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.

Success in the Home Based Business Industry

Success in the home based business industry is a process and not an event. Even those seemingly overnight successes were anything but. It took months-maybe even years-of preparation, hard work, and determination to make that home based business work. To the outside, it looks as though the success happened overnight, but it truly never does.So why do people persist in thinking this? It’s the downfall of living in a microwave society! We are used to having things fast and easy-not necessarily high quality, but that’s another story. We can log on to the Internet at any time and find anything we want. There’s instant movie on demand ordering, drive through meals, ATMs in case we need cash at midnight.This has effected how people view success in their home based business. They expect to start today and be rich tomorrow. Anyone call tell you that doesn’t happen.In fact, the expectation of instant success is so powerful that people will just dive into an MLM home based business opportunity with no parachute-no alternative means of supporting themselves until the business takes off. When overnight success doesn’t happen in their home based business, they decide to quit.The real problem is that they didn’t do their due diligence to choose a better business model-a model that could help maximize their earning potential with fewer headaches.You see, a home based business is just like any other business. It has to be sustainable; it has to have a large enough target market willing to pay the price of the product or service; and it has to have an effective way of marketing the product or service to the target audience. Check it off your list: If the home based business model you are looking at doesn’t have all three of those elements, it’s not going to work, trust me!You also need to look at volume of sales in your home based business. If the product is priced low, you are going to have to sell a large volume to have any hope of making money. If it’s priced high, you don’t need very many sales to sustain your business.Once you do find the right home based business opportunity, you need to put in the work. Don’t just slap up a website and think that customers will blow your doors off. You need to build a brand and make it visible and compelling to qualified prospects. And guess what? This takes time. Success is a process-not a one-time event.Look at Donald Trump. After his first success, did he stop? Absolutely not! He kept going, kept building new properties. He didn’t stop there, either. He signed on for the TV show. He kept going! To this day, he is still releasing books, still building his brand. He knows that success is a process, not an event.Test this out for yourself. Find a successful person in the home based business industry. Ask them what they think-was their success a one-time deal or an ongoing process? I’m betting 10 out of 10 will tell you it’s a process-and you can never quit. When it comes to success, there is no finish line! Join a community of successful entrepreneurs who are creating substantial monthly profits in record time by using this Successful Business System!

Starting An Internet Home Based Business – Five Common Mistakes To Avoid

Many people who would like to start an Internet home based business have no idea of the best way to get started. Starting an Internet home based business is definitely exciting but the experience can also be overwhelming. There are vast numbers of Internet home based business opportunities available and researching just a few likely looking ones, can result in information overload.

You can easily succeed with an Internet home business opportunity if you avoid these five common mistakes when starting out.

So what are some of the most common mistakes that people who are starting a home based business can make?

1. Failing to plan and set themselves goals.

Starting an Internet home based business without making a business plan which includes budgets is the first step towards disaster. Having step by step goals and a plan of how much is to be spent at each stage is vitally important. It is essential to know what you want to achieve from your business and how much you intend to spend on start up and ongoing promotion.

2. Failing To Follow A Proven Business Model

There is no need to act like a pioneer in the Wild West when you are starting your home based business. There are any number of examples of proven money making business models on the Internet. Duplication will enable you to succeed with your Internet home based business: find someone who is in the position you want to achieve and duplicate what they did to succeed. If you join a turnkey Internet home based business opportunity, you will have access to training material which will show you exactly what steps you need to take to achieve success in your home business.

3. Falling for a get rich quick scheme

Don’t think starting an Internet home based business means you will get rich overnight. This type of unrealistic expectation is one of the biggest reasons people give up soon after starting a home based business. Getting any business into profit mode will take a certain amount of time, and an Internet home based business is certainly no exception.

4. Falling For The “Free” Myth

If you believe you can have a successful Internet home based business without making any financial investment, you are heading for a grave disappointment. There are many valuable free resources available online but expecting to start and develop a serious Internet business with out any outlay is simply not realistic.

5. Giving Up Too Easily

Your two best friends when first starting an Internet home based business will be patience and persistence. Actually, come to think of it, those two will remain your best friends all the way to reaching profit mode and beyond. Becoming successful with an Internet home based business will take time and you must be prepared to exercise patience while you are working towards your goals. You also need to use persisence when working at promoting your business because there are bound to be tasks that seem boring to you.


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