The Big Squeeze – The Coming Crisis in American Higher Education

Most Americans already know that a crisis is happening in American higher education.

Tuition costs are surging, putting a college education out of reach for many Americans. College grads are defaulting on college loans. They cannot find jobs in the fields they trained for.

Those trends make the news every day. Yet they are only the most visible signs of deeper troubles that threaten to destabilize American higher education in the coming years. Let’s take a closer look.

Coming Crisis: Colleges Will Price themselves Further and Further Out of Reach

According to the U.S. Census, the median income of U.S. households in 1970 was $8,390. By 1989, it has risen to $28,910. And by 2005, it was $46,326. Those figures indicate that Americans today are earning about 5.5 the salaries that they earned 40 years ago.

How much have college costs grown? According to the Congressional Budget Office, the average yearly tuition at a four-year public American university in 1970 was $480. The average tuition at a four-year private college or university was a lot higher, at $1,980.

Today, according to data from The College Board, tuition and fees at four-year state universities currently average $7,020 per year for students who live in- state, and $11,528 for students who live out of state. And private four-year colleges charge an average or $26,273 per year in tuition and fees.

So tuition costs are rising at a rate that far outpaces the growth in income of the typical American household. While income has grown by a factor of 5.5 in the last 40 years, the cost of attending a state college has increased by a factor of 15 for in-state students and by a factor of about 24 for out-of-state students. And the cost of attending a private college has increased by a factor of more than 13.

And colleges are planning tuition increases for the coming years. It’s the big squeeze. For many American families, the dream of sending a child to college is slipping even further out of reach.

Crisis: American Colleges Will Close

Endowments at American colleges and universities have dropped dramatically during the current economic downturn. At the University of Delaware, the endowment shrank by 24.8%. Gettysburg College lost 25.3%, and the list goes on and on.

Top-tier, well-funded institutions will weather the crisis. But a growing number of smaller American private colleges and universities are already finding it difficult to attract enough tuition-paying undergraduates to keep their doors open. With increasing frequency, these schools are making their troubles known.

There’s another reason that colleges are in trouble. With the lack of jobs awaiting graduates, it is difficult to convince many American families that it is really worth paying $30,000, $40,000 or more a year to earn a college degree.

Crisis: American Students Will Be Unable to Train for Available Jobs

The days of the English major, the philosophy major, and the general studies major may be numbered, as more students seek training for jobs that they can actually find after graduation. They are training as medical technicians, computer programmers and air conditioning technicians. Yet just as students are looking for practical training, the sources of that training are harder to find, for a few reasons.

First, community colleges are no longer offering as much practical training as they once did. To attract more students, many have modified their course offerings to become more like private institutions. While President Obama has pledged to invest heavily in community colleges and upgrade their training programs, the changes are long overdue.

Second, for-profit colleges and universities are in trouble. A number of them are being investigated right now by Congress because of shady recruiting practices and abuse of government programs for funding higher education. It seems likely that a number of for-profit schools will shut their doors.

The result? American students will find it harder to find schools that offer the practical training they need to secure jobs.

And we all know what can happen when a country’s workers are under-trained, compared to workers in other countries. The result will likely be further damage to the American economy and business.

What Will Save American Higher Education?

The trends outlined above are grim. Yet the situation is far from hopeless. A number of positive trends are at work that point to the possibility that American higher education is not going away, but simply changing.

* America still has the strongest educational infrastructure in the world. We simply have more colleges and universities than any other country. Many of these institutions are already reinventing themselves by offering distance learning options, three-year degree programs and other incentives for modern learners.

* Americans’ desire for education remains strong. With so many of our citizens hungering for learning, there is ample incentive for colleges to develop new learning options for them.

* The timeline of education has changed. More Americans are returning to college at all stages of life. The result is that a larger pool of Americans who are interested in higher education.

* Distance learning is moving into the forefront of American higher education. As Bill Gates predicted on August 9 in his talk at the Techonomy conference in Lake Tahoe, it is already possible to deliver a college education over the Internet for as little as $2,000.

In the end, we predict that American ingenuity will not only survive these crises, but turn America into a new kind of community of learners.

Does Any Home Based Business Really Work?

After spending what can seem like a very long time, and sometimes quite a bit of money, you might be asking yourself: “Does any home based business really work?” Of course the answer is “yes,” but it sure can seem that none do. Why don’t we look at some clues that should let you feel pretty good about knowing very quickly what you should avoid.

