Catapult Your ROI: Increase Your Profit by 20 Percent or More

Many event organizers who won't hesitate to pay for entertainment, food, beverages, a band, or even decorations are unwilling to hire a professional fundraising auctioneer. However, retaining a professional benefit auctioneer is an investment that will net far more revenue for organizations than any other aspect of an event.

It's the experience of a professional benefit auctioneer that can help you shift your benefit auction event and donor base from a transaction model to a philanthropy model. This is how you achieve your maximum return on auctioneer (ROA). A professional benefit auctioneer creates an entertaining and profitable event to which guests eagerly return year after year—a key to vital donor retention. A pro can help take the risk out of fundraising by generating more profit, awareness, and excitement for your organizations. This is what I mean by ROA.

Trained professional benefit auctioneers use innovative, proven strategies that help you maximize your full potential—not only in raising money, but also in engaging your donors. For example, a professional knows how to design and conduct an inspirational and profitable fund-a-need special appeal. This is the gold standard of fundraising at events. A successful fund-a-need can and often does yield more money than the live auction. We'll discuss this further in Chapter 13.

All Auctioneers Are Not the Same

What's the difference between a benefit auctioneer, a commercial auctioneer, and a volunteer auctioneer? A benefit auctioneer is a licensed professional with unique training, and he or she is dedicated to serving nonprofits, schools, and associations. Also called fundraising auctioneers, many benefit auctioneers offer consulting and other services to support fundraising. A commercial auctioneer is also a licensed professional; however, his or her focus is often in a specialty such as automobiles, antiques, real estate, industrial, livestock, or art. A volunteer is an organizational leader, celebrity, or media personality.

Audience Motivation

At a charity auction, the goal is to inspire your guests to bid over the value of the auction item. I've named this “Philanthropic Bidding!” It's not what you get; it's how much you give. This is a paradigm shift. Unfortunately, many people see benefit auctions as places to find the next bargain. That's the transaction approach. In the philanthropy model, the emphasis is on giving to a cause. A professional benefit auctioneer makes this happen in spades.

Benefit auctions have multiple goals: to raise funds, to communicate the impact of donors' bids and contributions, to create awareness of the cause, to have an exciting, fun social environment, and to create amazing opportunities for the long-term cultivation of guests, turning bidders into major donors. Both the nature of the audience and the motivation of its members are very different from what you'll see at a commercial auction. Guests at a benefit auction are donors and sponsors who may not even know much about the organization yet, but have come for a wonderful evening.

This means that the auctioneer has to help guests understand where the money goes and, more important, how their gifts can help transform the life of an individual, a family, or a community. The items at a benefit auction are typically different than a commercial auction, too. At a commercial auction, typical items are antiques, collectibles, intellectual property, or cars. At a benefit auction, the items may include travel and dining packages or exclusive experiences.

Lead Time

Benefit auctions have a very long lead time—6 to 11 months in some cases. Many benefit auction teams start planning next year's event the day after the post-auction evaluation meeting. This is because in the philanthropic model, benefit auctions are golden entry points for donor identification and cultivation. A professional fundraising auctioneer offers invaluable pre-event consultation to help organizations turn a laser focus on year-round donor cultivation.

The Style of Selling: The Chant (That Thing Auctioneers Do)

You're probably familiar with that quick rhythmic chant that auctioneers use to keep the bidding going and raise money. It's named bid calling. The chant for benefit auctions is markedly different than that for commercial auctions. For a benefit event, the selling chant is much slower and clearer. Sometimes, depending on the audience, a good fundraising auctioneer communicates the bids without any chant at all. The ability to be flexible and match your unique audience is an important skill.

Automobile auctioneers, for example, sell one car approximately every 45 to 60 seconds. An antique auctioneer might sell 100 to 150 items an hour. In contrast, the benefit auctioneer sells fundraising auction items at a pace of two to two and a half minutes per item. This includes describing the item, thanking the donor, selling the item, and allowing for applause to acknowledge the winning bidder. This slower pace is for good reason. Auction guests at a fundraising event need to understand clearly how their bidding will benefit the cause, and they also need to know the details of the auction item descriptions. Most importantly, the benefit auctioneer will need to adopt a pace where the audience can clearly follow the increments and bidding action.

