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.

You Too Can Make Real Money Online So Start Your Own Home Based Business Today (10 Top How To Tips)

Do you too want to enjoy earning cash from home? My top 10 “how to” tips will get you started successfully today!

How to start your own home based business and enjoy earning extra cash online!

First I want to tell you that yes, you can make real money online and enjoy earning extra cash from home! There are many home based businesses you can start today involving the internet – read my top tips for fast track success!

More people than ever are shopping online because it is fast and convenient, you have a world of choice, and the more people who do, the more people will want to, since we all like to be trendy! The challenge which faces you if you want to start earning cash at home is simply deciding which niche market to target and what to sell to those people.

Many people search every day online to solve a problem they have quickly, perhaps because they do not have time to access a local solution from a nearby store, perhaps it is not a common problem, or perhaps it is an embarrassing problem so the less people who know about it the better: you know there are some items you might blush to walk into a store and ask for – you can save the embarrassment by purchasing online!

So you might want to target one of these niche markets, whether it is hair removal products, an acne cure, birthday presents, weight loss solutions, relationship advice, or whatever you feel people are searching to buy online. Or you may already know a niche market which you can sell to online: suppose someone in your family has a shop selling handbags or golf equipment or dog biscuits, then you can sell these items online to provide more profits and take a commission for yourself.

You may even have a business already which you want to promote online for wider sales. Start a blog about your service and get the news abroad!

Whatever you enjoy, or know about, or want to help people with, you have instant access to a worldwide marketplace by trading online.

10 Top Tips How To Enjoy Success In Your Own Home Based Business Today

#1 Get into the right frame of mind to start up and be successful from the very beginning! Clear a special space at home for your computer, your note paper, your records and accounts, your telephone and anything else which you need to run your business smoothly. One of the great things about earning money at home is that you need very little space or equipment to begin! Talk with some people who have already had success selling online and ask them for tips and encouragement.

#2 What time are you going to set aside to work on your new project? Many people have started out selling on their computer with barely an hour to spare each day, in between their day job and busy family home life: it’s the desire to free up more time which drives these entrepreneurs onwards to success! So be sure to set a definite daily or weekly time to work and keep to this schedule without running over into your leisure and family time.

#3 Make the most of your work schedule by creating a weekly to do list and tick off the action steps you aim to take as you go. Avoid being busy for no purpose: just take the steps you need to in order to run your business smoothly. Reward yourself at the end of each week for keeping on schedule!

#4 Keep a journal of brief notes to record what you did each week and the results you got and lessons learned. Keep all your important contact details handy, written down, and not just on your phone or computer: it’s vital to back up all your business data for instant access.

#5 Take regular breaks between 5 minutes and 30 minutes, depending how much of the day you are working for: you need plenty of fresh air, stretching, and fresh cool water to remain efficient, but you also need to analyse your performance constantly to save getting distracted. Keep on track by taking note of what you are doing and comparing that with what your to do list reminds you that you should be doing!

#6 Be aware of what expenses you can claim to offset against taxation once you get the business running properly. If you require a vehicle for business use you will be able to offset running and depreciation costs; if you use stationery and technical equipment, these costs can be defrayed too. Ask your local tax office to help you understand what items can and cannot be claimed for. It makes good financial sense to employ a book keeper or accountant since they will easily be able to save you yearly in your business the fee they charge and you won’t have the worry of keeping all your records and paperwork in order yourself.

#7 Beware of getting into a rut. Keep reading the news regards your industry and the market you serve: what do people really want? What new developments are taking place? You need to look ahead to remain cutting edge! Be flexible and consider what you can do to keep up with the trends! Always seek new solutions and be ready to change suppliers as and when the circumstances dictate. Check what your competitors are doing.

#8 So many people worry about going into business for themselves because they fear the competition will be too great. Avoid any market that has no competition: there isn’t any money to made there, because if there was, people would already be selling to that market. Remember that your competitors are your greatest allies: work out joint venture agreements together so you can provide your customers with ever better service and convenience. Don’t aim to monopolize the marketplace: there’s room for more sellers! Strive to offer your customers a constantly improved service.

#9 Make a good team for your business! It is easy to feel under pressure because you are isolated at home working on your computer. You may be working for yourself rather than employed in a busy company, but nevertheless, your business will grow strong with the best associates. Spend a little time each month talking to your bank manager, your accountant, your webmaster, your top suppliers, your best clients, in fact anyone who plays a crucial role in the profitability and running of your business. Be open about your plans and involve your people skills.

