Silent auctions have the potential to raise a lot of money for your organization, but you have to be careful about how you set them up and see them through. The more organized you are from the outset, the more likely you’ll be to run a successful silent auction that brings in lots of profit.
At Bid Beacon, we provide valuable tools to help organizations of every size and type carry out silent auctions successfully. Here’s everything you need to know to make sure you get it right.
Key Takeaways
- Plan your auction at least 21 days in advance
- Secure items and sponsors early to boost promotion
- Choose an online platform for ease of bidding
- Run online auctions for 7 to 10 days to maintain interest
- Offer a diverse mix of items catering to different budgets
- Tailor items to your audience’s preferences for better sales
What Is an Online Silent Auction?
An online silent auction is a type of auction where bids are placed privately on items rather than through a live, public bidding process. Attendees can browse a selection of unique items and place their bids anonymously through an online silent auction platform.
Unlike a live auction, where an auctioneer announces bids as they come in, silent auctions allow participants to silently bid throughout the event, up until a set time limit is reached. Once the time is up, winners are determined based on the highest bid for each item.
How to Run a Silent Auction
1. Plan Ahead
One of the first steps in learning how to run a silent auction is planning.
What Bid Beacon’s data reveals: Auctions typically set up 21 days in advance, providing plenty of lead time to set up the auction, source items, secure sponsors, and promote the event.
However, please keep in mind that this is just an average; every silent auction is different and may require adjustments based on the type of event and your overall fundraising goals.
Tips for Success:
- Secure Your Items and Sponsors Early: When planning your silent auction, aim to finalize the item list at least two weeks before the auction begins. This will leave you with ample time to promote individual items or the silent auction as a whole.
- Promote Early and Often: Share auction details, highlight key sponsors or donors, and promote your high-value items with your audience as soon as possible. This is a surefire way to spark excitement and get your target audience ready to bid.
- Select an Online Platform: When it comes to running a silent auction online, using the right platform is key. Bid Beacon makes mobile bidding effortless, as guests can automate the bidding process while receiving instant notifications whenever they’re outbid.
2. Choose the Right Duration
While in-person auctions may last just an evening, online silent auctions have the luxury of running longer. For example, online silent auctions on Bid Beacon can run up to 365 days.
What Bid Beacon’s data reveals: On average, online auctions run for 9 days. Hosting an auction for just over a week helps keep guests engaged without the auction losing momentum and becoming stale.
Tips for Success:
- 7 to 10 Days for Online Auctions: A slightly shorter timeframe works for in-person events, but for a silent auction online, a longer duration can assist in maximizing bidding activity.
- Strategic End Times: Try scheduling your auction to close on a weekend or evening, as participation tends to peak during those times. Again, this will depend entirely on the type of fundraising event you plan, but it’s important to consider, nonetheless.
3. Choose a Variety of Items
Knowing how to run a silent auction requires an understanding of what kinds of items will attract attention.
What Bid Beacon’s data reveals: Our auctions have averaged roughly 50 items per event, but this shouldn’t be a benchmark every organization follows.
More items create a variety of choices, which is great, but it could divide attention and may result in fewer bids being placed. This is commonly referred to as Choice Overload. On the flip side, while fewer items allow for higher competition per item, you risk guests losing interest quicker, and the auction feeling stale.
Tips for Success:
- Select a Diverse Mix of Items: Include items across price ranges to appeal to all budgets, from high-ticket experiences like vacations and electronics to less expensive items like clothing, gift cards, and themed gift baskets.
- Consider Your Audience: Consider the average age of your guests, their financial situation, hobbies, and interests to guarantee your items sell well and tailor your auction items to them.
- Find Your Ideal Item Count: Take your guest list and divide that number by 2 to account for guests bidding as a group, like spouses who typically bid together. Then divide that number by 2 again so that you avoid having a 1:1 ratio of items to guests.
4. Encourage Active Bidding
Learning how to do a silent auction well involves maximizing the number of bids on each item.
What Bid Beacon’s data reveals: On average, items receive about 9 bids each. Each guest averages around 6 bids per auction, which speaks to a healthy level of competition per item and overall guest engagement.