Benefit auctioneers also inspire higher bidding because they incorporate the organization's mission message into their chants to remind guests continually and warmly that their contributions makes a difference for the organization. Why? Because the event is, in essence, the gateway to more deeply engaging your donors. This underscores the value that a professional benefit auctioneer brings. She can change the mindset of the audience from a transaction model to the philanthropy model of giving.

Showmanship and Fun

According to the National Auctioneers Association (NAA), 92 percent of people report “fun” as the number one reason they attend auctions.¹ The unspoken mandate at fundraising auction events is that guests must have a fun, entertaining experience and feel a connection to the cause. A fundraising auctioneer has the advanced education and skill to keep up the excitement and momentum. Benefit auctioneers are really in the entertainment business. They know that when guests come to benefit auction events, they like to have fun. Professional benefit auctioneers have the skills to design and lead interactive and revenue-producing activities that get the audience excited and engaged.

When it's time for the mission moment story in the fund-a-need, fundraising auctioneers have unique training, insights, and experience. That means they're better able to hold the emotion, inviting guests to give generously by communicating the impact their gifts will have.

Advantages of a Professional Fundraising Auctioneer

A professional fundraising auctioneer will help you comprehend what sells best. They will provide you with sound advice based on their experience of what raises the most funds at benefit auctions. They will also help you understand which items are not selling well.

Often, nonprofits ask me, “How can you tell if an item should go in the live or silent auction?” A professional benefit auctioneer can consult with nonprofits to bring more value, ideas, and revenue-generating activities to the market for his clients.

Fundraising auctioneers know the best order in which to auction items to create the optimal flow and the greatest excitement. They're able to squeeze more money out of an event by maximizing bidding. Today, we can no longer rely on an auctioneer who just sells items. A successful benefit auctioneer sells the mission of your organization. That's what makes a professional auctioneer's fund-a-need so inspiring and compelling.

Your Magic Formula: Return on Auctioneer (ROA)

There are gifted benefit auctioneers who have dedicated themselves to working with nonprofits because this is their passion and their life's work. Many of them have highly specialized training, expertise, and commitment. There are outstanding fundraising auctioneers across the country available for you to hire.

Hiring a professional benefit auctioneer is not a cost. It's an investment. How much of a return on that investment can you reasonably expect? Ask this question: “How much money do you leave in the room without the hand of an experienced, professionally trained auctioneer, especially someone who considers this to be her life's work?”

This is a paradigm shift from thinking about the cost of an auctioneer to understanding the return on the investment that comes when you retain a professional fundraising auctioneer who will net more funds for your organization. A professional fundraising auction specialist is a distinct asset to your core leadership team, not a liability expense on a spreadsheet.

It makes me scratch my head when an organization tells me they will be using a VIP, a celebrity, a media personality, or even a commercial auctioneer for their charity auction because it's cheaper. This short-sighted approach is a common misconception and represents an easy way to leave money in the room and lose long-term connections to your donors.

What Do Organizations Want?

Several years ago, I conducted qualitative research analysis from over eight years of events. Hundreds of nonprofits from all over the United States answered the question, “What can benefit auctioneers do to raise more money?” There are seven core competencies that nonprofits expect from their auctioneers:

1. Be an ambassador for the mission
2. Offer consulting and pre-auction planning
3. Generate momentum and excitement
4. Engage and match the audience
5. Exhibit polished professionalism
6. Be adept in advanced fundraising auction techniques
7. Exude fun and showmanship

Let's look at each of these individually.

How Nonprofits Benefit: What's in It for You

Benefit auctioneers are excellent at asking for money, because that's their primary function. From a nonprofit perspective, is there anyone better suited to represent your mission and graciously ask your guests to become more involved and give more generously? This is a distinct skill set that very few celebrities, volunteers, or local TV weathercasters have. When you're considering who to hire, this is the primary skill you need to evaluate. Graciously asking for money and inviting guests to be generous on behalf of an organization is a part of the unique skill set of auctioneers who specialize in fundraising. Remember, it's not how much money a professional benefit auctioneer costs, it's how much more money that auctioneer will raise for your great cause.