First, if you look at an opportunity where you are being promised the world for one up-front price that seems pretty expensive, you might want to reconsider. Why? Because an opportunity that makes sense should provide a real person who will coach you through a learning curve to be sure that you can be successful, but they are going to want payment over the time they are providing that coaching. If all the money is up-front, what’s the incentive to be there for you over time.

Second, if you can’t talk with a real person about this home based business, you should question whether or not it’s for real. Not only should you be able to talk with one person, but you should be able to get references from many and you should be able to choose who you call from that list. Of course there will be successes and failures, but you should get a feeling that you’re getting honest, realistic answers from the people you call.

Third, if you don’t have to do any work and you’re going to get rich, forget about it! No such animal exists. It it did, it would be guarded like the crown jewels. Why would anyone make you rich if you provided nothing in return? You’ll only get rich through intelligent work, often by learning from a master. It doesn’t have to be back-breaking but it will require work over an extended period of time.

Next, be very careful about joining a home based business that provides you with a replicated web-site. Almost always, those sites are identical to every other site in the company with the exception of having your name on it, in small print, I might add. The search engines will never rank your site. Your site won’t provide any unique content, nor will the content evolve and add value over time.

So, when will a home based business really work? When you are branding yourself with your own proposal, product, service, education, etc. You’ll immediately ask how you can do that, if you don’t have such an offering. The first thing to do is learn how to properly market the offering on-line. It doesn’t really matter what it will be. When properly marketed, it will come from your branding. You might even recommend other products or services from others but to people who have come to know and trust your recommendations. So learn how to get to that level on-line and you’ll have your home based business that really works.

Is Working In Your Home Based Business From Home Hard?

There are actually three types of work. There is going to work at a job for someone. There’s having your own business that you have to go to everyday, like a restaurant owner, a carpet cleaner, just some type of brick and mortar business. Then there’s a home based business, where you work for no one but yourself at home.I’ve done all three. I worked 40 plus hours a week at a restaurant as a cook and waitress. I owned my own window washing, carpet cleaning business. I had clients call me and want work done, so I would be gone most of the day out on jobs. Now I have a home based business. I stay at home and mainly just work on my computer, when ever I want.I always thought, I am never going to waitress again, on my feet all day answering to a boss, having to be there on their schedule. Or working my own business, where I had to answer to clients, be there when they needed me and work around their schedule. I said to myself, I’m going to have a home based business, where I don’t have to answer to anyone but myself and I don’t have to work for anyone else’s schedule but my own.As good as that sounded, having you own home based business takes a lot of dedication. You have no one telling you what to do or when to do it. It is all on your shoulders. And your pay check is $0 until YOU make it. There are a lot of ups and downs. You have to learn to stay focused, have the drive to succeed and remember the WHY you started your home based business in the first place.So, is working from home hard? Yes, it is, at first. But is it worth it. Yes again. I would not change it for the world. I’m sticking with my home based business, because I know from experience, it is the best thing out there.

Best Home Based Business Opportunity – Make Sure What You Are Getting Into!

There are legitimate and extremely lucrative start up home based business opportunities out there. The key is identifying the best home based business opportunity from the ones that will attempt to steal your personal information or rob you of your investment. While there are many potential chances to find the top online business of today, there are unfortunately a great number of dishonest and illegitimate people on the internet that will not deliver the earnings they promise you. If you have your eye on a community or two to get involved in, here are some tips to know whether or not you are getting involved in the right kind of business.The first step is obviously to examine the welcome page of a site. What information are you provided with at the very beginning? If there are any videos, watch them with an open mind. If a sign up is required to see more, there is no harm in providing your email address to gain further access to a site, as long as no credit card information is demanded of you. Is there a name or a person associated with the site you have found? If so, you can check that item off your list of qualifications for the best home based business opportunity online.The simplest action of having the name and contact information of the creator of a site provided is a good sign that it is legitimate. Try out the contact information and speak with the creator of the program you have found. If they are willing to answer your questions to your satisfaction, you have another point to cross off your list of what makes the best home based business opportunity. If, however, your attempts at making contact fail to bring you any results, steer clear of that website’s claim because it is not a top online business.What kind of claims is the start up home based business making? If they suggest that you can sit back and make $5,000 a day with no work, do not buy into it! Starting a business-online or off-requires hard work, dedication and training. If you enter the profitable home based business arena with this in mind, you will have a much greater chance of success. A site that is willing to say that hard work is involved along with some upfront investment is probably safely considered the best home based business opportunity.

