Auction Gold Ezine: Make Money With Online Auctions

October 11, 2002

In this issue:
* Auction Genius Course Begins October 26
* NEW! NEW! NEW! AuctionKnowHow Affiliate Programs
* Feature Article: The Unpopular Truth About Your Auction Business
* Be On The Cutting Edge Of What People Are Buying
* An Intriguing Auction
* Beware Giving Out Your Information On The Net!
* News From eBay
1. eBay Officially Acquires PayPal
2. eBay Sells Its Classic Car Auction
3. Club 99
4. eBay Launches New Sports Division
5. Sports Authentication Service
6. Top 10 Sports Keywords on eBay
7. Enticements To Upgrade Your Store
8. New “Gift Services”
9. Withdrawing Your Auction Listing
* New Yahoo Payment Service
* Sorry, Guys

Auction Genius Course Begins October 26

I am tickled to report that the next Auction Genius Course™ will begin on Saturday, October 26. It's an eight week course that meets two hours on Saturday. It's interactive, so you can ask questions about whatever's going on.

When I was asked to teach this course, I thought for quite a long time about what was necessary for an auction BUSINESS. (Lots of people have auction HOBBIES.) Here's what I think it takes:

1. First, let's look at it from the perspective of the buyer. What does she see when she goes to your listing? Only two things:

What you're selling
And what you say about it

That's it! That's all she cares about. If you master those two skills, you're most of the way home. That's what Part I and Part II are about.

2. Of course, there's more behind the scenes, and that's Part III.

Years ago I was on a R-O-L-L!!! I was selling hundreds – literally, hundreds – of items each and every week. Making money by the truckload. It all built up until one week when I successfully sold 1275 items! That didn't include all the hundreds of other goodies that were holdovers from earlier weeks.

Guess what happened? My system simply broke down. Totally. Completely. Absolutely.

At the time, I was using a spreadsheet system of management, doing everything by hand. It was one of the worst nightmares of my life. I got so confused that I didn't know what was going on – in spite of working 12-14 hour days to sort it out. I ended up closing down my auction business for almost three months and re-thinking everything I was doing.

Fortunately, that would never happen to me today. Part III aims to make sure that never happens to you.

3. Sometimes I get letters from readers of Auction Gold who are aggravated about why I won't reveal my eBay IDs and show what I am doing.

The reason is because I have figured out a totally unique (as far as I know) way to make money on eBay, and I have never revealed it to anyone – until now. I have figured out how to make a minimum of $500 an hour using eBay, and I have it down to a science. I don't say that this is the way to do business on eBay, but I am offering it as a powerful option. And the reason I don't display my IDs is because I have made a career of being anonymous. I don't care about glory ... I prefer money. :-)

We might have a guest speaker or two. In fact, Jim Cockrum has already promised to drop in. I have been praising Jim's book, Silent Sales Machine, and that book is dynamite. Jim sells it through Clickbank.com which, ranks all of the eBooks they sell based on sales success and there are thousands of titles. Silent Sales is currently #1 in the 'Home Business' category.

http://silentsales.auctionknowhow.com

If you'd like to join us, mark your calendars for October 26, and go to:

http://auction-genius-course.com

NEW! NEW! NEW!
AuctionKnowHow Affiliate Programs

In addition to our recent Auction Genius Course™ affiliate program, which pays $75/ sale, plus $25 on the second tier, we have now added our three products from this site.

The Wholesale Database:
http://auctionknowhow.com/wholesale

Our Wholesale Database has recently undergone extensive updating. Sources come and go, especially on the internet, and we had someone working fulltime for days, just checking links, updating and doing general cleanup. Everything is current, as of the last few days.

We have a total of 911 wholesalers, 208 of which are new. There are 48 new book sources, 27 new entries in the “Gifts and Collectibles”, 20 in “Home and Garden” plus 20 each in “General” and “Miscellaneous”.

We're paying $19.98/sale. This actually works out to about 65%, since we're absorbing all the payment charges and server costs.

And by the way, we were recently horrified to discover that there was a malfunction with the email address for the Wholesale Database. If you sent an email and never received a reply, it's because we didn't receive it. Those of you who know me are aware that I answer my email. So, please accept our apologies.

Feature Article: The Unpopular Truth About Your Auction Business

This week I am going to offend some of you. I will probably receive lots of angry letters, and more than a handful of “unsubscribes”. So be it. Truth is more important than popularity.

Auction Gold has only one purpose: to help you, my readers, succeed in auctions. I see some disturbing ideas about success that are running through the internet, and there are many people out there who, for purposes of their own, will lie to you and tell you what they think you want to hear.

Here are some realities about a net business.

Truth #1: No one can “give” you, or me, a successful business.