Other Services Fundraising Auctioneers Offer

Professional benefit auctioneers can offer additional services, including consulting and pre-auction planning, training, conducting seminars, and staffing auction check-in and checkout services. Many auctioneers represent several different fundraising-auction software and credit card processing companies. Some auctioneers offer innovative auction technology, including hand-held bidding devices and online auction programs. Other services include registration and cashiering services, bidding assistance, additional auctioneers, and additional auction staffing. Some benefit auctioneers have access to consignment items. They can provide benefit auction supplies, such as bid numbers, bid forms for the silent and live auctions and the fund-a-need, spotter flashlights, written guides and supplemental materials, and stage numbers. When you talk to benefit auctioneers, ask them what services and supplies they offer.

The Auction Team: Professional Auctioneer Bid Assistants

Bid assistants help the auctioneer spot bids and create audience excitement and engagement. There's so much riding on the success of a benefit auction. Big audiences require more management, and professional benefit auctioneers have to keep the audience covered. Professional auctioneer bid assistants ensure accurate bid spotting and communicate with both the lead auctioneer and auction guests what's happening during the live auction and fund-a- need.

Professional benefit auctioneers also bring other team members along. For example, they might bring a manager from their auction company. They could also bring a person to serve as a liaison to different volunteer groups. Some benefit auctioneers have registration, cashiering, and technology services as well.

How to Retain a Great Auctioneer

Retaining the right professional benefit auctioneer is one of the most important steps you can take to maximize fundraising and create an exciting, fun event. Here are eight steps to help you match the best professional auctioneer with your great cause:

1. Interview your top prospective auctioneers via phone or in person.
2. Visit their websites and blogs. Watch videos. Check out their resources.
3. Check references.
4. Insist on a written proposal and agreement (a law in many states).
5. Ask for their client lists—and call a few organizations not on the reference list.
6. If possible, attend a similar benefit auction that each auctioneer is conducting.
7. Ask how much experience each auctioneer has with fundraising auctions.
8. Learn as much as you can about their styles, mannerisms, and attitudes.

How to Interview an Auctioneer

When hiring a professional benefit auctioneer, you'll want to find out how much experience he or she has with fundraising auctions. You'll want to learn as much as you can about his or her style, mannerisms, and experience in fundraising and working with your type of donors and guests. It is critical to match the benefit auctioneer with your specific audience.

Don't be afraid to ask in-depth questions. One of my favorite questions is, “What is the toughest situation you've ever encountered as an auctioneer and how did you solve it on stage?” That tells you how someone thinks on his or her feet.

One reason people bring in a professional benefit auctioneer is that challenging and even dangerous situations can arise. Here are some true stories. One time the entire backdrop, scaffolding and sound speaker set crashed down behind me as I was auctioning the premier live auction item. I literally jumped off the stage hand-in-hand with two volunteers—probably saving all three of our lives. When my feet hit the floor, I immediately continued selling that live auction item with the last bid of $1,000, asked for $1,500, and sold it for $10,000 without any interruptions to a generous appreciative audience. It was my first time as a Families First auctioneer and that item alone fetched more than their last entire live auction net proceeds! I've experienced a table centerpiece catch fire. While selling, I just poured a pitcher of beer on the flames and kept up the auction bidding at a heated pace. I've had a sound system go completely dead and used my Division I Saint Louis University volleyball coach voice to capture the audience to continue to bid high.

Anyone can be great on autopilot, be sure to find out how a prospective benefit auctioneer will handle unexpected and tough situations. Ask him or her to share a true story from a previous benefit auction. You can also prepare a challenging case from one of your previous auctions and ask your prospective auctioneer how he or she would address it for you.

Competencies of a Benefit Auctioneer

It's really important to expect a benefit auctioneer to know your mission and be able to articulate it with passion and conviction. They need to have clear and understandable bid calling. An exceptional benefit auctioneer will be able to include your organization's cause and talking points in the bid calling in a way that is not a fast-selling auctioneer style, but one that helps the audience become authentically engaged in the mission.