Tips for Success:
- Set Competitive Starting Bids: Start bids at a lower price to attract early participation, but avoid pricing too low, as it may diminish the perceived value. To set a fair starting bid, take 25-40% of the item’s market price and use that value as the initial bid.
- Use Outbid Alerts: Notifications that alert guests when they have been outbid can encourage them to stay competitive, especially as the auction’s end approaches.
- Keep Bid Increments Reasonable: Small bid increments can increase total bids per item and keep more people in the game, but they won’t make sense for every item. For more expensive items, don’t be afraid to set higher bid increments to ensure they sell for a fair price!
5. Engage with Your Guest List
It’s important to create an environment that encourages participation, whether your guests are in person or attending a silent auction online.
What Bid Beacon’s data reveals: The data shows that the average silent auction on Bid Beacon has about 79 guests per event. For traditional silent auctions that run completely offline, this can seem like an incredibly high number.
Keep in mind that with an online platform, it is easier than ever to promote to a wider audience and have guests engage with your auction from anywhere.
Tips for Success:
- Use Social Media: Nowadays, almost everyone is on social media. If you already have a social following on one or more platforms, don’t hesitate to take your auction’s URL or QR code that Bid Beacon provides and share it online.
- Set Bidding Expectations: Remind guests that each bid contributes to the organization’s goals and the cause it supports. This can be particularly effective for charity or school fundraisers where guests feel personally invested and want to make a positive difference.
- Encourage Previewing: The sooner you finish setting up your auction, the sooner you can start promoting it. This allows guests to preview items before the auction officially starts, creating early momentum.
6. Choose the Right Platform for Smooth Payment & Checkout
An important part of learning how to run a silent auction online is ensuring a seamless payment and checkout experience. With an online platform like Bid Beacon, gone are the days when you need to chase guests after the event to pay for their winnings.
Bid Beacon’s online silent auction platform streamlines bidding and payment collection, creating a smooth experience for guests and organizers alike.
Tips for Success:
- Allow Instant Checkout: A platform that enables guests to pay immediately once the silent auction closes will help you avoid long lines and make the closeout process stress-free for your administrators.
- Send Post-Auction “Thank You” Emails: When using an online platform like Bid Beacon, easily export a list of all your winners and send them a personalized “Thank You” email. A little appreciation goes a long way and increases the chances of those same guests supporting your future fundraisers.
What Can Impact Silent Auction Success?
Audience Size
Not every attendee will be a bidder. Couples and family members will typically bid together to avoid competing against one another. With this in mind, it’s safe to assume that roughly half of the attendee list will be active bidders.
Key Takeaway: Aim to have 1 item for every 2 attendees.
Online Silent Auction Duration
If an auction is set to run for a week or more, it may make sense to increase the item count to keep the auction fresh and participants interested. The opposite is true as well. For example, if an auction running for a single day has too many items, the result will most likely be that items sell below value, or worse, are not bid on at all.
Key Takeaway: Base your item count on how long your auction is open.
Venue
As more silent auctions become online auctions, space constraints of the venue are becoming less of an issue. If your silent auction is being hosted in a hybrid format, with physical items displayed on-premise and bidding happening online, then space needs to be considered.
Key Takeaway: Depending on the size of your venue and items, you may need to adjust your item count. If you find that space constraints tend to limit the success of your silent auctions, try switching to an online auction platform.
Who Attends
Information such as age, gender, and income can help to determine not only how many items to include, but also the types of items to include.
For example, if you are planning a silent auction at a prestigious golf course, you may notice that your attendee list is made up of adults aged 35-65 and relatively wealthy. In this case, you may want to procure fewer, high-value items. If you can select items that attendees value, your silent auction will undoubtedly see an increase in revenue generated.
Key Takeaway: The more information you have about your audience, the better off your silent auction will be.
How to Launch a Silent Auction in 5 Steps
Now that you know how to run a silent auction, it’s time to get ready to launch! Here’s how to do it.
1. Strategize
Put together your silent auction committee, select a chairperson to oversee the proceedings, and make key decisions about the purpose of your silent auction. Be sure to:
- Choose your audience. Who will this auction target? What’s their average income level, and what items are they likely to bid on?
