« Older Entries

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Tags:

10 Ways Network Marketers Can Use Resell Right Products to Generate Leads and Sales

The resell right product marketplace is a cornucopia of marketing knowledge and tools that can benefit anyone selling products and services online or offline for that matter. Direct sellers, affiliate marketers, eBay entrepreneurs and network marketers can all benefit tremendously from these products. However, my specific intent as the title of this article suggests is to focus on how network marketers can benefit from resell right products. My reason for this is due to the fact that there is a high degree of dysfunctional training prevalent in the network marketing industry which contributes to an appallingly high failure rate in excess of 80%. I know this from personal experience because I started out as a network marketer and wasted a lot of time and money using outdated recruitment methods that were painfully ineffective.

Through the use of resell right products I was able to create fully automated lead generation and sales systems that literally cranked out leads an sales while I slept! It really is a wonderful feeling to turn own my computer in the morning and see that I have notifications of new leads and sales without ever having to deal with a lead broker or call someone on the phone and deliver a sales pitch. Next, I’ll give you a brief overview of the resell right product industry and afterward share specific ways network marketers can use resell right products to accomplish exactly what I’ve just described.

Resell right products have been in circulation on the Internet since the early nineties and have been a powerful and profitable marketing tool for those savvy enough to harness their full business building potential. These products exist in a wide variety of forms such as eBooks, reports, graphics, web site/blog templates, videos, audios, scripts and software. The products most commonly exist electronic media formats but may also be rendered in printed paper format. Authors who are highly skilled at creating such products profit by selling them to others along with the right resell the products and retain all proceeds from the sale. Although I generically apply the term, resell right, to these products, they are often conveyed with other types of redistribution rights specified in a licensing agreement as follows:

1) Giveaway Right – The recipient obtained the product for free and has the right to freely distribute it to others but not sell it.

2) Personal Use Right – The purchaser can use the product but not resell it or give it away for free.

3) Master Resell Right – The purchaser of the product has the right to resell the product along with the right to resell it. This differs from a simple resell right scenario in which the purchaser can resell the product to others who can use product but not resell it.

4) Private Label Right – The purchaser of the product legally has to the right to place his name on the product and claim it as his own creation. The purchaser can sell the product with simple resell right, master resell right or just personal use right.

There are more variants of usage rights but this list should give you a basic understanding of the concept. Of the redistribution rights described above, the fourth is the most valuable because it offers the most flexibility for marketing. By nature these redributable products are quite prolific and if you have ever subscribed to a newsletter based on an offer that included a free bonus such as a report or eBook, there is a strong probability that the product you received originated as a resell right product. Now lets explore in depth, 10 ways you can benefit from these products.

1) Web Presence – Every network marketer needs a powerfully compelling web presence to effectively generate leads and sales. Unfortunately too many networkers erroneously believe that the replicated web site provided by their companies is all that is needed. As beautifully designed as those web sites may be, they possess two major weaknesses. First, they lack uniqueness as every associate web site is identical. Second, the sites are not customizable with the exception of being able to add a photo and a phone number. Therefore it s impossible for an associate to distinguish himself from other associates in the same company in any substantial way by using a replicated site alone.

By using web site or blog templates that are readily available in the resell right market place a network marketer can easily create a unique web presence that will enable him to rise above the crowd by showcasing his unique selling proposition and sharing information that will allow visitors to relate to him on a personal level. Marketing studies have proven that people conduct business with those they know like and trust and a personal web site is critical for establishing trust and rapport. In the resell rights market place there are web site/blog templates and graphics collections for every conceivable marketing niche. By choosing the right template and customizing it, a powerful web presence can be established much faster that it would be possible by starting from scratch.

2) Squeeze Pages – Once a web site is established one or more squeeze pages can be integrated. A squeeze page also known as a lead capture page is a simple page the presents some compelling information designed to get a visitor to leave their contact information so that additional marketing information can be delivered. There are tons of squeeze pages and lead capture tools available in the resell right product market place. I obtained one of my favorite and most effective squeeze pages from a resell right product package over 5 years ago that cost under $30. The page is about the size of a computer screen with text areas for a title, some bullet points, a small blurb, and a video. I customized the page for a few marketing niches and it has been responsible for generating many thousands of dollars in income and I’m still using it today.

3) Incentives – Everyone likes to get free stuff which is the reason you see the word, free, commonly used in advertisements for all types of products and services. If used correctly, incentives or giveaways can be a powerful factor for generating leads and closing sales. One common marketing technique for increasing the effectiveness of squeeze pages is to offer a free bonus bonus report or eBook in exchange for contact information. So where would you get a high quality product for little or no cost that could give away for free? Well if you guessed, the resell right product market place, you guessed correctly! Freely giving away a quality product helps to establish good will, trust and evoke the law of reciprocity. When you give something to someone they often feel obligated to give you something in return. That “something in return” could be giving your offer extra consideration over that of a competitor which results in a sale for you!