Your auctioneer needs to tell guests why it's important to participate generously. He should recognize donors and sponsors. In terms of showmanship and fun, each benefit auctioneer has his or her own personality. Make sure it's a match for your specific audience. Manners and smiling are critical. Benefit auctioneers should be punctual and arrive early to train the live-auction volunteers, do the sound and light check, and go over any final details. When the benefit auctioneer greets guests during the silent auction and thanks them for their generous bidding at the end of the night, it can make a huge difference. Fundraising is friend-raising, and creating relationships with guests will have positive long-term implications for your nonprofit. A professional benefit auctioneer's style, positive attitude, pacing, attire, showmanship, and ability to engage the audience around the mission are critical.

Auctioneer Compensation

There's a wide variety of compensation structures for benefit auctioneers. Many professional benefit auctioneers create a customized services package for each client based on the specific needs of each auction and the value of the project. Sometimes auctioneers will combine all of their services into one fee. Other times they break their services out in a menu format, which enables clients to look at itemized costs. A professional benefit auctioneer can be compensated in numerous ways: flat fee, combination of flat fee and commission, commission², flat fee and bonus, and a services premium. Other options include fees based on a scale and fees for specific services. Another compensation structure is known as a buyer or services premium, where guests pay a small percentage on top of their purchases to cover the costs of services such as an auctioneer, as well as for other services. With this method, the organization retains the full amount of the auction profit of items sold at the auction. Fees can also be based on the size of the benefit auction or the additional services provided by the auctioneer.

To serve the broad constituency of nonprofits, schools, charities, and organizations, benefit auctioneers provide a wide scope of compensation structures in comparison to commercial auctioneers, who most typically are compensated on a commission basis.

Professional fundraising auctioneers also provide various levels of consulting and professional services. Consulting fees may be included with other professional auction services or may be presented as a separate project. Consulting fees are based on the value of the professional guidance to the overall project.

A federal law prohibits auctioneers from talking to each other about fee structures, which prevents price fixing. This means that each nonprofit should have this conversation directly with each benefit auctioneer.

Your Mission Ambassador

Organizations should expect benefit auctioneers to communicate the impact of their causes and engage the audiences in their missions. This is what I call being an auction ambassador. In this role, the benefit auctioneer promotes the mission of the organization by highlighting the organization's unique outcomes and services. She also showcases the brand and tells transformational stories right before the fund-a-need. The benefit auctioneer is the spokesperson or ambassador for the nonprofit's cause, focusing on how programs and services transform individuals, animals, families, or communities. This is critical because it motivates guests in a new positive way and effectively communicates the mission. Through the rapt attention of the audience, the benefit auctioneer is involving as many people as possible. Make sure your benefit auctioneer knows exactly where the funds from the benefit auction will go. Set up a meeting to review this. Provide your auctioneer with a bulleted list so he or she can give the audience members specifics about how their gifts will make a difference. The bullet points are critical.

The Fundraising Auctioneer—Your New Philanthropic Partner

Months prior to your auction, retain your auctioneer as a vital member of your executive event team. Since great auctioneers are booked sometimes a year or two in advance, it's wise to call your auctioneer first before you commit to a date and auction venue. A professional fundraising auctioneer is an expert advisor and consultant. He or she will communicate the impact of the donor's gift, serve as an ambassador for your mission, and be uniquely positioned to engage donors at the event.

Your Auctioneer Can Be Your Coach Too

How will you catapult your fundraising to the next level?

Learn from the pros. Hire a coach.

A benefit auction consultant is an invaluable advisor who helps you design an exciting and memorable fundraising event to boost your bottom line and to drive donor engagement. As early as possible, months prior to the event, a skilled and savvy auction consultant can provide expert advice on powerful revenue ideas, capitalizing on new trends, leveraging donor and bidding psychology, energizing your program, communicating the impact of your mission, and adding fun and pizazz.

If you're lucky enough to find a seasoned fundraising auctioneer who can also serve in a consulting role, you'll be surprised by what a difference his or her counsel can make. Fundraising auction consulting topics can range from basic auction logistics to advanced donor cultivation strategies. The following is a sample list of ways a benefit auction consultant can provide expert advice to nonprofits, associations, schools, and charities.

