How to make money at auctions: bankruptcy + on the Internet
How to make money on auctions? In the understanding of many citizens, an auction is a place where they give a large pile of money for works of art. However, in reality this is far from the case. Today, online auctions are practically no different from trading platforms.
Each of us can not only buy things without leaving home, but also make good money on it. Almost any product that has been gathering dust on a store shelf for years will find its buyer. The global network is truly endless and gives everyone the opportunity to enrich themselves.
However, how to make money on auctions? Will it require investments other than free time? Let’s figure it out.
What is the difference between conventional and online auctions?
Auctions held on the Internet practically do not differ from ordinary ones. Some participants put up lots, while others place bets on them. The main difference between the two types of auctions is that only those who organize them earn money at ordinary auctions. But in the global network anyone can do it. To do this, you need to lay out any thing and set your value. In addition, participants do not have to come to the same place to participate in the auction. You just need to join the process from your gadget.
Online auctions have many advantages. You can put up for sale whatever you want. Not so long ago, a man sold his life at auction. Of course, we do not suggest you do this in any case. However, it is quite possible to sell unnecessary equipment and old clothes. The essence of earnings is clear, now let’s try to understand how to make money at the auction.
What are the benefits of making money on online auctions?
There are differences between the online version and the "real" version. Moreover, there are many more advantages to making money online:
- a large selection of products;
- the opportunity to communicate with potential buyers even before the completion of the transaction, to clarify the details, and this eliminates a number of overlays;
- simple procedure for selling and buying things;
- earnings are higher than with the usual sale of goods;
- many buyers who are attracted by such trade;
- no need to pay an initial fee;
- a lot of tools to advertise a thing from the best side: upload clear photos from different angles, describe products in detail, etc.
Ways to make money on auctions
There are several options for how to easily make money on the auction. Let’s dwell on each of them in more detail.
Direct sale of goods
Each of us has a lot of things that are not used for years. Perhaps in a pile of rubbish there are things that will be in demand for other people. Maybe you have rare pieces of art, antiques, nesting dolls, etc. Selling things at auctions is a great way to make money. However, experts usually do not share their experience or the categories of products they sell. Therefore, you will have to gain experience on your own.
This method is the simplest and at the same time the most complex:
- to earn money, put up for auction a product that was purchased by mistake and you do not need;
- you do not need to make any investments;
- if your thing is unique, for example, it is an antique candlestick, then it can be put up for auction abroad (foreigners are willing to pay much more for such items).
You can get a good income if you sell a lot of things or give away something valuable, which is not always realistic. Sometimes it makes more sense to put a product on a bulletin board and find a buyer.
Resale of goods
Today, digital equipment is sold at auctions at prices that are inferior to the current ones. The same smartphone can be bought 2-3 times cheaper than in stores. By reselling goods, you can make good money on it. You can also organize an online store and offer things at a big discount.
This method is quite simple. It works like this:
- Choose products that an ordinary consumer in your city may need.
- Find it at a foreign auction and buy at a low price. As a rule, "dealers" order goods in bulk – from 5 to 1 thousand units.
- After receiving the goods, you submit an advertisement for its sale with a small margin. That markup is what you earn.
It will take time to understand how to make money on online auctions. However, this is easy to figure out. Such earnings are available without investing in the purchase of things, since many services make it possible to make a purchase with a deferred payment. And if you find a common language with a foreign seller or manufacturer, but such relationships eventually develop into a business partnership with high turnover.
Tip: when setting the price of a product, you should not mark up too much, otherwise there is a risk of selling things for a long time.
Some online auctions are rapidly growing due to the attraction of new participants. These organizations have different conditions. Someone offers a referral 2-5% of the transaction amount, someone provides a certain percentage of the system’s earnings.
This way of earning is simply created for those who have their own Internet platform to attract traffic. Such a resource can bring good profit.
This method is different in that:
- almost every online auction offers such cooperation;
- easy and simple to choose a referral program – the more popular the auction, the more profitable it is to work with it;
- no investment required.
Affiliate programs include:
- Registration in the system and it is even possible to conclude an agreement.
- Payment of taxes. Your profits will be withheld or subject to a mandatory deposit.
Earnings through an affiliate program is the easiest and easiest way to receive funds. However, you will first need to collect a large amount of traffic. Then you can then earn up to 2 thousand dollars from the average site.
