making a hasty action without consideration of what’s really needed to create a profitable business.The captivating ad copy or now, more likely, the highly persuasive video, paints a picture that conveys almost effortless work is needed to turn on the money-flowing tap.Believe me when I tell you, it’s a load of baloney! It takes time, energy and planning to make any work from home business opportunity successful. I very much subscribe to the philosophy of “working smarter not harder,” which means a solid plan of action is essential. This is a business, and needs to be treated as such.There are certainly an abundance of highly legitimate internet marketing business opportunities, with extremely successful, solid leadership, who offer the opportunities to create a money-making, profitable home-based business. The problem lies in distinguishing the genuine from the fraudulent, better known as scams. Herein lies the pitfall for many baby boomers who easily, and often unknowingly, make mistakes when hunting for an ideal online home-based business opportunity.Let’s look at the three most common ones:1. Being too quick to clickBeing drawn into tempting moneymaking opportunities is as quick as a click. But, making hasty decisions can mean headaches, and frustrations you certainly don’t want. When you look for a work from home online business opportunity, take your time. Know what you enjoy doing, and look for something that’s a good fit.Make sure that you thoroughly research any home business. The internet is overflowing with information. Read what others have to say about the company you’re considering. Gut feelings have their place, but basing them on some solid facts, will help you make a wise decision. Take into consideration, the moans and groans of the dissatisfied. There are always going to be some. It’s when you find pages of complaints that you need to look into another, more desirable work from home business opportunity. Simply put, avoid making any impulsive decisions.2. Being starry-eyedHowever, ideal a new home-based business opportunity, stay focused on the reality of what’s possible in your life. Consider you other commitments – time with grandchildren, an elderly parent, and more. Assess what time you really have available for this business. Are there certain hours in the day to set aside to concentrate on this new venture? Be realistic. Know that, especially in the beginning, you’ll need more time to get the business rolling. Being well organized, and efficient with your time-management allows you to be more efficient, effective, and ultimately, more profitable. Simply put, avoid over-committing, and being unrealistic with your time.3. Being naiveWhichever internet marketing business opportunity you decide on, realize that there’s always an investment you have to make. Every company is different, some ask for a small amount to get started, while others carry a much higher price tag, or offer the opportunity to buy in at different investment levels. Know at the onset what financial commitment is necessary. In addition, check out what other monies you’ll need to operate the business. Find out if there are other services you’ll need, special software, or marketing that needs extra budgeting. Chances are you’ll need more than you think. Be prepared, and know what it takes to get onto the path of success. Simply put, don’t be naïve, and think that your one-time investment is all that’s needed.Once you’ve decided on a new, and exciting work from home business opportunity, remember to do the research, and thoroughly understand what time and money commitments are needed to get your new venture as an internet marketer up and running, profitably.

Home Based Business Owners – Are You Planning to Fail?

Are you a home based business owner? Or, are you looking for a home based business that would allow you to spend more time with your family and children? The current economic problems being experienced world-wide are also presenting an opportunity for many who would like to quit the corporate rat-race and design an alternative lifestyle that allows them to spend more time with the people that are important to them.A Daunting ProspectStarting any business let alone a home based business can be daunting. But there are many home based business opportunities that allow almost anyone to achieve success and earn an income. The problem for many people isn’t so much whether they can earn an income, but rather it is how quickly will they be able to generate an income that will support themselves and their family?This question is often better answered by the prospective business owners themselves rather than looking at the opportunity per se. There are many business models that can return very healthy profits, but which don’t due to actions, or, as is more often the case, inactions of the person running the business.Whilst a legitimate home based business model is an obvious requirement, this is not the end of the story. There are many opportunities where success has been achieved both by the respective distributors and the companies involved also, but this is no guarantee that the next person to come along will also be successful.Your Actions CountThe success or failure of any business really comes down to the individual running the business. There are many businesses operating within the same industry as competitors, but not all businesses succeed. Whilst there may be many reasons why one particular business succeeds while another competitor falls by the wayside, ultimately it comes down to the person or persons in charge and the actions that they take. If a business fails, does that make that business model a failure, or is it the failure of those running the business?In the home business market, the proportion of people starting businesses without any business acumen or understanding of what is required in terms of effort, is disproportionately high. The net result of which is that any failures are blamed on the opportunity or business model rather than perhaps the business owner’s lack of action.Planning Is CrucialWhat is required is for the business owner to take the necessary action in order to succeed. The sort of action that is needed starts even before becoming involved in the business, at the assessment stage. With any business, the appropriate due diligence and research should be undertaken. Do you understand your target market? Have you put together a business plan that can be executed? The trouble is that because a home based business often doesn’t require the same level of investment that some of the more traditional business models might, it is seen as an easy option for starting up a business. This perception also leads to a lack of due diligence and research being undertaken, and an absolute lack of planning.If it is accepted practice to put a business plan together for the so-called ‘traditional’ business models, then why has it become acceptable to start a home based business without so much as sniff of a plan in sight?It is an unfortunate fact, that until prospective home based business owners start to plan their businesses to the same degree that would be expected of any other business model, then the continuing high failure rates are likely to continue.

