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.

3 Reasons Why Home Based Business Entrepreneurs Fail and Why They Succeed in Their Corporate Job

People start a home based network marketing business for many different reasons. One of the most popular reasons is to be able to control their own destiny and run their own show. They are convinced that they can do it better than the idiots they work for in their job and if given the opportunity, they will outsmart, outwit and be more successful working on their own. That is probably true for the most part, people are usually smarter than the boss they report to at work and they usually have more potential than what they are currently using or demonstrating in their work each day.

The question needs to be answered then; why do so many bright, intelligent, hard-working people fail in their quest to run their own show and build that dream of being their own boss with their home based business?

Here are three reasons from my own experience and observation that I believe cause people to fail in their home based business and succeed in their daytime job.

#1 Hard Work, Discipline and Structure:

What? hard work…you might be saying, “I work hard”, and I agree, you probably do work hard…at your job, for your job boss. Are you working hard at home? For the “You boss”? Really? Are you?

I know how tough it is to work hard at a job all day, come home and be mentally, emotionally and sometimes physically tired and then say… “ok, let’s go to work on the home based business for the next two – three hours”.

Or to get up extra early and work on your business before you go to your job.

The fact is: Most people work 40 + hours in their job, for their boss, yet during the free time they have to work on their home based business and get themselves out of the job they don’t like, they sit home and screw off – they sleep in. It’s funny that we get up early for a job five or six days a week, yet we sleep in on our days off when its our time to go to work in our business. We get up for our job/boss and we sleep in when we are the boss! At our jobs, we arrive on time, take our allotted breaks and lunch and work until quitting time. What do most home based business entrepreneurs do? They start late, take long breaks, go to the gym, rationalize that its OK to mess around today, surf the web, cut the grass, run errands and say to themselves…” there is always tomorrow, no big deal” and little do they know, they are sowing the seeds of their own future business failure. In a job, we have structure and routines which actually feed our success on the job and keep us busy making other people rich.

#2 Inability to keep a work schedule and have a positive /encouraging environment which promotes mental and emotional harmony:

In most jobs and work environments, things are usually, for the most part, supportive and somewhat allow you to focus in on your work that you have to do for your job. A big thing I see which causes people to fail in their home business is they are too distracted. They think that because they are home, they can start work when they want, work and watch tv and do the laundry and watch the kids and check their Facebook and text message their friends while they work. Most jobs obviously don’t allow you to do those things at work while you are on the clock (again – why you are successful in your job) yet many people who have a home based business think they can succeed in this type of distracted, unstructured, low productivity, drama filled environment.

#3 – Their “Why” is not strong enough. You see, generally, for most people, their “why” of why they go to work is stronger than their “why” for their business. I say that because for most people, they need their job to pay the bills, pay the mortgage and put food on the table. The business to them is a hobby where they really don’t see it as this very important resource that provides income. In order to work from home, before or after your job, your “WHY” – your reason for doing your business has to be so compelling, specific and clear that it causes you to be disciplined, work hard, use your time well and create a supportive structure which allows you to be productive and build a successful business.

Free Home Based Business Leads – Are You Getting Them?

Free home based business leads. Every online marketer knows you gotta have them, particularly when you’re just getting started and especially if you don’t have an endless supply of money for marketing your home based business. But what’s the best way to find them? Ah…that’s the question every online affiliate or mlm business owner desires the answer to. Do you have the answer to that question? If not, or you just want to pick up some extra tips, than this article is for you.

In reality, there are quite a few effective methods for generating free home based business leads at the time of this writing, so I’m going to share a few with you here. But keep in mind, when it comes to attracting home based business leads on the internet, the rules of the mlm lead generation game are always changing, and sometimes they change fast. That’s just the nature of the internet…constantly new and better methods being developed all the time.

That leads me to your mlm lead generation system that you are currently using. You are using one, right? Your best bet for being able to stay in the game until you create that incredible mlm income is to use a system that instructs you on how to consistently generate free home based business leads that come to you, how to turn those targeted leads into prospects, how to monetize those prospects with your system’s funded proposals, and then lastly, how to get a percentage of those prospects to ask you about your online mlm business.

As I previously mentioned, things change quickly on the internet, so mlm lead generation strategies that work really well today may not be as effective a few months from now because so many people are using them. That’s why it’s so very critical that the mlm lead generation system you use constantly provides you with training on the newest cutting edge strategies to keep your free home based business leads coming in on an ever increasing basis.

Keeping that in mind, here are some of those strategies to begin generating home based business leads right away. You’re most likely familiar with some, if not all of these techniques, because a lot of folks are successfully using them. However, there are “tricks” and techniques you can use that will provide you with an advantage, but I’m afraid that would involve a lot more room than we have here right now. So here are the basics of a few of those strategies.

Blogging. Blogging has been around for quite a while now, but done right, it is a great way to develop your reputation as an authority on your niche so that people will be drawn to you. The system you use should provide you with step by step instructions on how to get started with your own blog, how to incorporate your system’s funded proposals into it, and how to effectively promote it. This is not the fastest way to start generating free home based business leads, but using it with and promoting it with additional lead generating techniques is a great way to brand yourself as a leader (which people are attracted to) and is great for the long haul too. Google loves good content blogs! Just make sure you are providing lots of valuable niche specific, keyword optimized info on your blog and not creating a huge blatant sales page.
Article Marketing. Article marketing is a terrific way to generate lots of free highly targeted leads. The more keyword optimized articles you write on your best niche topics, the more exposure you will enjoy. If you create articles that provide valuable content for your readers and use the author bio to point them back to your content-rich blog, you can generate lots of free home based business leads for years to come.
Social Media Sites. Social media sites like Twitter, MySpace and Facebook provide a fabulous way to connect with millions of people online. However, there is a correct way and an incorrect way to use them. The mlm lead generation system you use should provide training on how to effectively use these sites to build relationships and network with other like minded people. This is an excellent free resource for generating home based business leads that everyone should be using.
Video Marketing. Video marketing is an extremely valuable asset to add to your mlm lead generation arsenal. It’s simple and yet highly effective, and is a method that can generate free home based business leads very rapidly. Your system should provide training on the most effective ways to use video marketing to promote your blog, your articles, and well, simply put, You. If you’re not making use of video in your marketing, you may be losing out on the 6 out of every 10 people online that are watching video!
Pay-Per Click Advertising. PPC is probably one of the most effective mlm lead generation strategies on the entire internet at present, but I left it for last because you must have a marketing budget that will last several months to truly use this effectively. Most people starting out in internet marketing don’t have the money for this. However, once your funded proposals start generating some consistent income, I would highly endorse utilizing this method. Your system should provide training on how to use PPC the right way, and when you do, it can literally begin generating free home based business leads in a matter of hours of writing your ads!
Now this is in no way a comprehensive list for generating home based business leads, but it offers an excellent place to start. Forum posting, niche-related blog posting, etc. are a couple more ways you can get backlinks to your blog and increase your search engine ranking. The list goes on…

Bottom line, there are several effective mlm lead generation strategies you can make use of to attract targeted free home based business leads to your site or lead capture page and put you on the fast track to the mlm income you’re dreaming of. Of course, how you process your leads after you get them is a whole different story that we’ll have to save for another time. Until then, keep it real, and keep taking action!


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