4) Autoresponder Content – Marketing studies have revealed that a person typically needs to be exposed to an offer 5 – 7 times before feeling comfortable with making a purchase. The autoresponder is the perfect tool for steadily exposing a potential customer to the information needed to make a purchase decision via a strategically crafted set of email messages. If you are unfamiliar with email marketing, the task of creating an autresponder followup series can seem daunting.

Fortunately, within the resell right marketplace there are prewritten autoresponder message series covering a wide variety of niches that can be transferred into any autoresponder service giving you an effective autoresponder campaign in a fraction of the time it would take you to create one from scratch. Once your initial autoresponder campaign is setup you can easily customize the messages with affiliate links and add more messages if you want. Then you can integrate a squeeze page and subscription bonuses like a free eBook or report to make it more robust.

5) Sales Pages – A sales page is strategically written to close a sale by appealing to a prospect’s sense of logic and emotion to induce a purchase decision. A sales page is roughly equivalent in principle to a sales pitch script that a network marketer might obtain from their company, however it is far more powerful because once it is written and tested, it can literally close sales automatically. If you have ever purchased a product or service after reading a sales page then you have experienced its power. Expert sales page writers can easily charge thousands of dollars to write a single sales page. Fortunately, you don’t need to be an expert to create a sales page that is effective for your purposes. Most resell rights products are packaged with a sales page designed to sell a specific product. By examining a few resell right product sales pages and familiarizing yourself with their structure and style you can choose one related to your marketing niche and customize it to crank out enrollments and sales for your business.

6) Traffic & SEO – There are many resell right eBooks and instructional videos available from which you can learn the fine points of traffic generation and search engine optimization (SEO). In addition, you can find content-rich search engine optimized blog templates that can be quickly and easily installed with a web hosting service and modified to suit your needs. Remember, it is much easier to modify something that exists than it is to create something from scratch. This is how leveraging off of resell right products saves time and effort.

7) Self Funding Proposal – Wouldn’t it be nice if you could get people to pay you up front to take a look at your business opportunity? This can be accomplished by using a resell right product as a template to create your own product that is embedded with advertisements for what ever you wish to promote. This can be done very effectively with an eBook. Create a sales page for the eBook combined with with some other quality products as bonuses and sell it as a package. The proceeds from sales made from selling the product will defray your advertising expenses and quite possibly result in a profit if you have a finely tuned advertisement campaign. This technique works very well with any form of paid advertising such as per-per-click search engines.

8) Direct Selling – Take a resell right product and sell it directly to generate income. This is after all, is their main purpose. As I mentioned earlier, most resell right products include a sales page. They may also include a squeeze page and autoresponder messages that are ready for use after being set up on a web server. Although a resell right product may be sold as is, it is always best to modify the sales materials to add a bit of uniqueness to distinguish yourself from other marketers who may be selling the same product.

9) Multiple Niche Marketing – With resell right products it is very easy to branch out an explore the profitablility of marketing niches other than that of your primary business. Here is an example based on my own experience.

One day a saw an ad for a dating affiliate program that intrigued me so much I decided to join it although I had no experience with the dating niche. I searched my hard drive for some dating related resell rights products I had downloaded in the past. I chose the best one to test and installed the prewritten squeeze page, sales letter and autoresponder message series onto my web server and linked it to a new domain name. I customized the materials a bit just as I have recommended in this article. To quickly test it I setup some pay-per-click ad campaigns. The results shocked me! I was stunned at how easy it was to generate regular and predicable income in the dating niche. The success I experienced inspired me to setup sites in other niches some of which include, pet rescue, natural healing, and self-defense. I would never have done this if had not been for the availability of resell right products for these niches.

10) Education – The authors of resell rights products are very adept at staying current with the latest trends in Internet marketing so that the products they create will be in high demand. You can learn a lot about all aspects of marketing by studying and applying the in information contained these products.Remember, knowledge is power!

I hope that this article has given you a solid foundation of information upon which you can leverage off of resell right products to grow your own business. In actuality I have given you much more than a list of ways to use resell right products. I have given you a blueprint for automatically generating leads and sales. You don’t need to be a “computer wiz” to use these products. All you need is basic computer skills like reading, typing, copying, cutting, pasting uploading, downloading. That’s all! What I’ve described may seem like a a lot of hard work but it is really not. Of course effort on your part is required but all of the hard work was done by the people who created the products. All you have to do is profit from their effort by using them.

Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

Tags: