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.

The Basics of Home Based Business Opportunities

The internet today is awash with numerous home based business opportunities stretching across all conceivable niche markets. Before one can immerse himself in any of these online business ventures,it is mandatory that some research is carried out on the pros and cons of joining. This would minimize the potential damage or loss that can be incurred in future.You may be nervous to become involved in home based business opportunities because you have heard about the endless stories of people failing. It is a fact that majority of the people who engage in home business industry do indeed fail. You however need to establish why this happens.If you are searching for opportunities that will make you an over night millionaire, you are in the wrong place and frustrations will set in. Some people may not see results with their business instantaneously and this can lead them to give up very quickly. This may be the reason that so many people do not find great success with home based business opportunities.One must be ready for the hard toil necessary for online success. Under normal circumstances, you will harvest what you sow in your business. This is why it is imperative that you make sure that you are ready for this opportunity and you have the time it takes to grow and nurture your business. If you expect to sit back and do nothing with your business, you will not make money and this can cause your business to stall. You want to go out and get the success you deserve and not sit back and wait for it to fall in your lap because most likely this will not happen.You may want to look at several home based business opportunities and then look at the competition for this particular niche. This can make a considerable difference in your marketing and you may want to avoid opportunities that have a lot of competition. Some of the newer opportunities out there have less competition and are offering unique products or services and this may be worth exploring more thoroughly.When looking for a home based business opportunities you may want to do some research and find the best opportunities out there. You should never go with the first online business that you find, and taking time and doing this right can be the key to success.

Choosing The Best Home-Based Business

You are seriously looking for an additional income stream and you want to work from home. With the internet full of business opportunities, which one do you pick? Do you choose the one with the most income potential? Do you pick the one with the best opportunity or the best product/service? And do you choose an affiliate or a network marketing home-based business?

Listen, I am going to cut through all the misconceptions and lies out there and get right to the point. I hope this will make absolute sense to you. There are 4000+ network marketing companies today to choose from. There are thousands, no hundreds of thousands of products and services to choose from. If you are looking to work from home, to add an additional income stream to meet your families’ needs, then an affiliate marketing business with several products will certainly work faster. If you want to create generational income then network marketing is the ticket as this will involve building a downline, working with people who want your product/service as well as your opportunity. The best home-based business is determined by your interest and passion.

Many people get involved in the next best home business that promises great money, ‘get-rich-quick’, and no need to have any particular skills. Money talks… absolutely. However, you are best choosing a business based on the product or service. Ask yourself these questions:
1) Do you believe in the product or service?
2) Is the product or service viable; is there a real need for it today, and who would purchase it (besides yourself)?
3) Could you become passionate enough about the product or service to reach out and share it with others (other than family, friends)?
4) If choosing a network marketing company, then you need to consider the company’s credibility; how long has it been in business, and does it have a good, lucrative compensation plan? And
5) Are there guarantees with the product/service?

After considering these questions, then it is simply asking yourself if you want to sell purely product or are you vested in other people: i.e. helping them solve their pain or problems with the solution you have and working with them to help them be successful as well. Either way, you need to know how to:

1. Target your audience who needs, wants, and desires your products/services.
2. Position yourself so that these targeted prospects find you.

Now if 80% of people are on the Internet looking for that product or services, guess where you want to be found? Absolutely, on the internet! And you certainly want to know what you are doing. You need to acquire a skill-set… a proper marketing skill-set that involves creating an attractive website with relevancy to your product/service, that’s keyword-rich, and has a compelling message to get prospects to take action.

There are billions of websites out there today and many of them are purely informational or too lengthy or devoid of relevancy or a ‘call-to-action’. You can pay large sums of money to have someone else create your website, you can try to do it yourself and struggle; however, if you (have the advantage of support with a mentor) can learn under the wings of a mentor so that you make the least amount of mistakes and ultimately learn to do it yourself, then this is the best avenue. Invest in yourself because you are your best resource.

Choosing the best home-based business must first come from your core belief, your interest and passion to help others with a viable product (or service or information) and then have them finding you, the expert from whom they will ultimately purchase because you are solving their pain or problem. For an Affiliate Home-Based Business you will need to optimize the Internet and Copy (the power of the written word). For a network marketing home business, in addition to the internet and copy, you will need the telephone to prospect, present, and close business. Find your niche first, via the product, then you will have taken the first best step for a home-based business.


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