This option of making money at auctions is suitable for professional traders who have extensive experience and are ready to advise beginners. You can write a manual, organize paid consultations, record video tutorials, for example, " How to make quick money at the container auction, in addition to basic sales."
On the web, you can find many organizations that make money on auctions, helping in the acquisition and delivery of products from abroad. Many of them do not want to deal with buyers from lately, in turn, buyers want to avoid problems with getting things to their door. Actually, this is what intermediaries use.
The most common scheme is as follows – the buyer registers on the intermediary’s Internet site, selects goods at the auction and sets the highest price that he is willing to pay. A special robot monitors the course of the auction. In the last seconds, he makes a bet for you. As a result, the online auction is won, but the goods are not sent directly to you, but first go to the intermediary’s warehouse. Only then is the package delivered to your home.
The intermediary earns on commissions – a percentage or a fixed amount of the order. When buying things through an intermediary company, people deprive themselves of many problems, while overpaying.
Such activities are characterized by:
- delivery is made at the expense of the manufacturer, less often – at the expense of the buyer, you do not take part here;
- you can get certain privileges from the manufacturer and directly from the online auction;
- the search for buyers and advertising falls on your shoulders;
- good earnings, since you buy goods from the manufacturer at cost, while setting the markup yourself.
This way of earning carries the following risks:
- you cannot control the delivery of the goods;
- the purchase is delivered to the buyer, so you do not have the ability to control its quality.
As a result, it is important to find a large online auction, choose products with a minimum of complaints and evaluate the demand for such products.
Is it possible to buy an apartment or a car 2 times cheaper than the market value? Yes, by participating in auctions where the sale of the bankrupt’s property is carried out. However, how to make money on bankruptcy auctions? To learn this, you need to carefully study the law, choose a way to earn money, get an electronic digital signature (EDS) and learn how to analyze lots.
The law on "bankruptcy" states that any property of the debtor is subject to sale at auction. According to CMASF research, more than 1 thousand bankruptcies of legal entities are carried out in our country. persons per month. As a rule, the property of bankrupts includes equipment, vehicles, securities, real estate, etc., which are sold at bankruptcy auctions. Therefore, it is so important to figure out how to make money at a bankruptcy auction.
In order for this type of activity to be profitable, you need to know the mechanism and conditions for bidding for bankruptcy. Quite a few courses are advertised on the network, the authors of which promise to tell how to make money at bankruptcy auctions by buying property values of debtors for 1% of the market value. However, do not believe such statements, this is a hoax, be careful.
Auction earning options
The advantages of this type of earnings are that you can start with small investments, for example, to buy furniture or office equipment. But how you can make money at bankruptcy auctions will tell your own experience. There are several options for earning, we list the main ones:
- invest in the restoration of bankrupt enterprises with further profit;
- purchase property for business (become the owner of the premises by buying it at an auction at a price below the market, and then rent it out or open your own store);
- buy a car or real estate, repair and sell at a higher price;
- organize training courses on bidding;
- buy for the purpose of generating income (property is purchased cheaper, sold at a higher price);
- purchase vehicles for business (for example, to organize a logistics company or to work in a taxi);
- purchase land, and subsequently sell at a higher price;
- buy real estate and rent it out;
- purchase production equipment and then resell it at a higher price;
- work as a bankruptcy manager: receive a certain percentage of transactions;
- save on the purchase of property (this way you can buy a vehicle, furniture or real estate at a price below the market price).
IMPORTANT! There are many tutorials on the web. However, before buying this or that course, study the legislative framework.
The Best Bankruptcy Electronic Auctions
To date, there are about twenty large online bankruptcy auctions, how to make money on which you will learn by studying in detail the mechanism of their work. Let’s highlight and briefly talk about the most popular of them.
Sberbank is the largest lending bank. And so he has his own bidding system, where you can buy the property of bankrupts. This financial institution lists lots only on its Internet site, which makes it unique among others.
A popular trading platform is Fabrikant, where there are about 25 thousand visitors per day and more than 500 thousand suppliers. This service is bidding. At the same time, many financial organizations lay out the property of debtors at Fabrikant, so here you can find about 100 thousand lots offered by banks. Individuals can trade and acquire bankrupt property all year round.
This portal has a small number of lots. Internet auctions are held quite often, providing directly to the participants all the necessary information about the goods.