There is a disturbing lack of responsibility in our society. I have seen whining, self-pitying people on TV, blaming their parents, society, employers, God and everyone else for their pitiful situation. Everyone but themselves.

The most startling example I have ever seen was a promo for some afternoon talk show. The announcer mentioned a prostitute who had a “message for America”. The camera cut to a cheap, hard-looking bleached blonde who pointed her finger at the camera and said “YOU OWE ME”.

I don't owe her anything, and neither do you. She has as much opportunity as anyone else to create a successful and happy life.

Christopher Reeves says he has never been happier. How is that possible? I don't know, but that is a very powerful and humbling attitude.

So, the bottom line is that our success is up to us. We can buy an ebook or take a course, and it can make money for us. But the magic isn't in the information, it's in us ... or not.

The internet is awash in “We do all the work, you just cash your check” garbage. But, that's what it is ... garbage.

Which leads me to the next truth.

Truth #2: It ain't easy, folks!

I constantly read people expressing dissatisfaction with their jobs, and they say, “Oh, well, I'll go start my own business”. Just like that. As though it's that easy.

It isn't. If you want easy, work for somebody else. When I quit teaching, I thought the same way. I can tell you from first-hand experience that building my own successful business is the hardest work I have ever done! You can work long, brutal hours, every day of the week, for months or even years – and not make any money at all. Or even worse, go into debt!

I'm not saying that it WILL be that way. I'm just saying the possibility exists. The uncertainty level is high.

And unfortunately, we live in a culture that doesn't support being an entrepreneur. When I decided to start working for myself, I was shocked to discover how many skills I was lacking! I knew almost nothing about selling and marketing, budgeting, writing a business plan, time management, and dozens more things. If I had truly realized how ignorant and unprepared I was, I might not have had the courage to begin.

And the idea that we can buy a book or two, and become successful business people overnight, is nothing but self delusion.

Many of you may have skills that I lacked, or resources that I didn't have. Great! Just don't undertake a business lightly. There is no “sure thing”.

Truth #3: building a business will cost some money

A couple of years ago, I read in Entrepreneur magazine that the average franchise cost $70,000 (it's bound to be more now). That's just the right to do business with Company X. That sum doesn't include rent, utilities, stock, employees, and all the other expenses that come with a retail business.

When I was working in real estate years ago, I received a phone call from an “investor” who asked me a lot of questions about how he could buy investment property. I suggested that he join our local Real Estate Investors Association where he could get some in-depth training. He blithely told me that he couldn't afford the $65 annual membership fee. Yet, he was planning on buying half a dozen properties and renting them out. Talk about Fantasy Land!

The internet is definitely cheaper. But, the cruel hard truth is that anyone can create some sort of website, and consider themselves internet entrepreneurs – but that doesn't mean they're making any money! The internet – and auctions – are a BUSINESS. Success requires skill, discipline and some money.

If you have bought into any of these three myths, don't despair. I have believed all three of them, to one degree or another. They're not fatal. But, they do involve telling ourselves the truth and facing reality. And that reality is:

1. Success is up to YOU
2. Success requires discipline and hard work
3. Success WILL cost some money

Those who unsubscribe because they don't like what I have said ... good luck to you.

Those who appreciate the truth here, then I applaud you! YOU are the ones I want to work with, YOU are the ones who are the leaders and solid net people that we need so much. Pat yourself on the back, and know that you do have the clear sightedness to reach the success you so desperately desire.

Is it a sure thing? No.

Do you have a better chance than most? Absolutely.

I welcome any and all feedback to this article.

Next issue, I want to talk about a really interesting subject. There is a “stream of abundance” that flows through our society. (I call it that, for lack of a better term.)

Somehow, I have recently stepped into that stream. When you get there, more money comes, and it becomes easier and easier. And the great thing is, it can grow into a bigger and bigger stream.

I'm not sure that I know how I got into it, but it's certainly a fascinating and thrilling experience. For anyone who is interested, I will share my impressions so far.

Be On The Cutting Edge Of What People Are Buying
by Gary Hendrickson

This interesting article from associate editor Gary Hendrickson suggests ways to find high-demand products to sell on eBay. Will it work? Gary and I aren't sure.

Within the last couple of weeks eBay has added what they call a Hot Item pages. There is a Hot Item page for each of eBay’s major categories, and according to eBay, they will be updated on a weekly basis.

According to eBay, “HOT products are those where recent bidding growth has significantly outpaced new listings growth and where the bid-to-item ratios are higher than other products in the same parent category.”

In essence, what you are getting is the eBay sub categories where buyer demand is growing more quickly than the supply.

So far they have Hot pages for the 22 different categories.

