How to Create a Reverse Auction

Reverse auctions are often used in freelance writing projects.

A reverse auction turns the traditional style of auction on it's head. Normally, people bid on an item or service against one another, with the the winner getting the item and paying the highest price for it. A reverse auction pits bidders against one another for the ability to perform what is normally a short-term job or project, and the lowest bidder wins. There are many websites that allow project-offerers and project-seekers to meet and bid, but it is easy to set up a reverse auction for yourself if you choose.

Instructions

1. Set the complete parameters for the project. Include the specific results expected when the job is finished, the anticipated or desired number of hours to complete the job, the type of experience or background required to handle the job and the necessary time frame.

2. Communicate the information in a persuasive piece detailing why someone should actively bid on the project. Make it clear that this will go to the lowest bidder who meets all the other qualifications. Websites that offer free "help wanted" postings are good places to look for bidders if the site has a specific area set up for job seekers that match your general project needs.

3. Compare the bids and resumes from the responses. If one matches your budget and expectations, you can communicate with the bidder. If there are several people who are qualified, but you would like a lower bid, then you can communicate back with them detailing what the low bid is and asking who would like to resubmit another, lower bid for the project.

4. Choose the low bidder from the new responses. If you are still not satisfied you can ask for another round of bids, or you can start over with a new group of potential bidders.

Tips & Warnings

• Have a detailed project contract drawn up that outlines the responsibilities of all parties.

• "You get what you pay for" is often more than a trite phrase when hiring the lowest project bidder.

References

• Connecticut Conference of Municipalities: CCM Reverse Auction FAQ
• Reverse Auctions: FAQ
• Market Dojo: How Online Reverse Auctions Can Help You