Money to Start a Home-Based Business

Locating Small Business FundingHow to locate Small Business Funding to start your Home-based business is a topic that peaks everyone’s interest, because we all need a little help to get started. Many times a home-based business is started through the use of multiple sources. If a loan is not right for you, there are other options available.Typically the average entrepreneur will use a variety of resources to start their home-based business. You might say they use a piecemeal approach or “Bootstrapping” consisting of the following sources:· Savings (probably the #1 resource)
· Credit cards
· Family
· FriendsLet’s talk about the top four:Savings: This should be your first option for your home-based business but many of us do not have savings to rely on or do we?What if you use your tax return or economic stimulus money to start your home based business? This may provide you with the initial capital than you could possibly add to it on a monthly basis to pay for some of your recurring expenses.Credit Cards: Most start up entrepreneurs use credit cards to start their home-based business. This can prove to be a valuable tool especially in the early stages of your home-based business. Warning! Use your credit wisely and with caution due to the high interests rates and remember sooner or later you are going to have to pay.Family and Friends: They may be your best source for borrowing money for your home-based business. Why? Because they know you, believe in you and trust you. If they were in a position to lend you money and will not then a bank probably wouldn’t want to take a chance on you either.Tip: To make your family feel more comfortable with lending you the money for you home-based business. Try using a service that manages the loan and documentation. This would make it a real loan for their added security and peace of mind. You may want to use this as a negotiation tool to help convince family and friends if they are hesitant to lend you the money to fund your home-based business.These are probably the most popular resources and the ones that are most familiar to you. However there are other sources available for your home-based business.Government Loan ProgramsPatriot Express: This new loan program is for Veterans, Disabled Veterans, National Guard and Reservists, current spouse and widowed spouses. These loans can be used for almost any business purpose (including start-up).Patriot Expressloans are available up to $500,000 and the SBA will guarantee from 75 to 85% depending on the size of the loan. Interest rates run 2.25% to 4.75% over prime.Micro-loan 7(m): The loan itself can be for as much as $35,000 but is not available in all states.Do you have an IRA?If so did you know you may be able to use it for your home-based business, to buy a franchise or for that real estate investment? People are doing just that every day, Why not you! There are a variety of creative financing sources available to the entrepreneur limited only by your imagination.To sum it up we all need a little help to get started in business. Be persistent and refuse to give up on your dreams. Your funding may come from many sources a little from savings, a little from credit cards, some from family and possibly some from a micro-loan. Money from many different sources may be just what you need to fulfill your dreams.