#10 Whenever something new takes place in your business be sure to tell the world about it! There are several excellent press release websites online where you can write the latest news about your service. You can tell bloggers about what you offer, and keep your joint venture partners up to date too. No point hiding your light under a bushel! You want to appear trendy and busy with exciting new developments and cause buzz amongst your customers and everyone who services your business! Be the first person people think of!

So what business will you start, armed with these tips?

Aim to provide a hungry market with good reliable solutions in a field you enjoy. Ideally the problem is solved with a repeat purchase: you will make much more money by selling a subscription with recurring payment because you do the marketing work once and get paid many times over.

One of the most popular ways to earn money with your computer at home is through affiliate marketing where you connect buyers with a great product that solves their problem for which you receive a commission of the sale price.

By promoting products as an affiliate you need hold no stock, do a minimum of paperwork, contract with a few reliable suppliers, and change to a more popular product instantly with no loss to your base line.

For physical products you might consider becoming an Amazon associate: you can point the buyer directly to the product through your blog or marketing materials. You will achieve a huge profit margin with downloadable products, especially those with recurring payments, often referred to as continuity programs.

Because you need hold no stock you will be able to target several different niche markets if you wish to. Research what people are searching for and match a high converting product to their needs. The internet provides us with a global selling opportunity twenty four seven for the lowest marketing costs imaginable!

Many of the traditional barriers to making a profit are removed for you online, especially if you choose to become an affiliate marketer. You may also achieve success by selling advertising space on your popular blog, freelancing online, buying and selling through third party sites such as auctions, promoting your local services via video marketing, using classified ads, writing ebooks, completing data work for a contractor using your computer at home, or promoting local businesses using websites, online marketing, social media and search engine optimization.

Yes, you too can succeed online!

Be forever interested and learn new tips every day. The internet is the world’s information super highway and content and tips are now the global currency!

Whatever you decide to go for, be assured you can be a great success provided you keep to schedule, keep organized, research new developments, be a pleasing helpful person, and connect problems to solutions. Be positive and enjoy what you do. Evaluate your progress and be flexible to make changes as and when you need to. Our online experience is rapidly fluctuating so be a trend setter and keep up to date.

Offer good solutions and build extra value into your offer so you stand out from the crowd. Add relevant and valuable bonuses such as eBook reports to your offer and give discounts to repeat buyers. Treat people as you would wish to be treated if you were the customer! Build a list of satisfied buyers and offer them further solutions, discounts, coupons, and good value.

Follow all these tips and your customers will love you! They will socially engage and the word will spread like wildfire that you are the person to do business with! I wish you every success!

If You Are a Real Estate Investor You Must Continue Your Real Estate Education

With all things that are done intentionally as a real estate investor your education comes first. A real estate investing education is primary to your success in business, and in all circumstances there is an identifiable pattern of learning that leads from thought to action. When experiencing something new, first you hear about it or learn of its existence. Next you learn what it is. Then you learn how it works. And finally, you practice it, which is where experiential learning begins.

This article is intended to discuss education, separate from experiential learning (but a little more on that below). Your real estate education should not be looked at as a phase you go through, but rather as an ongoing process. This is a requirement to stay in the real estate business and to excel. There are at least three very good reasons why your real estate investing education should be continuous and ongoing. One is that having new information can allow you to improve the process of what you’re already doing, so that you can do it better. Another is that having new information can allow you to do new things that you’re not already doing, such as implementing new profit centers in your real estate business. A third is that the world is always changing so that knowledge needs to be continually updated to be useful.

The fastest way to develop yourself educationally is to actively seek out as many sources of education as possible on a continuing basis. There are three common modes of education to be aware of that can help inform your search. One is private education that you digest on your own, which can include books, audio recordings, video recordings, websites, and online and offline real estate investing newsletters. Another is participatory education, which involves some sort of interaction with an educator, and can include seminars or boot camps, conference calls, and webcasts.

Yet one more is hands on education, which can be gotten by working with others already in the business. This could take the form of a mentorship or an apprenticeship with another investor. You could also take advantages of all the resources of a local real estate club, either online or offline, which is dedicated to helping investors further their education in all sorts of ways. As an ongoing business activity, your real estate education deserves management and balancing against the other ongoing activities of your business as well as all of the other demands on your time.

You should work it out however is best so as to ensure that a dedicated portion of your time and resources on a regular basis go to furthering your real estate and business education. A final word on education from experience, or experiential learning, comes last. Education can be overrated by beginning real estate investors. While it does have a large role to play in your overall progress and success, the amount you actually learn from studying educational materials is negligible compared to the amount you learn from actually performing an action or having an experience.

Keep this in perspective if you feel paralyzed by an insufficient real estate investing education.


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