TBankrot is a well-known platform where all popular bankruptcy auctions are searched. Once you find an item you like, just click on it and it will redirect you to the website where the item is listed. True, this service has one significant drawback – it is paid. It costs 1500 🪙 every month, but there are many interesting lots in your city.
Secrets of making money on bankruptcy auctions
If you do not want to spend your own funds or lack them, there are ways to acquire property by attracting investors. By assisting in trading support, you can get a net income in the form of 10% of the transaction amount. You can also sell the purchased property on your own and receive another 5% profit.
In the event that it is decided to become a participant in the bankruptcy auction, how to make money should be of concern in the first place. First of all, you need to be careful when choosing lots. Experts recommend to be guided by the following rules:
- start with work on regional Internet resources;
- know the specifics of the property offered for sale;
- carefully study the system, the principle of operation of the Internet site.
The experience gained will allow you to make good profits. However, if you cannot find the required amount of funds or find an investor, you can take a loan with a hold period. Interest is not charged when the debt is repaid within 8-12 weeks. Gradually, it will be possible to expand activities, reducing personal costs.
The work of an intermediary also makes a profit. The client, realizing the benefit, will make a deposit, which is then used to buy the property. In this case, you get a net income without your own investments.
Agents who work at bankruptcy auctions and know how to make money are well paid for their services. As a rule, customers are successful businessmen who do not have time to take part in such cases. It is much easier for them to entrust the work to professionals who will select a good lot, collect all the documents and provide their EDS. For example, if the lot costs 30 million 🪙, then even the percentage of it is 300 thousand 🪙, while the agent can earn up to 10% from the transaction. This is a great income that you can get by using your skills and knowledge.
For participants in the bankruptcy auction, there are no restrictions on the place of residence. Delivery of property is carried out at the expense of logistics companies transporting goods.
What problems can arise with bidding?
Today, making money at auctions on the Internet is presented as one of the simplest and easiest ways to improve your financial situation. However, this is not as clear cut as it might seem at first glance. An organization that has received bankruptcy status sells its property. When buying such a property, you must pay a bank deposit. Otherwise, you will not be able to use the property.
When learning how to make money at bankruptcy auctions, it is important to know all the pitfalls. You can buy an apartment where minor children are registered. Such a purchase threatens litigation and, as a result, large expenditures of funds. After all, it is not easy to write a child. It is necessary to provide an alternative living space where he will be registered. The following problems may also await:
- A lot of time is spent on studying the market and selecting a profitable lot. In addition to processing information on it, you should spend time on paperwork and applications. The work is monotonous, requiring attention and patience.
- The most profitable lots go in seconds. If the lot is not gone, but it is cheap, you should think about it. Perhaps a house with an encumbrance, where public transport does not go. Also, the owner may have relatives who refuse to sell the property.
- If it seems to you that the lot will bring profit, then such a feeling immediately disappears after reading the information on it and examining it.
- The vehicle purchased at the auction may be pledged to the bank, which means that it will be necessary to go through the procedure for removing the encumbrance.
There are no problems that cannot be overcome. Some people, participating in bankruptcy bidding, managed to make a fortune on the resale of property.
How much can you earn at auctions?
As a rule, the margin on auction goods is about 20% of the purchased value. That is, you must purchase products at auction at 20% below its market price. In addition, you will have to take on certain risks that are associated with its further sale.
When buying an item at an auction, consider its liquidity. There are groups of goods that can be easily sold. It is worth spending more money on them, since you can earn up to 15% on top. And there are things that are sold for a very long time, so they are usually not purchased at full price.
If you work with highly liquid products, you can receive about 10% per month of the purchase amount at the auction. You can achieve this figure with a long delivery time and minimal errors. The more time you devote to this work, the more you can earn.
Having studied the ways of earning money at auctions, all their pros and cons, we can say for sure that such an activity will be justified only if it becomes your main one. The most promising option is dropshipping. On social networks, you can find many such sellers who offer things "directly from Turkey or China." This way of earning really brings a good profit and may contribute to the opening of your own store in the future. The only difficulty in this case is the search for a sought-after product and its manufacturer. Other ways to earn money with online auctions also deserve attention, but require more time and impose much more obligations.
Now you know how you can make money on bankruptcy auctions and other activities, which means you can organize trade on your own. We wish you success!