Here is the Secret to a Successful Auction Fundraiser

What is the secret to a successful auction fundraiser?  Well, that depends.  Some deem an auction a success if they were able to pull it off while investing less time than last year.  Others think it a success if they sell 70% of their items.  I know this is going to sound crazy, but SOME actually think an auction is successful only if it hits a financial benchmark (who ARE these people?).  Personally, I fall into that latter category.  We all have at least some expectation when defining the outcome of our auctions.  But wait... some never define an outcome!

Some like to aim high while others... well...  "Shoot, Ready, Aim" might be a fitting description for how some approach their auctions.  In reverence to all the volunteers putting together an auction fundraiser, I understand that this may not be your top priority and it may get only crumbs of time that fall from your table of life.  Nonetheless, if you're going to take a shot at this, at least make sure you know where to find the target.

What if you don't have a target?  Great question!  Then I suggest everyone around you hit the deck as you start taking pot shots at a successful auction (the target).  You don't have to be a fortune-teller to predict the success of your auction fundraiser.  Instead, just ask yourself this question:  "What is my absolute and definite goal - and what plans do I have in place to attain it?"  Most people will gloss over this saying, "I'd like a successful auction that makes a bunch of money."  That sounds nice, but just as in life, that answer will get you nowhere fast.  Lacking a definite purpose - a goal - and a plan to achieve it, will leave your auction lacking too.

I talk with a lot of people who are planning their auction fundraisers and it's surprising how many have no solid goal.  They have hope, and great attitudes, big smiles, even strong work ethics, but no goals.  Honestly, one of the secrets to success is to put yourself in the mindset of a "For Profit" business owner.  Imagine this is YOUR money we're talking about.  Embrace G-R-E-E-D.  Don't embrace it for you, but do it on behalf of those you're charged with serving. 

There's a fitting quote from the movie Wall Street, spoken by the character Gordon Gekko.  In the movie, Gordon says, "The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind."  Now I'm not saying that ol' Gordy had the meaning of life all figured out.  But I am saying that he has a valid point:  Greed (in this instance) is good - and it serves you.

Value yourself.  Value what you're doing and for whom you're doing it.  And if you get nothing else out of this, value the money you can raise from auction and what can be done with it for your organization, ding-dang-it!!  If this were YOUR business and YOUR money, might you start to think a little differently?  I hope so!  Perhaps you are an entrepreneur in real-life (or in spirit)?  If so, then you already know that you scrimp, you save, you buy low (if you can't get it for free) and sell high.  You bust your butt to work hard and motivate your team.  You know you need to work smart, or hard, or both.  You should do the same with your auction fundraisers.  Treat them like little short-lived, for-profit businesses - that YOU own.

Follow these steps to success:

• Step 1.  Make a definite, purposeful goal for the auction.  How much are you going to raise?  Why are you raising it?  What will the money be used for?  How will it make you feel?  How will it make those you serve feel?  Imagine your organization (your business) having and using that money now.
• Step 2.  Make a real plan for attaining that goal.  Good inventory, good inventory, good inventory.  How much good inventory do you need to reach your financial benchmark?  How will you find and procure your auction inventory?  How will you get all this good inventory in front of as many bidders as possible?  What type of auction venue will best suit your needs and help you reach your goal?
• Step 3.  Execute your plan.  Just do it.  Git er done.  Period.  Some people refuse to fail, but not you - you insist on winning (or at least you should).  Motivate your team and make it happen.

The financial success of your auction will be determined by your goal and your plan, much of which will write itself based on your goal.  If you say you can only put together a $5k auction or a $50k auction, you're right.  This isn't a ball field with out-of-bounds markers.  Your only limitations are those you assign to yourself and by default, to your team.  Successful companies in the for-profit world know and use this - you should too.

IS AN ONLINE CHARITY AUCTION WITH MOBILE BIDDING RIGHT FOR YOU?

In a word, maybe.  Similar to any fundraising endeavor, the decision to conduct an online charity auction takes careful thought, planning and execution of key components in order to succeed.  Additionally, the various online auction venues themselves can differ greatly on everything from services offered to pricing.  So, where do you begin?

Begin with your goals.  What do you hope to accomplish?  How much do you wish to raise?  Is raising money your top priority or is throwing the best party in town number one?  Perhaps you’re looking for the perfect mix of money and party?  Are you planning a silent and live auction?  Are you hiring a live auctioneer?  Is your auction going to be tied to an event or gala?  Is your venue conducive to a typical silent auction or do you require mobile bidding?  These are just examples, but the decisions you make could significantly affect the outcome of your auction.

