How do auctioneers get paid?
Auctioneers earn commission. That's what makes being an auctioneer so great. The more profitable auctions you conduct, the more you make. And it's a win-win for the auctioneer AND for the client! Auctioneers generally earn a commission on total sales; this in turn means that they are working their absolute hardest to get the most money for items they sell for clients.
First let's clarify a few things. Some auctioneers work for other auction companies and may be paid a flat fee, but they can sometimes earn commission. Auctioneers that run their own company are paid by commission. Depending on the contract, it can be 10%, 20%, 30%, or higher and some auctioneers charge a minimum amount per auction event. As an auctioneer, it's up to you to determine how much you want to earn. A lot of it depends on the type of auction, the individual client, and the product. Regardless, as the auctioneer/auction company, you can negotiate your rate. In addition, you can also charge a buyer's premium--this is an additional amount that is paid by the buyer. Usually, the buyer's premium is used to cover things like fees for credit cards or online platform fees. However, because it's up to the auctioneer/auction company, it can be used to help negotiate the original contract.
Professional auctioneers will ALWAYS include the following in a written contract--commission rates, any fees and expenses that will be paid upfront, the type and range of work needed to market items for auction, and any additional fees beyond the costs to run a successful auction such as advertising costs. As a client, make sure you get a written contract so that you know what you are paying your auctioneer/auction company. As a professional auctioneer, make sure you get a written contract so you know exactly how you are going to get paid. (Learn how to write professional contracts as an auctioneer in our Pre-Licensing course!)
Although commission rates and buyers' premiums can differ, auctioneers have much more control over their earning power than other professions. Additionally, clients who utilize auctioneers can be sure that they are getting the absolute best price for their assets because the auctioneer/auction company makes more money when the client makes more money.
Want to learn more about becoming an auctioneer and having more control over your earnings? Call us today at 229-212-2036 or click here to learn more.
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