Don’t Make Mistakes – Tips for a Home Based Business Opportunity Seeker

A huge percentage of the home based business opportunities promoted on the internet are a complete waste of time, and will end up only costing you money. One indicator of these types of businesses is when they are unrealistically over-hyped. If a business promises that you’ll be making thousands of dollars within a week then you know not to read any further. You will also most likely find that after your initial investment you are asked to pay more money for extra features.With so many untrustworthy businesses around you may be wondering at this stage how to go about finding the best home based business opportunities. The good news is that there are many people in exactly the same situation, and because of this there are a huge number of helpful resources available on the internet. From websites containing helpful links to forums where you can ask questions and talk to other opportunity seekers, there is information there for you to use to find a good home based business.Once you have found a home based business opportunity which you think may have potential then it is important to do some research on the company. By Googling the name of the company you will find a lot of useful information, including testimonials from people who have already been involved in the opportunity. It is also a good idea to Google the owner of the company to see if their previous ventures have been a success, and obviously to ensure that they have never scammed anybody.A good home business opportunity will offer features which less reputable ones do not. There will be step by step training available to help you to get your business off to the best possible start. There should also be general advice offered from the business leaders, including how to leverage a network into a strong business model. In short, the best business opportunities will give you all the tools and resources you need to be successful.There are many benefits to running a good home based online business as opposed to any other start up, which is why these opportunities are so popular. Firstly the start up costs themselves are generally very low, and there is no cost for overheads such as rent, heat, and lighting other than what you would be paying anyway for your home. It is usually much quicker than any other business to turn a profit, and as your own boss you can adapt your working hours to suit your lifestyle.There is a lot of money to be made by a home based business opportunity seeker who knows how to go about finding the best opportunities. Businesses will be judged on their merits, and the best ones will have experienced business leaders providing the training and resources needed to be successful in business.

Small Business Owners: Improving Profits in Daily Operations

When you own a small business, there are dozens of people and projects vying for your time and attention. It can get hard to figure out where to focus your resources and easy to become overwhelmed.Furthermore, in my years of consulting what I have found to be the difference in success or failure of a business was not the amount of money, a business owner had on hand, nor the education level of the management team. It was his or her daily habits and beliefs, that determined success or the lack there of.What is profit? It is simply, how much money the business makes after transaction and paying taxes is over.Traditional thinking about profit says, Revenue – Expenses = Profit. However, this method fails to measure lost opportunity.What is lost opportunity?First, business has people performing activities each day. The lost opportunity is in not measuring, managing and leveraging those activities on a real-time basis.Management fact, your company profitability depends on how well your people consistently perform specific activities minimizing errors.The following are 12 tips to help your business increase operational efficiency, reduce costs, improve customer satisfaction, and stay ahead of the competition.1 – Living a balanced lifeA. Work and business are not the be-all and end-all of your life. Learn to have fun! Spend more time with your family. Take a vacation once in a while. Engage in activities that will rejuvenate your spirit and your life. Take care of yourself, and your health, exercise and eat fruits and vegetables. Your productivity and focus will improve if you are stress-free and healthy. Bad health and divorces has destroyed more businesses than I have room to write about in this article.2 – The Destination: Goals, Themes and VisionA. Go find your business plans and update it. Since your business’ inception, a number of factors must have changed – from the overall business climate to your product line. Take all those changes into consideration, consider the business and economic climate, factor in your and your family’s goals, and get a clear assessment of the direction of your business. Get in touch with your business coaches, if any. What is your overall vision of your business? What are your goals 5, 10, 15, 20 years from now? What is your business theme and brand to your customers? Is it relevant to your business and memorable and fun for your customers?B. Setting Team Expectations1. Small business owners need to insure all managers and employees are on the ‘same page’ daily. Setting proper team expectations and accountability, is the most impactful thing you can do to insure the success of your business. Have weekly meetings with management teams to discuss accomplishments and challenges.3 – The System: Starting your day off with motivationsA. Take a notebook (or a laptop or tablet) and jot down your thoughts and plans for the day. Whether you prefer doing this in the morning or in the evening, it is always best to take a step back, review what happened during the day (or the day before), and think of ways how you can do better. Take time to review your profit scorecard, in order to find quick hits and losses. Send out an email where you see outstanding work, done the previous day.B. Figure out the 20% of activities that are producing 80% of desired results. Eliminate activities that are keeping you busy but not producing results, daily.4 – Understand Customer NeedsA. Write down ideas, whether for your marketing strategies, product lines, or new projects that you want to take on. List your ideas on how to expand and energize your business. Only through innovation and continuing adoption of relevant new products and ideas can your business improve its competitiveness and profitability.B. Take time to tap into your customer database and get in touch with your existing customers. Whether by phone, email or letter, contact your customers to greet them and remind them that your business is ready to serve them again. Get their opinions about what they think about your business (and make getting customer feedback a part of your business processes). You need to constantly look for ways to encourage repeat business. Although marketing and advertising are important to get more customers, quality, service and customer satisfaction are what keep a business successful in the long run.5 – Understand the Profit Formula in your day to day operationsA. What are the critical success factors in your business, daily and monthly targets to meet or exceed annual profitability?B. Develop an executive dashboard for monitoring operational progress on a daily, weekly or monthly basis.C. Compare the employee time documentation with information gathered from your operational monitoring process. If productivity is not meeting or exceeding goals, look at employee time logs where time is not being used as effectively as possible and make adjustments to that employee’s job role. If operations are running on track with goals, consider elevating goals by small increments until you reach a point of break-even.6 – Keep employees involved, motivated and trainedA. Good employees are hard to find; yet they are an important element in your business. It all comes down to choosing the right person and personality type for each role so that no one is doing tasks that they resent. Forget coaching weaknesses (too time consuming), focus on leveraging strengths and passions. Check to see if they are getting what they need and make them part of the team. Help them understand the importance of their role in your business and how their job impacts the business as a whole. Review your relationship with your employees and find ways to keep your relationship happy and avoid costly attrition.B. Hiring the right leader, someone who owns the operation from start to finish.1. The small business owner needs to hire a operations leader to own the operation from start to finish. This person should be obsessed with the details, the metrics, and the numbers. They should be elated to hit their goals, inspired by business coaching to do better when they miss it. They love the success of your company; it’s not a job but an adventure to them.7 – Keep an eye on new opportunities, markets and productsA. Start the year by exploring new markets for your business. Whether you are looking at targeting a new demographic or getting your business up on the web, take time to plan how you can expand your existing market. Look for ways to improve your marketing, whether by winning easy publicity, arranging an open house or preparing direct mails.8 – Find Ways to Operate efficiently with lower costA. Motivate employees with production goals and ask employees and managers what they need to improve workplace operations. If suggestions seem practical and are within budget, consider implementing them. Example, only scheduling 30 minute meetings unless subject requires extra attention.B. Documenting your Processes1. Document the workflow of every operation within the business, with policy and procedures and special customer instructions. Yes, this is a time-consuming, tedious, boring exercise, initially. However, if you are able to provide clear and concise documentation to your team, it leaves very little room for things to be miscommunicated. Documentation makes it easier to onboard new employees, saves business from being reliant on any one person and allows the business to continuously improve and innovate operations, without having to waste months and money, researching and gathering workflow procedures from inexperience contract workers. Documenting helps to avoid ‘lost opportunity’ of being slow to change operations in the marketplace.9 – Use Process Improvement initiatives to your competitive advantageSix Sigma methodologies is a tool that can be utilized to improve process, people and profits. By establishing performance measures for key processes, asking the following questions.• What is the purpose of the key process?• What is the expected deliverable?• How will the process owner know if there process has succeeded?Six sigma benefits for small businesses are1. Provides a road map and tools to determine root causes and solve problems2. Reliable facts for decision making, improved metrics and measurements3. Improvement in order accuracies and on time delivery4. Improvement in labor efficiencies enterprise wide5. Increased customer confidence and profitability (customer buy more better quality)As a business owner, it is vital that you understand how ‘technology’ helps me to make more money by eliminating errors, overhead expenses and attracting more customers.Invest in new technology that will help streamline operations and improve productivity, after processes have been documented. This could include new computers or equipment related to your industry or designing more efficient work stations and telephone systems. Provide training for new hires to ensure they are aware of how to effectively perform the functions of their job. If seasoned employees are underperforming, send them for training refresher courses.Documenting processes, installing six sigma and implementing technology improves the customer experience with your business, making your profit planning measurements more transparent to employees throughout the enterprise.Implementing an employee recognition system and recommendation process, continuously improves operations aligning performance with corporate vision, mission, performance measurements and corporate profit scorecard. Quality improves your customer emotional attachment to your business. Loyal customers are repeat customers which will recruit others to your business, increasing profits.10 – Identify and Resolve Weak Spots in the SystemA. Take stock of all aspects of your business operation and list down the areas that you want to improve. If your list of delinquent receivables is longer than Santa’s list, find out how you can improve your billing and collection process. Perhaps you need to improve your record keeping to help flag you on delinquent accounts11 – Keep an eye on your competitionA way to get the inside edge on your competitors is by asking your customers for help. This need not be especially difficult or complex. Simply ask your customers (in the form of a survey or follow-up call) if there’s anything a competitor does (or sells) that they wish you did. Now, the idea isn’t that you’ll necessarily turn on a dime and honor every request that comes in.Own a share of stock in their publicly-traded competitors. This alone entitles you to detailed financial information about the company each and every year. But what if you and your competitors aren’t public companies? The basic idea is the same: any financial data you can get your hands on is worth having. You want to know as much as possible about what their costs are, who their suppliers are and how you stack up in comparison.If there is a trade journal or research study about your industry, now is the time to subscribe – and digest what it contains.In addition to using your competitor’s products, you should go through and closely study their sales funnel. Every successful business has a system for attracting, educating, selling and following up with customers. Whether it’s via direct mail, Internet marketing or the telephone, this is the infrastructure that actually turns their prospects into buyers. How do you know if your sales funnel is performing at max capacity if you don’t compare it to the competition?12 – Go Play Golf: Network, Network, NetworkEffective business networking is the linking together of individuals who, through trust and relationship building, become walking, talking advertisements for your business.Join business associations to meet other business owners, you might be surprised at who will assist you towards your success or what ideas you hear that can solve your current dilemma.Join your areas Chamber of Commerce and participate in community service events. Get involved in your community by volunteering, donating to and/or sponsor local events. It gives you the opportunity to network with other business owners and maybe cross promote with others. These monthly meetings let you know what going on economically in your area.