- Set a fundraising goal. How much money do you want to raise with this event? Review previous silent auctions your organization has put on to determine what’s realistic and identify successful trends.
- Set a time and place. When will your silent auction take place? Most fundraising happens during the last three months of the year. December is statistically the most successful month for fundraising—but also the busiest.
- Find the Right Venue: If you’re hosting a physical auction, the venue you choose will also be important. Choose a location that’s seasonally appropriate and that has room for both your items and guests.
- Go Digital: Consider hosting your auction online, allowing in-person guests and supporters who aren’t attending the event to participate virtually.
- Begin marketing. Once you know where and when your auction is happening, it’s time to announce the event and start building awareness among your audience. Send out save-the-date emails and social media reminders.
2. Create & Collect
This is the step where you’ll need to finalize exactly how your silent auction will work. Begin this step at least 2-4 months away from the event and keep it going right up until it begins.
- Create the event. Even if you’re holding a physical silent auction, it’s a good idea to create the event on a digital platform like Bid Beacon. Doing so gives you tools to invite your guests, catalog items, set up payment methods, and feature your sponsors. It also lets guests participate in person or virtually, opening your event to a larger audience.
- Add item descriptions and images. Make sure the donations you’ve confirmed with sponsors have accurate descriptions and high-quality photos.
- Set up payments and shipping. Make sure you’ve planned how you’ll accept payments and send items to the guests who win them after the event. Bid Beacon simplifies this process by accepting payment via Stripe Connect, PayPal, Stripe (non-Connect), and Square.
- Set up bid sheets. How will your guests actually place their bids during the event? You’ll either need to obtain physical sheets and make plans to monitor them during the event, or use an app like Bid Beacon to let guests place bids electronically.
3. Build
Plan on sending this campaign out as soon as you have solidified your mailing list and the date, time, and location for your auction. This initial email campaign should act as an introduction to your fundraising event.
To create awareness:
- Make sure you provide all the key pieces of information relating to your silent auction (date, time, venue, etc.).
- Provide some background information on what cause you’re fundraising for and who’s involved.
- If you have any sponsors lined up already, this is a great time to acknowledge them.
- If you have a fundraising goal in mind, mention that as well.
To generate excitement:
- Showcase one or more of the available auction items. Think of this as a little teaser for your invitees.
- Remember to provide appropriate details for any items previewed in your campaign.
- Remember to include professional-looking photos.
4. Launch
Now we come down to running the event itself.
- Set rules for bids. Make sure you’ve set appropriate starting bids for each of your items. Doing so will help you keep bidding competitive and result in higher proceeds.
- Start the event. If you’re conducting a physical auction, you’ll conduct an “all hands” meeting with your employees or volunteers and distribute an event schedule.
- Manage items. As guests bid on your items, make sure to keep track of how each item is doing. If you’re using Bid Beacon, you can simply view the status of each item in the app and add or remove items as long as the event is still running.
5. Wrap Up
Now that your event is over, you’ll need to wrap it up and plan the next one!
- Collect proceeds. Make sure the guests who won your donation items pay for them! Collecting payment before you distribute items is highly recommended. Bid Beacon allows you to collect payments directly through the app or offline, according to your preference.
- Distribute items. If you held a physical auction, guests may be able to pick up some or all of their items from you at the end of the event.
- Send thank-yous and plan your next event. Finally, make sure to thank your guests—and your sponsors—for participating in your successful silent auction.
Make Your Next Silent Auction Soar with Bid Beacon
Hosting silent auctions is increasingly becoming the go-to choice for fundraisers, and Bid Beacon’s dynamic and easy-to-use digital platform will make your next silent auction easier for hosts and bidders alike. Get started with your next silent auction today!
FAQ
What are the basic rules for a silent auction?
The main rule for a silent auction is that the highest bid at the auction’s closing time wins each item. There should be clear payment instructions, time limits for the auction itself, and rules against changing or retracting bids.
What is the best way to run a silent auction?
Hosting a silent auction online makes it easier for everyone involved. Bids can be placed directly from computers or phones, and participants can monitor bidding on each item without having to stand around and check the bid sheet.
What sells well at a silent auction?
Vacations, sports memorabilia, and experiences sell the best at silent auctions. However, it varies depending on your audience.