Turkey Property is a Wise Buy in the Current Economic Climate

Turkey has developed a reputation as a value-for-money destination, helping to boost the country’s popularity as a property investment destination. Spurred by relatively cheap property prices, demand for Turkey property is growing.Weak Turkish currency
A recent report from the Post Office named Turkey as one of the world’s most affordable places for Brits’ to visit, due to sterling’s strength against the Turkish lira. Yet, the Turkish currency is expected to fall in value in 2009, according to Deloitte Turkey, making already low property prices even more affordable.”It (the Turkish lira) started the year (2009) relatively weak due to a 200 basis point interest rate cut by the Turkish Central Bank,” says Percy Pound.Robert Nixon, executive director, Nirvana International, comments: “From a British buyers perspective the purchase of property in Turkey is a wise move in the current economic climate as it is outside the eurozone and therefore your pound goes further.”Turkey, which now attracts around 25 million tourists each year, was last year named number one holiday destination for British tourists. Nonetheless, international visitor numbers to Turkey are expected to rise further this year. Travel association body, ABTA, predicts that Turkey will be one of two “big growth areas” in 2009, along with Egypt.The economy
The Turkish economy, which is partly and unsurprisingly reliant on tourism, appears to be well equipped to withstand the current global financial calamity, after recovering from its own crisis in 2001.A levelling up situation – wage inflation, growing prosperity and access to less constrained mortgage finance – is driving greater domestic and international demand for properties in Turkey.Mortgages in Turkey were introduced in 2007, enabling buyers under the age of 75 to borrow up to 80 per cent of the property’s value for a maximum term of 20 years, according to Eric Kaya, director of Cumberland Properties. Mortgage borrowing rates currently start from around 5.8 per cent.Kaya says that the previous inability to obtain mortgages was “stifling demand, preventing people from buying property and holding our (Turkey’s) economy back. The new mortgages that are now available are good news for both Turkish and overseas buyers.”He adds: “Prices of property in Turkey are a lot cheaper than much of the rest of Europe” and this presents “a lot of opportunities for investors to make very good returns from property.”The Turkish Statistical Institute shows that there are now around 73,000 overseas nationals registered with Turkey’s Land Registry, many of who will have benefited from recent capital growth.Property price growth
Estate agent, Aston Lloyd, reports that average Turkish property prices appreciated by 7.3 per cent between 2004 and 2008. Given Turkey’s economic strength, combined with a general housing shortage, hopes of joining the European Union and a maturing mortgage market, Turkish property prices should strengthen further moving forward.However, there are signs that property price growth may slow across some parts of the country or even depreciate in the short-term, as the worlds’ economy all but grinds to a halt.Economic caution
Despite the country’s seemingly strong economic position, Turkey’s economy will potentially face a tough year in 2009, having made around £51 billion of financial obligations, according to Deloitte Turkey in its Economic Outlook 2008.This means that the country will need to raise money in financial resources to cover a current account deficit and matured debt, according to the report. Consequently, an agreement with the International Monetary Fund will be vital to help produce these funds.Nevertheless, the medium to long-term outlook for Turkey’s economy looks positive, which should in turn benefit the country’s maturing housing market.Turkish news provider Hurriyet estimates that the rapid growth of the country’s tourism industry will contribute to a property boom in 2010, while investment banking firm Goldman Sachs estimates that Turkey will become the world’s ninth largest economy by 2050.Where to buyIstanbul
With a rapidly growing young population of over 10 million inhabitants, developers are whipping up new residential units across the city to meet growing demand for homes.Prices of property in Istanbul reportedly jumped annually by up to 40 per cent between 2002 and 2005, after a law was introduced, permitting foreign nationals to purchase property in Turkey in their own name. Although capital growth in the city has since slowed, there are signs that prices of Istanbul property will continue to appreciate moving forward, especially as the city will be crowned European Capital of Culture for 2010.Furthermore, some of the greatest rental yields in Turkey can typically be found in Istanbul, with an average rental return of 7.54 per cent currently achievable, according to the Global Property Guide.Nixon says: “The rental market [in Turkey] is very good and being fuelled by the continued popularity of Turkey as a summer holiday destination, as well as by local demand, particularly in Istanbul,”There is excellent potential for long-term lets to professionals [in Istanbul],” says Nixon. “Such is the confidence in the letting sector that many developers operating in Turkey offer rental guarantees. We are currently selling property with a 5-year rental guarantee at 9.5 per cent”.Bodrum
Away from Istanbul the Turkish government is making significant investment in infrastructure improvements, particularly in places like Bodrum, located along the Aegean coastline, in southwest Turkey. This popular yachting and tourist hub attracts an estimated 70 per cent of all tourists that visit Turkey each year.Cumberland Properties is currently marketing a luxurious gated development in the region, Seaview Regency, which features 19 contemporary three-bedrooms, three-bathroom, detached and semi-detached villas situated on a hillside overlooking the bay of Kucukbuk. Prices for Bodrum property here start from £165,000.Altinkum
A cheaper alternative to Bodrum is Altinkum, located 75 minutes from Bodrum airport, where prices for new-build property in Altinkum start from under £20,000.Kusadasi
Before Bodrum was the most popular holiday home destination in Turkey, Kusadasi, situated to the west of Turkey, was originally the most popular destination for British tourists visiting Turkey, during the 1990′s. However, the region’s popularity with Brits’ fell after most flights from the UK were redirected to Bodrum, due to cheaper landing costs.”Enquires from Brits’ for homes in Kusadasi have risen substantially in recent months,” says Tracey Ogretici of Elite Homes Turkey. “The fact that property prices in the area are not over inflated, with new-build units starting from just £30,000, means that an investment in property in Kusadasi is a safe one, as homes are not likely to fall in value.”Belek
Golf is seen as a major catalyst for attracting more tourists and second homeowners to Turkey. With mass infrastructural improvements taking place and the prospect of up to 15 new local golf courses, Belek is a highly sought after area to own property.Set in Turkey’s Antalya Province on the southern Mediterranean coast just 20 minutes from the Antalya international airport, this year-round destination offers a range of attractive beaches, as well as archaeological sites, such as museums and bazaars. New-build property in Belek currently start from under £60,000.Alanya
Although the overall standard of accommodations in Alanya, which is also situated in the Antalya Province, remains somewhat inadequate, attempts are being made to improve build-quality.”We expect branded developers to start building property in Alanya City over the next few years,” says Ali Pusat of prominent construction firm Koray. “Alanya has the potential to replicate Spain’s property success, without the oversupply of homes.”Koray has joined forces with developer BPI to build the Hill, located in Konakli, Alanya. Apartment prices at the hillside development, which will feature a selection of modern one to three-bedroom properties in Konalki, a stone’s throw from the beach, start from £89,000.Amongst some of the other popular choices are: property in Marmaris, property in Fethiye, property in Dalaman, and property in Dalyan.Summary
With a number of low-budget airlines now flying into Turkey, a burgeoning property market, a strengthening economy, and plans to join the European Union, the ingredients seem right to buy into Turkey’s residential property market – whether for investment or personal reasons.However, despite all the positives, Turkey still lacks transparency. Tales of corruption and rogue housebuilders are not uncommon, and so it is necessary to approach any purchase of Turkey property with caution. Ensure that you seek independent legal advice and conduct appropriate due diligence before committing to buying a house in Turkey.