The Basics To Starting A Home Based Business

Choosing The Best Home Based Business
Starting a home based business seems like a very exciting endeavor to embark upon and for those who are already very enthusiastic about the particular product or service they intend to offer, this kind of commitment may not seem like such an enormous one to them. However, some caution should be exercised when actually starting the home business, especially if it is done without careful thought and planning it could end up being a costly mistake and an overall bad experience.

The following are some points to consider before actually taking the plunge into one’s own home business experience:

Making sure there is a market for the intended home based business feature is important. There is little point of setting up a home business based on a service or product that does not have a market as people are generally not interested in what is being offered. Therefore, some time and effort should be exercised to ensure the intended elements are marketable.

Consider the importance of having a separate space that is sole used for the home based business. Working within this designated space would help the individual focus better and also keep boundaries evident for others to be aware of. The mental and physical positive points to having this designated space cannot be emphasized enough.

Investing in proper equipment for the home based business is also another important factor to consider. Lacking in this area would only end up costing the individual further when these interruptions add cost to the overall business entity even before substantial profits are evident.

From a legal point of view all the necessary documentation and licensing regulations and requirements, should be adequately perused and approved before embarking on the home based business venture. Nothing is worse than incurring the wrath of various governing agencies when proper procedures have not been followed.

Figure Out What You Are Good At, And What Your Interests Are
Staring a home based business along the lines of the individual’s interest is something to consider as it would be a huge contributing factor to the eventual success of the business.

Deciding to do something that one is good at or interested in creates the ideal mindset that will help to keep the business afloat if during difficult times and this is a very important motivating factor for those going into this kind of business venture.

As there is really no one to spur the individual to press on, the interests’ factor is what can ensure the desire to succeed stay prevalent always.

When a home business is built around an individual’s interest there is also the added advantage of the individual having the necessary knowledge about the choice made that will help to steer the business exercise in the right direction.

Going in blind will not be an issue, and good decisions can be made simply based on the knowledge that comes from the interest in that particular area.

Also in doing something that one enjoys and likes very much the evidence in the quality of the work being produced will be very visible.

When there is a level of excitement around the business environment it can not only be a positive element but can also help the create the ideal work mindset and physical conditioning that dictates eventual success no matter what the challenges are.

Most people who venture into the home business based on their interest have been statistically proven to be able to make a success of the endeavor.

Making the experience come forth as pleasurable rather than just “work” is often what keeps the individual able to come up with further ideas that will also positively contribute to the innovation of the business, thus keeping it relevant and vibrant at all times.

Know What Your Strengths Are-
Being able to identify and tap into one’s strengths is a very positive and advantageous thing to be able to do.

The energy one is able to harness from this is immeasurable and often in the single most important factor that contributes to the success of any endeavor undertaken.

Using these strengths to further develop one’s natural skills and then leverage it to one’s benefits is also another advantage. The individual will be able to eventually downplay or repair any apparent weaknesses along the way.

Traditionally people often tend to focus on the negative elements and in the process of this; they try to make the necessary adjustments to combat this negativity.

However, doing so, there is the possibility of paying too much attention to this and forgetting to tap into the positive elements that are brought on by the thorough understanding of one’s strengths.

Thus instead of harnessing and capitalizing on one’s strengths, energy is being wasted on correcting weaknesses which will eventually cause valuable time and resources to be wasted.

Capitalizing on one’s strengths will bring forth the highest potential in the individual and offer the platforms to expand and explore further avenues to shine and be productive.

Taking the time to actually explore the various interests that excite the individual would be one way of specifically identifying the said individual’s strengths.

This can be done in a number of ways such as observing what excites the individual, what creates the willingness to extend help even when the circumstances is deemed not likely to improve, being able to identify what sort of activity will most likely attract the interest and commitment of the individual, where and when the individual is most likely to contribute mentally or physically and any other such scenarios that would cause the individual to be more approachable and more likely to be contributive.

Research The Market For Your Interests And Skills-
In order to make the right choices when it comes to starting up a home based business endeavor one should first understand the market sentiments and what and where there are companies that fit the interest and the skill intended to be offered for services are located and what the expectations are. This is critical to ensuring the elements that relate to the interest and skill are well tapped into to bring forth optimum results.

Perhaps among the first steps to be taken would be to analyze the skills and interest of the individual and then using this to gauge the lucrative aspect and contribution of the choices made.

By doing this it is hoped that the ideal match would be made to match the skills and interest with the selected business endeavor for successful results.

The likelihood of experiencing problems that would stall the business will be much less if there are relevant skill to be tapped into whenever the situation call for it.

To enhance the prospects of attracting the attention of organizations which would be interested in using the expertise offered by the home business entity, the individual would have to ensure the existing skills are impressive and adequate enough to suit the company’s needs.

Keeping up to date within the particular field, would help the individual better assess the current market trends, and thus be able to identify areas where his or her particular skills would be needed and appreciated.

As there are many companies now ready to outsource their work load, being visible in providing the relevant skills needed by the company would help the individual to attract contracts and other work opportunities for the home business set up.

