Starting an Online Business

When considering to start your business from home ask, yourself some questions1. Is the online business I am considering stable?
2. What are my goals for this business?
3. Is there a support system in place?
4. Are there sufficient tools to get me started in my online business?So lets take a deeper look at each of these questions to get you started in your online business. Question 1 has the business been around for at least a few years and does the product and the marketing seem sound? Are there people with sufficient backgrounds to make it last while you may not be able to get 100% guarantee of the future looking an the past will be a good indicator of how successful you can be at running your online business?2. What are my goals for this online business? Use the smart system to establish your goals for your online business.
Specific Measurable Attainable Realistic Timely
*Who: Who is involved?
*What: What do I want to accomplish?
*Where: Identify a location.
*When: Establish a time frame.
*Which: Identify requirements and constraints.
*Why: Specific reasons, purpose or benefits of accomplishing the goal.3. Is there a support system in place? Established an online business and a presence on the internet takes time. Make sure the online business your choosing has people in place to help you close sales, help with establishing your site and getting traffic to that site this will save you time. Without that guidance it can be very frustrating and you will have wasted a lot of time.4. Are there sufficient tools to get me started in my online business?Tools to establish your online business can save you frustration and time. You want to be able to use tracking for your ads so you will know what’s working and what’s not. Does the system also allow you to use email ads an autoresponder, splash pages, squeeze pages viral advertising, video marketing.Lets explore these a little closer.1 Email ads there should be sufficient written material to mail to your prospects.2. Autoresponder most people need to see your message at least 5 times before they take action. Does the system your using give you marketing material to follow up with your prospects with a call to action3. Splash pages/squeeze pages a splash page is basically a fast loading page with a call to action ie. sign up to my mailing list and the squeeze page takes your prospect to the autoresponder. You use a well designed Splash page with some of the benefits of your online business outlined you don’t want to expose people with a long marketing massage a first, just enough to get them to sign up to your list. Give people a reason to join you remember this people tune in to their favorite radio station WIFM.W Whats
I In It
F For
M Me4. Viral advertising Just like the cold it’s a message or video that gets passed on from person to person Viral advertising can bring enormous volumes of traffic to a website or blog, and if only one percent of tens of thousands of hits represent really interested customers, even that could effect business remarkably, especially if the virus continues to spread.5. Video marketing Does your online business use videos video marketing service is an exciting and powerful tool to help convert your website’s visitors into customer. This involves thinking outside of the traditional video box and finding new and innovative ways to attract and retain your audience.With the right content, online video will boost the number of qualified leads and new sales. The interactive element of video marketing allows your business to fully engage users and ultimately lead to more sales and greater ROI.

Game Theory, Nobel Prize, & Auctions – Auction Primer Series – Part 1

William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:”Counterspeculation, Auctions, and Competitive Sealed Tenders”, 1961, Journal of Finance”Auction and Bidding Games”, 1962, Recent Advances in Game TheoryIn 1996 he received a Nobel Prize “for fundamental contributions to the economic theory of incentives under asymmetric information.” It’s important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item.Although Vickrey considered his work on auctions as “one of my digressions into abstract economics, at best of minor significance in terms of human welfare”, to those of us who work with online auctions, much of what he outlined is useful to understanding our marketplace.Vickrey identified 4 general types of auctions:EnglishDutchFirst-price sealed bidSecond-price sealed bidEnglish AuctionsThe most common type of auction is the English Auction, although it may also be known as an ascending price auction. In ascending price auctions each subsequent bid is higher than the previous one. This is the most popular type of auction for single items.Although traditional ascending price auctions use a “soft close” format – where bidding continues until a final bid is placed, the majority of today’s on-line auction sites use the “hard close” format – also known as a ‘time interval” auction having a set time limit, regardless of ongoing bidding. It’s important to note that in a “soft close” format, bid snipping, that is bidding during the last few seconds or minutes on an item, is eliminated since the auction stays open as long as bids are being made.In an attempt to minimize bid snipping and provide more of a “soft close” characteristic to their “hard close” auctions, eBay allows bidders to use “proxy bidding”. In proxy bidding, a bidder enters the highest price they are willing to pay for an item when they first bid. The bid begins at the lowest possible level and increases automatically only if their original lowest bid has been beaten. For more in-depth information on the “proxy bidding capability on eBay go here.http://pages.ebay.com/help/buy/proxy-bidding.htmlAmazon.com currently offers a feature for their auctions called “Going, Going, Gone.” The Going, Going, Gone” feature extends the end of an auction for 10 minutes if a bid is placed effectively creating a “soft close”. For more information on the “Going, Going, Gone” feature on Amazon go here. http://www.amazon.com/exec/obidos/tg/browse/-/1161360/103-1666189-8415007#going-goneFrom the buyers standpoint a “hard close” format is preferable since they may be able to make a final bid before others can react, possibly winning the auction at a lower price.For sellers, a “soft close” format provides an opportunity to realize the maximum price for an item by removing the time restrictions for an auction. As long as bidders are bidding the auction remains open.Dutch AuctionsAs you may have guessed, the concept of the Dutch auction originates in the Netherlands. Unlike English auctions which utilize ascending price methods, Dutch auctions are descending price auctions and are commonly used when multiples of the same items are to be auctioned. In a Dutch auction the bidding starts at a relatively high price which is driven progressively downward by bids.As an example of a Dutch auction let’s say you had 10 items you wanted to sell for $20 each.Bidder A bids $18 for 6 itemsBidder B bids $17 for 5 itemsThe final result is:Bidder A would receive 6 items for $17 eachBidder B would receive 4 items for $17 eachPlease note that most Dutch auctions allow bidders to refuse an order for a lesser number of items than what they bid on. A “soft” or “hard close” format may be used in Dutch auctions although the most common is the “hard close”.First-price Sealed Bid AuctionsSealed bid auctions differ from the English and Dutch in as much as the bids are not announced to other bidders. The individual bid is only know to the bidder and the seller. This type of auction may be either buyer-bid, where the highest bidder wins the item and pays the amount of their bid, or seller-bid, where the lowest bidder sells the item and is paid the amount of the bid. This form of auction is common for construction contracting, military procurement, foreign exchanges, and other types of goods.Second-price Sealed Bid AuctionsAnother common name for second-price sealed bid auctions is Vickrey auctions (named after William Vickrey) There is a slight variation to the first-price auction for Vickery auctions. In a buyer-bid auction the highest bidder buys the item and pays the amount of the second highest bid. Or in a seller-bid auction, the lowest bidder sells the item and is paid the amount of the second lowest bid.The above descriptions provide a general overview of the most popular auction types in use today. Depending on the auction website these general categories may include a number of variations and options such as reserve pricing, open or closed venue, multiple items, fixed price and lot listings to mention a few. Before entering any particular type of auctions make sure you study and understand the rules for that specific type of auction, as the rules may vary from website to website.Copyright © Steven Woodward – All Rights Reserved