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.

Profitable Online Home Based Business Ideas and the Recession – Why Most People Fail in MLM’s

In this article I would like to compare the success rates of a profitable online home based business and the average MLM. Most MLM’s don’t want the public to know that around ninety seven percent of individuals coming into their business will fail. Those are not very good statistics. It does not necessarily mean the MLM is a bad company. I believe it has everything to do with the marketing concepts and strategies of the traditional MLM.

If you compare marketing strategies of the average in-home online internet business to an MLM you will see a vast difference. The average person in today’s world thinks they are all the same. Nothing could be further from the truth. Having done both I can speak from experience. A great many of the most successful internet marketers have been involved with a traditional MLM at some time in their life.

I don’t mean to sound like traditional MLM’s are bad. It’s just that their marketing strategies in today’s world are wrong. I learned very valuable skills and concepts from a large traditional MLM. Skills and concepts that have brought me tremendous success in my online home based internet business. Having done both I can see now that the traditional MLM’s marketing strategy is all backwards. Let’s look at why that is.

Here’s an example. I’m sure we have all met or known that one guy who is so excited about his new “thing.” He shares it with everyone he knows. All the time. Whether we want him to or not! At times he may even have resorted to, let’s say shady tactics to share his business. He even cold contacted people in the mall or the grocery store or church to add to his name list. He may even have asked you for your friends and families names and numbers so he could contact them for you! We could go on but I think you get the picture. Is something in this analogy making sense to you? In a traditional MLM’s marketing system you have to be the hunter, constantly looking for someone who may be interested in creating their own business from home. There are a few things wrong with this concept.

First, there is only so much one person can do. You are “weeding” through people hoping to find a few who will duplicate what you are doing. More often than not those people you are “weeding” through are not interested at all in what you’re doing. So you have to keep weeding through your friends and family and if you don’t do it just right you quite often alienate people. Basically like a lion on the hunt always looking for your next prey.

Maybe that’s a poor analogy but I think you get the idea. Most people will become discouraged at this point and will quit. If they stay in long enough to sponsor a few people usually those ones will quit. The average person just has a hard time with rejection, so the retention rate is very low. Why not become the hunted instead of the hunter?

Wouldn’t it be much better to have people hunting for you and what you have to offer? That is the main difference between a profitable online home based internet business and the traditional MLM. When you build your business online instead of person to person there are a few major differences. First, when you build an in-home online business the whole world is your market place.

With the click of a button you can send an ad out to the whole world. Your ads, your articles and your website can work for you twenty four hours a day three hundred and sixty five days a year. You are reaching people and exposing your internet business while you are sleeping, which means you’re making money while you’re sleeping too. You cannot do those kinds of marketing strategies the old MLM way, person to person. The real beauty of online internet marketing is you are reaching people who are actually looking for something new in their lives. And if they are serious enough or interested enough they will contact you. The system you have built online will “weed” them out for you. You become the hunted.

This is what Charmayne and I have done. This is what so many others in the home based online internet industry have done. From my experience it is the easiest and most enjoyable way to build a business from home. Don’t just take my word for it. Search it out for yourself. There are many others who have done this too. Read their stories. If you are tired of the rejections from the MLM way you owe it to yourself to try something new, something that really works. Take a step of faith, take that step today. You can do this too. We believe in you!

Our desire is to help the average person to create their own profitable and successful online in-home business. Take the first step and get started today by going to http://EZIncomeNow.com.

Top Home Based Business – The Best Way to Work From Home

Most people would love to work from home. Well most people would love the idea of what working from home is and what it gives you. That is, time flexibility, financial freedom, being your own boss, working your own hours etc.What however, stops most of us, is the fear to take that leap of faith or find the right business for us. We want to find the top home based business but where do we start? So we keep meandering along the current path where our financial and lifestyle dreams elude us.The problems with working from home can be vast, high risk, arranging office space, etc. The list can go on and on, and let’s not forget the money side of things. Most small businesses costs thousands to start up and working from home may mean you need to rearrange your house and pay thousands in inventory costs. Finding that top home based business is tough.I spent a lot of time researching to find that top home based business. My aim was to find a business that provided me with the ability to work from home, yet not having to risk quitting my job while I start it. I wanted a top home based business that allowed me to have small start up costs, but still provided me with huge earning potential.I then stumbled upon a world renowned financial author Robert Kiyosaki. His book Rich Dad Poor Dad won the New York Times bestseller. He explained a very important concept called the cash flow quadrant – the very first tool I used to help fine me that top home based business.He explained that people were in four categories. The Employee, The Self Employed, The Investor and The Business Owner. Basically, the self employed although their own boss, trade hours for dollars and if they take a break from their business so does the money from their pockets. The employee is the same, trading hours for dollars and working for the boss who earns all the money. The investor, well there is huge potential there but you need a lot of money to make money. The real system that works for you is business. He explained having a system that allows you to work less and still earn great money is where you can really become rich.I had to be on the B side of the quadrant. I had realised that a financial expert had basically pointed me in the direction of a top home based business. The answer was in that B quadrant. I did some more research on the author and realised he endorsed Network Marketing.Network marketing really is the top home based business, with little start up costs, an ability to contribute as much time as you like, great earnings potential, no risk and the ability to obtain your desired lifestyle. There is no competition like in a corporate hierarchy and everyone helps each other succeed. They key with network marketing companies is to do your research! Find the best company. The one that pays you well, rewards you for your efforts, is very team orientated and has a wonderful product.


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