Have you heard of virtual auctions? They are a great way to raise funds for your nonprofit, and because these auctions are held online, they reach a much wider audience. They also enable participation during times when social distancing is recommended or for those who otherwise are unable to leave home for health reasons.
Here we cover the ins and outs of virtual auctions, including how to prepare and advertise, what to look for in a hosting platform, and ways to optimize engagement and returns.
A virtual auction is just like a regular auction, except that it is held online. And just like with regular auctions, virtual auctions can be held in a live format or as a silent auction. Instead of in-person bidding, participants place bids virtually, usually through a virtual auction platform designed to orchestrate and facilitate most aspects of the auction.
The differences between live and silent virtual auctions are similar to the difference between in-person live and silent auctions. For example, live auctions happen in real-time and are hosted by an auctioneer who presents each item, while silent auctions have several items on display at once that interested individuals may bid on. With a live auction, participants bid against each other for one item at a time. With a silent auction, participants add their bids to a bid sheet for each item.
When it comes to the virtual setting, a live auction must happen at a specific time, and all participants must attend during that time if they wish to bid. Silent virtual auctions, in contrast, may take place over longer time periods–such as a week or more–and hence enable people to participate at times that best suit them.
There are, of course, pros and cons to each format. Live auctions can generate more excitement and competitive bidding, but sometimes there are limits on the number of participants, or some individuals may be excluded due to time constraints. Silent auctions allow more people to participate but may need motivation and reminders to encourage competitiveness and higher returns.
If you’re considering hosting a virtual auction, you’ll want to ensure you get the right tools in place and start planning and preparing early. The following sections outline key things to remember as you prepare for your event.
You should take some time to find a virtual auction platform that can support the functionality you need for running a smooth event. Some key elements to look for in a platform are as follows:
Planning should begin at least six months before the scheduled event. This allows for enough time for planning, procuring items, and marketing. Once you’ve set the date, be sure to form a team and set goals such as how much you hope to raise, how many people you plan on reaching, and how many items you will auction off (as well as where you will get those items from).
From there, you should develop a marketing strategy to build up interest and hype prior to the event. Another part of planning is the event logistics–how will the auction be run? If it is a live event, when will it occur, in what order will items be presented, and how will the bidding unfold? If it is a silent auction, you may want to plan for things like a staggered release of new items for bid so that you maintain interest and engagement throughout.
Keep in mind that there is more to do and more insights to be gained after your event is over. Be sure to distribute items in a timely manner and thank all participants. This will make them feel appreciated and keep them coming back for future fundraising efforts. If your auction platform has data and analytics capabilities, you should also review your performance data and reflect on what went well and what could be improved in future iterations. Taking time to reflect immediately afterward will help provide valuable insights that will bolster your next event.
If you’re ready to start organizing your next virtual auction, let the following six steps serve as a rough guide for how to approach it:
Choosing the right platform is critical for hosting a successful event. At FrontStream, we aim to help nonprofits like yours raise more money to do more good. With BiddingForGood, our cloud-based auction platform, you can get started with easy-to-use tools and templates to create a unique branded homepage in under an hour, manage your auction items, sell tickets, promote your event and easily incorporate mobile bidding to raise more.
With BiddingForGood, you’ll also have access to an online community of 1.7 million philanthropic shoppers to increase bids and help you gain new supporters. You can even securely process payments with a single click, thank your donors, and run comprehensive reports to see how the event went and make improvements for the future. Schedule a free consultation today to learn more.