Fundraising Auction Consulting Topics

• Live auctions
• Silent auctions
• Fund-a-need special appeals
• Innovative money making games
• Auction item acquisition methods
• Selection of best-selling silent and live items
• Proper sequencing of live auction items and bid increments
• Benefit auction design, budgeting, and planning
• Designing timelines, event structure
• Benefit auction logistics, forms, and procedures
• Streamlined registration and cashiering
• Pre-bidding and absentee bidding
• Technology: benefit auction software, mobile bidding, online auctions
• Audio-visual specifications
• Tour venue, recommend floor plan, and set up
• Adding music, entertainment, and fun
• Audience development and engagement
• Donor cultivation and retention
• Sponsorship engagement and benefits
• Volunteer, board, and staff training
• Auction committee motivation and training
• Fundraising storytelling at auctions
• Coaching speakers and fund-a-need storytelling
• Maximum impact marketing and messaging
• Advice on scripts and program design
• Review of marketing materials and auction catalog
• Strategic analysis of auction revenues and procedures
• Pre- and post-auction evaluation
• Custom live workshops, teleseminars, and webinars

Note: this list is just a sample of benefit auction consulting areas, so be sure to ask your auctioneer about other topics and services he or she provides.

The following example showcases the value of retaining an auctioneer who specializes in fundraising auction consulting. AIDS Resource of Wisconsin initially contracted with Kurt Johnson Auctioneering for professional auctioneering and consulting services.

Kurt Johnson's professional consultation focused on three vital areas: first, Kurt provided advice to ensure that live auction packages matched the financial and emotional demographics of the audience; second, he taught them how to leverage leadership gifts for fund-a-need to maximize the untapped large donor potential already in the room; third, he helped them design an inspiring speaking program and timeline to meld the complexities of a major live auction and fund-a-need with large-scale production elements such as sound, lighting, music, video, and talent.

Dan Mueller, Vice President & Chief Development Officer at AIDS Resource Center of Milwaukee, Wisconsin describes their results. “We contracted with Kurt Johnson Auctioneering in 2010 when we sensed that, left to our own devices, our live auction was not as successful as it ought to be. In the five years that we have been working with Kurt Johnson Auctioneering, our auction revenue has increased 46 percent and our fund a need has increased 96%. Learning from the pros pays real dividends.”³

Additionally, a fundraising auction consultant can be a powerful philanthropic partner even when you already have secured your auctioneer. For example, in 2013, the Sonoma Harvest Wine Auction retained me as their auction consultant, even though the executives already had retained their auctioneer. As a consultant, my core strategy was to intensify audience development and cultivation that targeted vintners, stakeholders, big bidders, and major donors. Further, I advised the Sonoma executives and board to create an inspiring mission messaging campaign that engendered community pride for the outpouring (pun intended) of charitable generosity at their auction.

Designing the centerpiece of fundraising and donor engagement, I provided advanced strategies to design a riveting fund the future appeal to support literacy in Sonoma. My consulting included choreographing an emotional success story, personally coaching the program speakers, and showcasing the powerful impact of reading to the audience. The result—records were shattered: from $700,000 in the live auction and fund-a-need in 2012 to $1.4 million in 2013 to over $4 million in 2014. However, numbers tell only one side of the story, as other valuable benefits included building capacity and intensifying fundraising leadership for the key stakeholders and boards as well as energizing the entire community to continue to create and celebrate a world-class fundraising auction in Sonoma.

Your auctioneer is your fundraiser event's quarterback, but an auctioneer who offers consulting can also be your strategic coach, year-round. He or she can be by your side between seasons to keep you motivated, refine your skills, point out weak spots in your strategy, and help you overcome every obstacle. A benefit auction consultant can strengthen your organization's team and take your fundraising and organization to the next level.

Learn from the pros. That's the playbook for success.

Conclusion

Thriving in today's fundraising environment requires new, advanced skills from auctioneers. An experienced fundraising auctioneer is an invaluable philanthropic partner who can help organizations cultivate guests, make sure they have a fantastic time, and engage them in generous bidding. Furthermore, the benefit auctioneer acts as a spokesperson for the organization's cause, focusing on how to communicate the impact of donors' gifts. A fundraising auctioneer is uniquely positioned to motivate guests in a new, positive way and involve the entire audience. First and foremost, he or she will create a climate of giving in which all the donors feel great about their gifts and are excited to be present. They'll say, “I love the auction. I'm so happy to donate. I cannot wait to come back next year to bring my colleagues and friends and become more involved in this great cause!”