Sydney Johnston

Online auctions are superb teachers for those of us who own small businesses, if we only have the eyes to see. Here are five lessons from the month of October.

1. The Story Of Iggy

I spotted an ad in a monthly business magazine which said, "Wanted: a home business that REALLY works."

I contacted Iggy (not his real name, of course). He was very enthusiastic and promised massive action. A week later, Iggy called to tell me that he had bought a two week ad in a local newspaper. BUT ­ he "didn't have time" to handle all the calls that were bound to come from this very un-targeted, small newspaper. So, he used my phone number so that I could handle the flood of business. Of course, this meant that anyone interested in his ad would have to call a long distance number, rather than use Iggy's local number.

Not surprisingly, I didn't receive a single call from his ad.

Guess what I saw in the next month's issue of the business newsletter? "Wanted: a home business that REALLY works."

Contrast Iggy with a brave and determined auction site, epier.

http://epier.com

ePier began in 1998 as a general auction site with a very tough task ­ playing in the same pond as eBay, Yahoo and Amazon auctions. Yet, ePier hung in there and is finally in the black!

Lesson: Hockey great Wayne Gretzsky said it best: "100% of the shots you don't take don't go in." Iggy didn't stick it out, ePier did. Iggy loses, ePier wins.

Does determination guarantee success? Of course not. But, lack of determination guarantees failure.

2. Goliath vs. Goliath

Giant eBay and Giant Amazon have been slugging it out in court because eBay hired a former top executive of Amazon and Amazon has been worried about its corporate secrets.

While the giants are fighting, small niche sites have been quietly carving out their spots. A great example is a small auction site which sells ... beads.

http://justbeads.com

Justbeads recently announced that it has experienced a 300% growth rate this year, increasing from 1,400 items on Jan. 1 to 4,200 listings on August 24. There has also been a 300% increase in registered users and average daily completed auction sales during that period.

Lesson: Don't try to compete with the multi-million dollar giant ­ unless you have similar resources. If you play on their turf, you are bound to lose.

Instead, find your own niche and use your natural advantages, like your ability to act swiftly, think more creatively and more exactly target your customer.

3. Gloom And Doom

Five minutes on CNN is enough to convince us all that the economy is a disaster and we are facing terrible times.

Yet, eBay has just posted record net revenues of nearly $200 million - higher than all the predictions from the so-called "experts". Further, eBay is confidently predicting net revenues of $200-210 million in the fourth quarter.

If the economy is so terrible, how are we to understand this?

History tells us that there is great money to be made in "bad" times, just as there is in "good". Whatever your business is, there is most likely a way to adapt to these unsettled times.

For example, thousands of people are newly unemployed, or fear that termination will come any day.

Yet, they still need to eat and pay their bills. Many of them are bound to be interested in starting their own business. If you are in the business of helping others make money, your skills and knowledge will be in greater demand than ever. In other words, this is a golden opportunity for you.

Lesson: Instead of being frightened or depressed by today's economic news, call upon your creative powers to figure out how you can fulfill a need or provide a service that will grow your business, rather than allowing it to decline. Everything is a matter of perspective. If you see this as a good time for you, it can be exactly that way.

4. Thank You, Barry Bonds

Baseball slugger Barry Bonds stepped up to the plate, swung his bat and hit his 73rd home run ­ right into the arms of sports fan Patrick Hayashi.

Due to the fact that Mark McGwire's final home run baseball sold for $3.05 million in January of 1999, Hayashi has hired an agent to sell this historic ball.

The agent says the estimated sale price is $1-$2 million and he has already received private offers of $500,000 to $1 million.

Lesson: The reason this baseball is so valuable is because it is utterly and totally unique.

What powerful, in-your-face, totally and absolutely unique benefit can you deliver to your customers and prospects? What can they get from you that they can't find anywhere else ­ especially from your competition?

The reason this baseball is so valuable is because it is a monopoly ­ it is the only one in the world. The only way a small business can become a "monopoly" is by delivering excellence in one area and becoming the resident expert ­ you are just so darn good at what you do that no one can touch you.

5. A Lesson From Crooks

Online auction sites have been plagued with sports fraud. Lots of unsuspecting buyers have spent money on cards and memorabilia they believed to be genuine ­ only to find out, to their dismay, that they had been conned.

In response to this problem, a sports auction site, http://www.mastronet.com/, has teamed up with PSA, the largest authenticator of sports collectibles. Together, they will certify the authenticity of items, and thus reassure potential buyers. Large auction sites will now be under pressure to take similar measures or lose many of their customers.

Lesson: What problems exist in your area of business? Instead of being distressed at what's "wrong", take a clear, hard look. Forget your emotions about the difficulties and change the quality of your questions. How can you take advantage of problem areas to grow your business?

There isn't any magic formula that guarantees small business success. However, these five lessons will go a long way toward helping you to achieve the results you so greatly desire.

Read More Articles by Sydney Johnston Author of Make Your Net Auction Sell! Published by Site Sell.com at Auction Know How.com

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