You can find the current list at:

http://forums.ebay.com/dws?14@1032158033544@.ef74be0

The program is new, and I’m not yet totally convinced that the information it provides is really that useful. For example, the first week in the books category they listed 7 different sub categories. One week later the book hot list contained 14 sub categories – all different from the previous week.

This leads one to wonder if this the information eBay used to determine what goes into this list is really valid or just weekly swings in buyer searches and seller listings.

I think it will take a month or two of information to really establish trends, but it will be interesting to see just how well eBay is able to forecast developing trends. If they are successful, it will be a very useful tool for sellers.

Gary is the author of the very successful book “How To Sell Common Everyday Books On Half.Com Like Crazy!” Gary makes from $750-$1500 each and every month in this wonderfully simple way. I won't turn that kind of profit down, will you? :-)

And speaking of hot ...

Hot Lists from TIAS.com

Here are the Top 10 search words used at TIAS, a site that specializes in antiques and collectibles:

* Plates
* Cookie Jars
* Rings
* Teapots
* Vases
* Lamps
* Avon
* China (dinnerware)
* Pitchers
* Shoes

And here are the Top 10 search words used at Kovels.com, an online price guide to antiques and collectibles:

* Books
* Bottles
* China (dinnerware)
* Avon
* Plates
* China Dinnerware
* Vases
* Furniture
* Figurines

An Intriguing Auction

My good friend Brett Margison, in New Zealand, pointed out this fascinating auction from a website in his wonderful country:

http://www.trademe.co.nz/structure/auction_detail.asp?id=1898894

Helen Clark is the Prime Minister of New Zealand and is breaking bread with the winner in order to raise money for the Americus Cup race. I wonder what George Bush would support?

Beware Giving Out Your Information On The Net!

In a recent edition we mentioned the current scam of the fake eBay email. The victim receives a request to “update” personal information for eBay. So, he goes to a site and fills in personal and financial information. Naturally, the site isn't really eBay. Sometimes, the unsuspecting person fills in information online.

This letter below relates the problems that can occur if you do so. (Apologies to the author of this email, since I can't remember where I found it).

“I thought it might be a good idea if you published in your next newsletter what has happened to a friend of mine (another eBay seller). She received what she thought was a letter from eBay. It had all the eBay logos, etc on the e-mail. It told her to click on a URL to update her info, which she did. She gave her social security number, driver’s license number, password, credit card number, mother’s maiden name and on and on. It wasn’t until she tried to click on that same URL the next day that the link was not there anymore. She wrote to eBay to ask if they had sent the e-mail and turns out it wasn’t. The address was almost exactly like eBay’s. She was told that they know about this scam and are trying to do something about it. Since then she has had to cancel all her credit cards, put a hold on her bank monies, get new drivers license and she also notified the three credit bureaus and its still goes on and on. I am wondering how many people have given this info and are unaware that they didn’t give it to eBay and some unknown person or persons are stealing identities. It could be thousands! The more the public is aware of this, the less they may get away with this scam.”

Here is eBay's official response to this bogus scheme: “If you are concerned about the authenticity of an email solicitation for personal information that suggests that it is from eBay, you should not provide personal information. Instead, forward that email to spam@ebay.com so that we can investigate it. Likewise, if you are concerned about the authenticity of a web page that you have linked to through a spam email, you should not provide personal information, and you should forward the email containing the link to spam@ebay.com.”

News From eBay
1. eBay Officially Acquires PayPal

In a move that surprised no one, PayPal's stock holders approved a $1.3 billion merger with eBay.

Holders of nearly two-thirds of the company’s 61.6 million outstanding shares voted in favor of the merger, and no one at the sparsely attended meeting voiced the objections raised in lawsuits over the share price and patent infringement allegations.

The all-stock acquisition gives eBay control of the Internet’s largest purveyor of online payment services between individuals and businesses. When the deal closes later this year, PayPal insiders will collectively reap, on paper, nearly $600 million.

About two-thirds of PayPal revenues come from fees generated by eBay auction transactions. PayPal has some 20 million registered users, including 3.7 million business accounts. Since 1999, PayPal says it has moved an estimated $10 billion through the online service.

The merger may put eBay into competition with itself for awhile since one of PayPal’s major competitors is Billpoint, an eBay subsidiary that processes credit card payments for online purchases. In its official announcement, eBay justified this merger by saying, ”In fact, you may be one of the many members who told us that you’d like to have PayPal available as a payment option on the eBay site.” This is, of course, ridiculous since PayPal has been a payment option for years - without eBay ownership.

Personally, I don't see anything good coming out of this. Ebay already is such a total monopoly and this makes its control even more profound. I do hope I'm wrong.