This visibility will also help to create a present for the business entity for any future job opportunities.

Having a vision for the new business entity and wanting to achieve it within a desired time frame is always a good place to start when addressing the managing side of the said business. Hopefully this article has given you a start.

Save Advertising Costs by Measuring Advertising Success

Measuring the success of individual advertising campaigns is the most effective way to reduce advertising costs. By determining which media and formats work best, you can focus more of your budget on advertising that increases your return on investment (ROI) and cut the ones that cost you money.

Advertising ROI is the cost of the advertising campaign compared to the resulting gross profit on items sold. For example, if you spent $200 on radio advertising and you sold 20 items and each item retailed for $25 and you made a $10 profit on each item then your gross income would be $500 and your gross profit would be $200. Your ROI is 100%, which means you broke even on your advertising campaign.

This is perfectly acceptable because it didn’t cost you more money to advertise than the revenue the ad generated. If your goal was to increase sales, however, the ad is not quite a success.

If it turns out that your newspaper ad has an ROI of 150% it might be a good idea to allocate more of your budget to newspaper advertising.

As with all things advertising, to be successful you need to know your target audience. Experts say that they feel like a stuck record saying the same thing over and over again. But the truth is that if you don’t where and when to find your customers you’re going to waste your advertising budget. If you target your audience correctly then you should already be advertising in the media that bring you maximum ROI. It then comes down to measuring the effectiveness of individual ads.

An article on SkalaCreative.com says that you need to have before statistics to effectively measure the success of a particular ad. This makes sense; it’s very difficult to determine if sales or new customers have increased if you don’t have anything to which you can compare the figures. According to the article, you should determine, on average, how many clients contact your service business over a specific period (30 days is deemed long enough), or how many customers enter your store, or how many unique visitors your website gets. You should also take into account your sales or profits for that period.

Then you can run your ad and review the same statistics for the duration of the ad as well as a month after. This is because advertising doesn’t necessarily have an immediate effect, especially if your goal was relatively general, such as increasing sales or brand awareness, rather than selling a particular or promoting a sale.

Compare the before and after stats and you should be able to determine if a campaign worked or not.

This kind of measurement is somewhat indirect. There are more direct methods. For example you could send out customer surveys (which aren’t always reliable as people don’t always respond) asking how customers heard about you, which ads they found effective and which advertising media they prefer; you could also ask them these questions in-store. A more subtle approach is to include a coupon for a particular product in your newspaper ad, or give customers a discount if they tell you where they heard or saw an ad.

If you want to save advertising costs it’s extremely important that you track and measure the success of your ads. You need to cut what doesn’t work and exploit what does.

To assess the effectiveness of your advertising campaign, you can monitor sales, new customers, requests for information, phone inquiries, retail store traffic, website traffic, or click-through rates. Use these tactics to gauge the power of your ads:

• Use dedicated phone lines to track phone orders. For example, if you mention a toll-free number in your ad, assign different extensions to particular advertisements.
• Compare pre- and post-advertising traffic on your website. Your Web host logs the hits on your site and should be able to provide you with daily, weekly, or monthly reports. If you maintain your own Web server, invest in software that generates easy-to-read traffic reports.
• When advertising online, the old metric of click-through rates (the number of viewers who click your banner ads) is not a reliable method of knowing whether your advertisements are working. While ad networks that sell ad space on the Web track click-through rates and can provide you with performance reports, the numbers you really want to know are how long people are spending on your site and how many pages they are viewing per visit. That way, you will know whether you have truly engaged your clients. Of course, if they purchase something from your Web site, then you know you really did capture them.

The Finer Points of Internet Auctions

WHAT IS A PENNY AUCTION?

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

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

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

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

HOW PENNY AUCTIONS WORK!

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

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

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

HOW TO WIN!

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

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

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

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

HOW TO AVOID SCAM SITES!

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

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

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

CONCLUSION!

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

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

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

How to Find Great Live Auctions for Resale Items

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hiring An Auction Company

Estimating your assets value:

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

Compensation and Expenses:

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

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

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

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

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

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

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

Auction Expenses:

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

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

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

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

Buyer’s Premium:

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

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

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

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

Pre-Sales:

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

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

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

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

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

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


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