How to Start an Auctioneer Business

Last Updated: October 8, 2020

Auctioneers coordinate the auction process, including evaluating items to sell, advertising the sale, starting the bidding process and ending with the highest bidder. If you have a talent for appraising items and talking to crowds, an auction business could be a great way to make income with little investment or overhead. Find out how to start an auctioneer business, including licensing and training requirements.

Steps

1
Find out about your state's auction license requirements. Many states require certification, which often includes training at a qualified auctioneer school.
2
Evaluate the competition. Find out who local competitors are. Visit their websites, and attend some auctions to find ways to compete. Local auctioneers may deal with specific geographic areas or items. Some ways to differentiate from the competition include targeting a specific town or specializing in certain items. Since many auctioneers only sell high-end items, holding auctions for vintage or used goods instead of antiques could be an opportunity.

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3
Network with other auctioneers. This is one of the best ways to learn the business. Local competitors might be hesitant to give you tips, but auctioneers in other geographic areas may be more willing to share. Join groups and societies both online and offline to learn more.
4
Get training at an auctioneer school. This may be required to get an auction license for your state, and even if it isn't, it's a good way to learn how to start an auctioneer business. Schools usually offer short training periods of a week or so. You will learn about voice techniques and bid calling, as well as aspects like advertising and state laws.
5
Learn how to appraise items. This will be part of your job in evaluating items to sell. Books, journals, and comparing items on online sites like eBay will help develop your appraising skills so that you can quickly get an idea of how much items can sell for.
6
Decide how to run your auction business. Some auctioneers travel and hold auctions on-site. Another option is starting an auction house, where you collect items to sell on commission or buy them outright. This type of auction business requires more overhead since you'll need space for storage and a budget for purchasing items.
7
Learn to overcome stage fright and to provide an entertaining atmosphere for auction attendees. Part of the appeal of auctions is that they are fun for participants. Write a few jokes and use humor to draw in the crowd's attention. Inflect the pitch of your voice for added excitement.
8
Seek assistance from local officials and a business adviser or attorney. Aside from state licensing, you may need to get permits and licenses to run a local business. You'll also have to find out how to register your business with the state and the IRS.
9
Advertise your services. Create a website with information about your auction business. List upcoming auctions, including items to be sold, on your website and in local newspapers. Offer services like free appraisals to prospective customers.

Community Q&A

Question

If I own the business running the auction, can I have a third party bid for me?

Community Answer

It is considered "shill bidding" and is illegal. If you are interested in the item, as an auctioneer, many states require you to disclose that the person is bidding against the auctioneer and whomever wins, wins. Your licensing laws will dictate if this is acceptable and ethical behavior.
Question

How can I start jewelry auctions in different locations?

Community Answer

Your state licensing laws will require the auctioneer to be on site with the contract. The only way that this may be acceptable is if if you are doing a live outcry auction online with a catalog, or if you are doing a catalog auction.