For more information, go here:
http://www.ebay.com/paypal/preview/index.html

2. eBay Sells Its Classic Car Auction

In 1999 eBay bought Kruse International Automotive, a traditional auctioneer of collectibles and automobiles. The price was $150 million in eBay stock.

This past Wednesday, Kruse went up for sale.

This deal hasn't worked out well for eBay, although it claims that owning Kruse helped to build eBay motors. Others say, though, that the crossover from internet to traditional business has been an economic mistake for eBay. In August of this year, eBay sold its high-end brick and mortar auction house, Butterfield Auctioneers.

3. Club 99

Club99 was formed to bring a little excitement to Saturdays, normally the slowest day on internet auction sites. The rules are simple: everything starts at 99 cents, with no reserve, and begins on the second Saturday of the month.

In addition, "The seller must put 'Club99' in the title to be in the search," said Club99 member Ray Espinoza. "The sellers have to have at least 10 items for sale, but many go over 50-100 auctions for the event."

They also have “special” events that focus on a particular theme, like patriotism in July, or holiday themes around Thanksgiving and Christmas.

If you want to sell (or buy), go here for more info:

http:// www.club99.com/

4. eBay Launches New Sports Division

Sports sales are definitely one of the most profitable parts of eBay. (They're expecting $1+ billion in sales of sports-related merchandise in 2003). In fact, there are so many sports-related sales that eBay is now the nation’s third-largest sporting goods outlet. Golf-related products are the biggest sellers.

To make it easier for people to spend money, there is a new “eBay Sports”. Buyers can find it directly from the home page, or can go directly to eBaySports.com.

Sporting products will fall into four categories:

Sporting goods
Collectibles and memorabilia
Tickets and experiences
Fan shop

To start it off with a bang are 40 “experience packages” which include:

Shoot hoops with Magic Johnson
Play golf with Jack Nicklaus
Go fishing with NASCAR drivers
Play a pickup game of baseball with your friends at Edison International Field in Anaheim
Get a boxing lesson from Joe Frazier

If hanging out with Magic, Jack or Joe is your cup of tea, better hurry since these auctions end today.

5. Sports Authentication Service

There is so much fraud in sports autograph sales that eBay has created the “Quick Opinion” service to combat fraud.
Prior to submitting a bid for a sports autograph, eBay users can e-mail a hyperlink scan of the signature or its auction lot number to PSA’s experts. Within 24 hours (excluding weekends), they will receive an e-mail notification with one of three opinions about the autograph:

Likely Genuine
Likely Not Genuine
Can’t Determine At This Time

The fee for the opinion is $7.49, and it can be credited toward PSA’s full certification service that includes a certificate of authenticity marked with an invisible synthetic DNA strand that glows green when illuminated with the proper laser frequency.

The obvious question with such a program is how can any item be authenticated merely via a scanned image off the Internet? Some members of the collectibles industry have already voiced their skepticism about the new program for this reason.

Still, it's a positive step.

6. Top 10 Sports Keywords on eBay

1. Paintball
2. Golf
3. NASCAR
4. Dale Earnhardt
5. Tickets
6. BMX
7. Jordan
8. Jeff Gordon
9. Bicycle
10.Jersey

7. Enticements To Upgrade Your Store

In an effort to get sellers to upgrade their stores, eBay is now offering monthly sales reports – IF – you pay for Featured ($49.95/month) and Anchor ($499.95/month) stores.

For more information go here:
http://pages.ebay.com/storefronts/faq.html

8. New “Gift Services”

eBay has long had a “Gift Icon” that has always seemed a total waste of money to me. Now they've announced a new “Gift Services”.

Anyone using this new service gets a blue gift box icon next to their listing on both the search and browse pages.
The seller can also indicate it the service comes with any of the these:

Gift Wrap/Gift Card
Express Shipping
Ship to Gift Recipient.

It will be available in a few weeks and cost a quarter.

9. Withdrawing Your Auction Listing

If you want to withdraw your listing without penalty, you are required to write in an explanation about why you were doing so. Now, eBay has made it easier by adding a drop-down list. Valid reasons for withdrawal include:

Entered wrong bid amount
Seller changed the description of the item
Cannot contact the seller

New Yahoo Payment Service

To make it easier to buy and sell on their auction site, Yahoo has announced a free service for the exchange of payment:

Personal Account: no charge to either seller or buyer
Professional Account: is identical except the seller can accept credit cards, also, for a fee.

Sorry, Guys

You may have noticed that I like to conclude this ezine with either humor or inspiration. This issue I have humor FOR WOMEN ONLY:

http://auctionknowhow.com/pages/womenonly.shtml

OK, OK. I hate to see grown men cry, so you can take a look. But make it quick. :-)