What California Law Requires Property Managers to Know About Smoke Detectors and Smoke Alarms

If you manage properties or rental units for a fee, or you are an individual who rents properties or rental units to people/tenants for a rental fee or leasing fee you should pay attention to what the law requires when it comes to smoke detectors or smoke alarms. As a landlord you are responsible to know the law; ignorance is no defense to a wrongful death lawsuit or serious fire causing major property damage. Smoke alarms and smoke detectors are critical residential components which must be handled with care and diligence as they are life-saving and property-saving devices which must not be taken lightly. The undertaking of managing properties is wrought with legal pitfalls and unknown obstacles, however understanding the law is paramount to being a fiduciary for your client, or being on the right side of the law if something goes wrong. A new 2014 law in California implements some standards which all property managers and property owners who rent to individuals must be aware of and abide by.

New Law for Life-Saving and Property-Saving Devices

As of January 1, 2014 all smoke detectors installed in residential units in California must be on the State Fire Marshall list of approved and listed devices and are required to; 1) display date of manufacture on device; 2) provide place on device where date of installation can be written; 3) incorporate a hush button feature; 4) incorporate an end-of-life feature that provides notice that device requires replacement; and 5) maintains a non-replaceable, non-removable battery capable of powering smoke alarm no less than ten (10) years – if the device is battery operated.

New Obligations for Rental Property Managers and Rental Owners

Prior existing law required multi-family rental property owners to install, test, and maintain smoke detectors, while single-family unit owners were under no obligation to do so. As of January 1, 2014 all residential unit owners who rent to tenants for a fee are required to install, test, and maintain listed and approved smoke detectors. For apartment buildings with two or more units landlords are even required to maintain smoke detectors in vacant units.

Owners, property managers and landlords are allowed access to tenant units to inspect, test, repair and maintain smoke detectors provided they give reasonable written notice to the tenants. Reasonable notice is considered to be written notice within 24-hours, Monday through Friday, or whatever can be arranged with the tenant as not to disrupt the tenant’s quiet use and enjoyment. Importantly for property managers and sole property owners who rent a new tenancy requires an inspection and confirmation of an operable, code complying device, in all of the required locations within a rental unit.

Penalties for Non-Compliance Can be Expensive

When building permits for repairs or remodeling are obtained a final inspection of the construction will not be approved until code complying smoke detectors are installed and tested by the building inspector in all of the required locations within a rental unit. If this inspection fails a delay in obtaining a final building permit approval could be a few days (depending on the building department scheduling) which could result in rental income losses.

Importantly property managers, landlords or owners who fail to comply with the new law can be fined $200 for the first and each subsequent offense.

