Looking to watch profit flow in an automated Penny auction business is a fantastic way to create major profit—if you can successfully set your business up. Penny auction businesses need a detailed, and well-crafted model to succeed. Competition is intense and your business is dependent on building a customer base.
The first thing you will need is a script for the operation of the penny auctions themselves. These scripts can be hard to find. There are plenty available but few that will work consistently and that is suited to your needs. When you have your script you will need web hosting and the website itself. Whether you put in the hours to construct your own site or outsource it, a smooth website is necessary for a penny auction site.
Advertisement is pivotal for penny auction sites. You will need to direct traffic to your site for the auctions to be successful. There are two fundamental tools for advertising. You will need to advertise using a major web advertiser such as Google. The second option is to thoroughly backlink your website. The rest of your efforts should focus on SEO content, social networking, blogging, press releases, and other common internet marketing tactics.
Active monitoring of your server and daily backups will be some of the basic security and maintenance you will need. Most penny auction sites will ship directly from Amazon to their auction winners rather than carry inventory. Whether your model calls for an inventory of your items or direct shipping, getting your auctioned items shipped promptly will keep your customer base returning to your auction site.
The other management decision you will need to make is the format of your auctions. How frequently do auctions go live? When do timers start? How many bids are required before an auction is canceled?
Once your business, website, and auctions are ready to roll you need to set up your payment processing.
Penny Auction Merchant Accounts
Penny auctions can be a difficult sector to find a bank willing to open a merchant account. Most banks consider penny auctions high-risk, due to financial and reputation concerns. Your best solution is to let eMerchantBroker’s experienced high-risk merchant account team find the best payment processor for your penny auction site. Our team has the experience to set you up with a high-risk merchant account tailored to your needs within days so your website can go live and your profit can begin to roll in.