Once you’ve determined your goals and narrowed things down a bit you should be able to determine if an online charity auction is right for you.  Bear in mind that simply facilitating your auction online is NOT the magic bullet to achieve success.  Regardless of how it’s facilitated, success is achieved through procuring highly-sought inventory (stuff EVERYBODY wants) and then bringing enough bidders to the auction to create a competitive bidding environment.  Break either of these 2 rules and your auction won’t be pretty.

Traditional silent auctions can be limiting in that only those in attendance can participate.  I recently spoke with a client about a previous silent auction she facilitated - some of their biggest donors happened to be doctors at a local hospital and as luck would have it, the hospital had an event requiring the doctors to attend on the same evening has the auction fundraiser.  Needless to say, the doctors’ absence significantly impacted the dollars raised at the auction fundraiser.  Enter Mobile Bidding...

Mobile bidding enables you to leverage today’s technology to bring your auction to a larger bidding audience instead of requiring them to come to you or your event.  Let’s face it, we’re all busier than ever and we simply can’t attend every event or we’d all be professional event-goers.  It doesn’t mean we are refusing to support the cause, it simply means we need a more convenient way to do so.  Mobile bidding tied to an online auction is a great way to turn technology into convenience that in turn, directly correlates to higher participation and dollars raised in auction.  Welcome back to our auction, doctors.

When choosing an online auction venue there are a few things to consider.  First, make sure the service you choose includes mobile bidding.  Except in the shower, my smart phone is always on my person.  If you have a smart phone (which most of us do these days), I’m guessing you can relate.  Facilitating your auction online without mobile bidding is like buying a car without any doors... you can drive it, but it’s definitely missing something that would significantly enhance the driving experience.

All mobile bidding is not created equally.  Some auction service companies require that you use their devices at your event.  What you should consider:  1.)  The cost.  This can be prohibitively expensive.  2.)  Will the provider have enough devices for all of my guests?  How many other events is the company doing on the same night?  Too many events = rationing of bidding devices = not enough devices for all of your guests.  Assuming you choose to leverage technology and allow people to use their own smart phones (and save money), you may want to avoid a service that requires bidders to download an app to their phone.  The reason for this is that it’s yet another barrier for bidders to overcome before they can participate in your auction.  Instead, look for a service that has a mobile web app.  Mobile web apps optimize themselves based on the incoming browser with nothing to download.  Log on to the auction with your Android device and you see the site optimized for the Android.  Log on with your iPhone and you see the iPhone version.  Personally, I have the attention span of a gnat.  Make me jump through a hoop to get into your auction and I’ll probably get distracted by a shiny object before I ever get there.

Other important features of an online auction are Max Bid, Extended Bidding and a Payment Portal.  The Max Bid feature enables bidders to place their highest bid at their convenience, then let the auction software bid, incrementally, on behalf of the bidder, up to that bidders stated Max Bid.  This allows the bidder to “set it and forget it” as Mr. Ron Popeil used to say.  

Extended Bidding can be a very important feature and should not be overlooked.  As the name implies, this feature automatically extends the bidding on any item that receives a bid in the closing few minutes (depending on the service used).  This enables all interested parties to continue bidding, ensuring you raise the maximum dollars possible.  I have witnessed an auction raise an additional 16% of the total revenues AFTER the auction would have otherwise closed due to this feature alone.  Auction sniping is for eBay, Extended Bidding is for charity auctions interested in maximizing funds raised.

An online Payment Portal is another great feature.  Why would you leverage technology for your auction fundraiser, only to have all of your guests line up to pay at your cashiering stations as if they were bidding in an old-fashioned pen/paper silent auction?  Instead, utilizing a service with an online payment portal enables your bidders to pay conveniently online, even from their own smart phones.  Convenient online auction payments = no lines = happy bidders = happy auction staff.

There are many technology-based auction services to choose from such as BiddingforGood, BidPal Network, eBay, etc.  Some of these services work better than others for nonprofit auction fundraisers but some are missing key features outlined above.  All of these services will take a bite out of your auction proceeds through the fees they charge.  32Auctions is a free technology-based alternative, though it has its limitations (only free up to 20 items, etc) and it’s also missing some of the key features outlined above.  Additionally, if you process credit cards through 32Auctions (which is how most bidders prefer to pay), their fees add up quickly.

A relatively new entrant to the online auction fundraising marketplace is WinningCause.org.  Having won the “Community Favorite” award in a national contest for businesses sponsored by Sprint, WinningCause was awarded $50k by David S. Rose, founder of the NY Angels angel investment firm, in the boardroom of the New York Stock Exchange.  WinningCause used the competition as an opportunity to create and adopt a 3rd-party funding model that enables its nonprofit clients to utilize its state-of-the-art online auction venue and mobile bidding platform for free while keeping 100% of their auction proceeds.  In addition to providing all the key features mentioned above, this service also provides free online credit card processing, saving its clients 3% in processing fees.


