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.

5 Reasons Why Starting a Home Based Business Model is Better Than the Traditional Business Model

Starting a home based business is very different from the traditional marketing business. In order to understand the nature of both businesses we can make a smart comparison below. The five reasons why a home business model is better than the traditional business are listed below.1. Lower running costs and overheads: By starting a home based business making money from home is more convenient and needs fewer resources. To begin with an online business, you only need a computer and internet access. Traditional business need more resources and hard work along with a separate office or place to deal with your clients. It is very clear that setting up the traditional business, expenses involved are high. Where as, earning money from starting a home based business is inexpensive and needs no hiring of employees, paying insurance or paying rent for space or an office.2. Storage space: Starting a home based business only needs space for a system and internet connection as compared to traditional business that requires storage to keep substantial stocks of the products. This will also include rental of the storage space, money paid to the employee, loading and unloading of the boxes and stock, shelving and covering other logistical costs. Starting a home based business using affiliate marketing concept, the product is delivered to your customers through shipments from the merchants. Stock of any inventory is not required at all and this saves a huge cost again.3. Easy expansion of your business: An affiliate-marketer starting a home based business can easily set up multiple businesses. A substantial amount of money can be earned by working at various different niches. Once the website starts bringing in a regular income less maintenance will be required giving you more time to start another one. With a traditional business, you are generally locked into one theme and the logistics required to expand your business are not only complicated but also quite expensive as lot of money is required for the expansion.4. A bigger horizon: The advantage of starting a home based business offers a bigger horizon to earn money at an international platform. Not many traditional businesses manage to grow at a worldwide scale and most of them remain local to their marketplace. Online affiliate marketing is run globally because most of your buyers are internet users and purchases the products you are offering online.5. 24 hours / 7 days a week open for business: Even when you are sleeping or away on a day trip, you will be making money with affiliate marketing by starting a home based business. There is a learning curve to every business but making money online is much faster, cheaper and easier than traditional methods of business. Affiliate marketers sell products online in less than expected and short time span as compared to traditional off-line business in which the selling target is difficult to achieve and needs long time. Affiliate marketing business is open 24 hours 7 days a week and never shut down, therefore, it brings you more opportunities to have more clients to make more money than traditionally.

How to Build Your Internet Home Based Business

If you have already chosen the Internet business venture that is a good fit for you, now you have to learn how to build your Internet home based business to be a successful and profitable business.

You start building by implementing a targeted marketing campaign, performing effective search engine optimization and ensure you keep pace with the fast evolving Internet and information technology advancements. If you neglect to keep up with the latest and greatest advances on the Internet, the chances of success with your Internet home based business are limited.

You must understand that you need to have excellent work ethics, self-discipline and self-motivation to stay focused on business building strategies. Once you begin to practice those basic principles your travel on the road to independence and financial freedom will be much smoother.

Since there are several tasks involved to achieve success and you are working alone, you may become overwhelmed and the process will become slower. You can resolve this issue by working with a team; a group of like-minded individuals seeking financial freedom. Working with a team in building your business will achieve success easier and faster.

You may be asking yourself, but why a team?

When talking about a team, I am reminded of an anonymous prose and poetry titled a Lesson from Geese. Like geese flying in a V formation, people who share a common direction and sense of direction can get where they are going quicker and easier because they are traveling on the thrust of each other. In other words, working together to achieve a common goal; all for one and one for all should sum it up nicely.

Now that is team work people, pure and simple and you can apply the same to your Internet home based business for maximum effect. Everyone on the team will benefit from their efforts and support.

This concept of business building has been adopted by many and appears to be catching on as more and more people see the value of team work.

The bottom line is, your Internet home based business will indeed grow and prosper much faster and easier when working with a team of like-minded individuals.


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