Compliance with the Law is the Best Practice

The new law creates an opportunity for property managers, landlords, or owners to inspect their units for compliance and maintenance during a period of time when it was not otherwise required. The life-saving device inspection should be done periodically as this is an important component of the rental unit habitability, rental unit life-safety and a prudent business practice. An inspection of carbon monoxide detectors should be performed at the same time.

Advertising Costs – A Vital Investment

In in Australia, the 45 biggest spending businesses collectively spent roughly $2.4 to $2.6 billion in advertising costs. Every year around the world, businesses are prepared to spend billions of dollars on advertising. Big business are committed to spending such enormous amounts on advertising because they know a simple truth: advertising is an investment. Big business know that for every million dollars they invest, they’ll see returns that make their initial investment worthwhile. But if you’re a small business owner, you need not be scared away by these figures, because it’s all relative. Even a small amount now can pay substantial dividends later. In this article, I’ll discuss why advertising is one of the most vital investments a business can make, and I’ll discuss what it is exactly that you’re investing in, and why it is so critical.

Investments can take many shapes and sizes but they usually involve spending money on something now that can make you more money in the future. The more money you put in, the more money you can get back. Advertising is exactly the same. But all too often advertising is treated as an expense rather than an investment. Let’s take a look at this concept in more detail, and consider what exactly it is that you’re investing in.

As with all investments, there’s a certain level of risk involved, and the returns can vary. Some investments perform better than others, and some leave you wondering where your money went. Advertising is no exception. Some advertising campaigns can produce exceptional results and drive business growth, while other campaigns may have little impact or in some cases, even a negative impact on business. If you think of advertising as an investment, then you should approach it the same way you would approach any other investment, such as a house, or stock market shares. The first step is research.

Research as much as you can about that investment, and all the factors that affect its value, in order to evaluate the risk and potential profits. The ideal combination that most people look for is an investment that minimizes risk and maximizes profits, but some people are prepared to accept higher levels of risk for potentially higher profits. Similarly, before you spend money on advertising, it’s important to do the necessary research in order to minimize the risk and maximize the profits, to get the most out of your investment.

If you’re looking to buy a house, for example, what you’re investing in is clear – a tangible object, but with advertising it isn’t so clear. If advertising is an investment, what is it that we’re actually investing in? To answer that question, first let’s look at what advertising is, in essence. Advertising can be defined as a form of communication, where the aim is to persuade someone to do business with you. That someone could be a potential new customer, a previous customer, an existing customer, or someone who isn’t a potential customer but knows someone else who is. Advertising is a way of communicating with customers, either indirectly or directly, impersonally or personally. So this means that an investment in advertising, is really an investment in communication with customers. Why is it so important to invest in communication?

Communication is the backbone of all our relationships. You can’t build a new relationship with someone if you don’t communicate with them, in some way. In our personal lives, communication allows us to form new relationships with other people, whether it’s a friend, an acquaintance or a doctor. Communication is also what maintains our relationships. Just think if you stopped talking to a friend altogether, how would that affect your relationship with them? So if advertising is a form of communication, and communication is how we build and maintain relationships, then you could say that advertising is ultimately an investment in the relationships with your customers. Advertising is a way of fostering new customer relationships, and strengthening existing ones. Stop and think for a second about how important customers are to your business.

I suspect you’d agree that your business could not exist without your customers/clients/consumers (whatever you prefer to call them). Whatever your business is, whatever shape your customers take – your business needs them. Customers are the life-blood of any business. It therefore makes a great deal of sense to invest (both money and time) in the relationships that customers have with your business, by communicating with them regularly through advertising. Whether it’s communicating for the first time about your business, or reminding a past customer about your services, advertising forms a key part of growing vital client relationships. And that’s where any advertising strategy needs to start – by focusing on your customers. How well do you know your customers?

In conclusion, advertising plays a vital role in maintaining relationships with your customers, through regular communication. Advertising is a way to tell customers about your business and services, and leave them with a positive impression. Advertising is also a way of ‘keeping in touch’ with past customers. In the world of business, you could say that customers make the world go round. Without them, where would your business be? So don’t be deterred by advertising costs now – think of it as an investment today in your customer relationships, that will ensure your business’ success well into the future.

The Finer Points of Internet Auctions


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.


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.


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.


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.


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.

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.