Other features WinningCause has to offer are the ability to run a public or private auction, add an iFrame to your existing web page or blog page (think unlimited customization), creation of your own branded auction or even the ability to add your auction to your organization's Facebook page.
Note that WinningCause.org is currently running its Giving Back Promotion through which the company will match an additional 3% of the gross auction revenues (with no upper-end limitation) on any auctions booked with WinningCause by June 30th, 2012, to be facilitated any time in 2012.


Regardless of which technology-based auction company you may choose, there are significant advantages to capitalize on when upgrading your auction to a digital or online venue and if implemented correctly, adding an online auction component to a live event can greatly enhance the experience for your attendees. Choose your online venue wisely, ensure you have highly-sought, quality auction inventory and then follow a well-crafted auction marketing plan suited for online auctions and you are well on your way to success... Happy Bidding!

The ‘Want Factor’ Defined

How to keep BAD INVENTORY out of your next auction fundraiser.

Ever hear something like this before?  “I’ve got a desk I’d like to donate to your auction fundraiser...  I think it’s even made out of real wood!  I bet it’ll bring a few hundred dollars at auction, easy!  When can you come and pick it up from my house?”  I don’t know about you but I just had a cold chill run down my spine...

Sound familiar?  If you even considered taking this and adding it to your auction, or the brand-new size 6 women’s yellow sweater (tags are still on it), or the framed art someone tried to unload on you donate for your auction, then you gone done did and messed up!

If you’re willing to accept as auction inventory the things that didn’t make the cut in someone’s garage sale, your auction fundraiser is destined for FAILURE.

But fret not, there may be hope for you yet...

Ever hear of the ‘Want Factor’?  Didn’t think so...

The ‘Want Factor’ is a term I coined that will help ensure you have high quality inventory in your next auction, assuming you take one simple action.

You’re probably thinking, “I want high quality inventory for my auction, what do I need to do?”

Enter the ‘Want Factor’.  It’s so simple, yet sooooo effective.

First, let’s look at the effect BAD INVENTORY can have on your auction...

What is bad inventory?  The stuff nobody wants.  Period.  Ever walk into a store at the mall that’s filthy?  Old plates of half-eaten food or drinks from the food court left on the shelves in-between products... Disgusting!  

Now imagine that the inventory is old and stale to boot, looking like it belongs in a garage sale, not in a store at the mall.  But, this store also has the latest and greatest gadget... and at a great price.  Is anyone going to go in and find it amidst all the garage sale inventory?  Probably not.  

I know I wouldn’t.  Would you?

You see, bad inventory (or a dirty store) will dissuade people from going in to browse.  Subconsciously, we see garage sale inventory and in our minds, immediately reduce the perceived value of everything else in the store.  The same thing will happen in your auction.  Mix some bad inventory into your auction and you’ve just devalued the rest of your inventory.

In an online auction, your Product is your Store.  If it’s got great product, bidders will be inclined to browse your store and hopefully, make a “purchase” by placing a bid.

So how do you ensure you have great product?  The ‘Want Factor’.  Here’s how it works:

Okay, this is really complex stuff so pay close attention...

Ask yourself this question:  “Would MOST of the people I know want this item?”.

That’s it!  You’re DONE!  Well, sort of...

It really is this simple, but let’s expand on it a bit.  NOTE:  It’s good to do this BEFORE you procure any items so you don’t waste time procuring bad inventory.  Follow these steps:

1. I would recommend putting together a small focus group (other members of your team, friends, etc).  You don’t need many people, but a few different (and honest) opinions are helpful to keep you on the straight and narrow.  
2. Ask them this question:  “Would MOST of the people you know want this item?”  This is where it’s nice to have variety in your focus group (people of differing ages, financial status, etc).
3. When answering the question in #2, ask each person to rate each item on a scale of 1-10 with 10 being “Highly Wanted” and 1 being “Throw it in the Trash”.  The latest iPad, for example, would probably rate a 10, whereas a size 6 women’s yellow sweater might rate only a 2.
4. Now take an average rating for each item from your focus group and if the item rates a 6 or lower, DO NOT put it in your auction.  

As tempting as it is to put that old broken-down piano in your auction that someone paid $300 just to have the 2,000 lb monster removed from their grandmother’s estate, you’re far better off to have assembled the moving crew yourself and got paid $300 to haul the thing to the dump.  It likely won’t sell in auction and you’ll end up hauling it to the dump for free.

A few of my friends and I once helped to move one of these behemoths and believe me when I say that I’m lucky to still be alive and largely intact.  If someone offers one for your next auction, turn and run away!!  (and don’t look back)

Let the Want Factor help you put your next auction together.  If most of the people you or your friends know wouldn’t want the item, then why on earth would you put it in your auction?  

An auction isn’t the ‘magic bullet’ to move bad inventory.  The ‘magic bullet’ to a successful auction is Good Inventory.