# Online auction case study

- Link: https://fundraising.co.uk/1998/11/22/online-auction-case-study/
- Published: 1998-11-22T00:00:00+00:00
- Author: Howard Lake

UK Fundraising reported last month on an online celebrity book auction being held
by a consortium of three Canadian educational charities. Celebrities were asked 
to donate books that had inspired them or were important to them. The event raised
$3713. In a welcome move, Anne Leslie of the National Adult Literacy Database Inc
has kindly shared her experiences with the online auction with UK Fundraising.

**Virtual Celebrity Book Auction: a case study**
An online celebrity book auction
last month has raised $3713 for a consortium of three Canadian educational charities.
Celebrities were asked to donate books that had inspired them or were important 
to them. In a welcome move, Anne Leslie of the National Adult Literacy Database 
Inc has kindly shared her experiences with the online auction with UK Fundraising.

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The Virtual Celebrity Book Auction was a collaboration between the National Adult
Literacy Database Inc. (NALD), the Canadian Congress for Learning Opportunities 
for Women (CCLOW) and Literacy Link Niagara. The auction was held in support of 
these organisations’ scholarships and bursaries for adult learners in literacy and
high school programs.

The auction was virtual in more ways than one. The three non-profits are all geographically
disparate. NALD is in Fredericton, New Brunswick, while CCLOW is in Toronto, Ontario
and LLN is in St. Catherines, Ontario. As a result, the whole event was managed 
by phone, fax and e-mail, and without physical meetings.

Background

Anne Leslie explains how the idea of an Internet book auction was developed. “In
1996, when NALD’s Executive Director Charles Ramsey was giving a presentation about
NALD’s facilities to Literacy Link Niagara, he was approached by LLN Executive Director
Gay Douglas with an idea for a fund-raiser – a book auction on the Internet. Since
CCLOW had recently done a celebrity book auction to raise funds for their Marie 
St. John Macdonald scholarship, the three organizations got together and decided
to pool their resources and collaborate on conducting a virtual celebrity book auction.”

Planning the auction

The three non-profits contacted more than 2,000 celebrities from a range of fields
including sports, arts, entertainment, literary and public service. They were asked
to send a copy of their favourite book. This had to be a book that was important
to them because it had helped, influenced or inspired them. It didn’t matter what
type of book it was: it could be fiction, non-fiction, and of any genre, including
a children’s book.

Of the 2,000 celebrities contacted, 86 responded. These were then asked to send 
a photograph of themselves so that it could appear on the Web site next to a picture
of the front cover of their chosen book and alongside any inscription they might
choose to write in the book. “Most celebrities complied by sending both a book and
a publicity still,” said Anne Leslie. “But some celebrity agents sent only autographed
photos, or books only, or items such as sports team programs, collector cards, canvas
tote bag, and magazines. Not expecting this, the partners had to decide to create
categories of donated items and to price them accordingly.”

The partner non-profits were fortunate in that NALD’s Systems Administrator Michael
Vincent had the skills to create the auction Web site, including writing most of
the programme for the NALD Web server on which the auction would run. The non-profits
had searched the Internet for other examples of Internet auctions but initially 
found very few. However, as the launch approached more and more of them appeared,
and proved useful models from which to adapt useful features.

Working out the details

There were a number of issues that needed consideration. How long would the auction
last? How would bidders be registered? How would people pay for their purchases?
Could the last bidder on an item be contacted and informed when another participant
had outbid them? “We decided to have the auction on-line for one month”, says Leslie.“
Information from an Internet auction entrepreneur suggested that 80 per cent of 
the bidding would be done during the last day or hours of the auction.”

Leslie explains how the auction site worked. Bidder confidentiality was a key consideration,
and the silent auction approach was adopted. “The bidding portion of this site worked
like a silent auction. Registered visitors could browse the books and leave a bid
on one or more celebrity donations. The highest registered bid on each celebrity
donation would be automatically posted: no other information except a user name 
and the amount of the bid would be displayed.” It was decided “for security purposes”
that payment transactions would be not be carried out online. Bidders who registered
would be asked only “for the method of payment to be most likely used.” The non-
profits would then contact all successful bidders when the auction had finished 
to make arrangements for payment. Successful bidders would have to pay a shipping
and handling charge.

Promoting the auction

Since it was an online auction NALD focused on promoting the event on the Internet.
Leslie explains: “Internet search engines like Yahoo, Infoseek, and Excite were 
contacted, and given about nineteen key words describing the auction: celebrity,
books, autograph and so on. These were submitted to the search engines so our auction
site would be picked up when people made search enquiries using any of these key
words.”

NALD then researched appropriate newsgroups that dealt with entertainment, sports,
television, literature and music. Newsgroups for fan clubs of participating celebrities
were also researched. Announcements were sent to the fans via the appropriate newsgroups
to let them know that their celebrity had donated to the auction. NALD staff members
joined various literacy and educational e-mail discussion lists and sent messages
about the auction to subscribers on a regular basis.

Given the focus on books, promotional work was also undertaken with the publshing
industry, with messages sent to Canadian book publishers and a national authors’
association. “Hundreds of media releases were e-mailed to community and daily newspapers
and to broadcasting wire services”, reports Leslie. “Each partner distributed the
media release in their own geographic region to newspapers, radio and television
stations and other networking vehicles such as electronic bulletin boards of professional
associations, Charity Village and so on. One ad was purchased in a national weekly
news magazine. Bookmarks were made up by CCLOW and distributed at the opening night
of Word on the Street in Toronto.”

The publicity paid off in unexpected ways. “As a result of getting the media release,
one publisher donated 23 books, unautographed and they were sold as bargain books,
beginning with reserve bids of $5. Autographed books donated by celebrities had 
a reserve bid of $20 on them.”

The auction goes live

A visit to the site lead you through a library of books, magazines, photographs,
and art work, donated by celebrity politicians, authors, TV, film and sports stars,
artists, and academics. Many of the works were personalised, telling you, with the
click of a button, how the book inspired the donor in their childhood, through their
own education or current work.

The auction offered 113 items of which 105 items drew bids. A total of 174 visitors
registered to take part in the auction. When it closed on 30 October 1998 it had
raised $3713. “At this time,” acknowledges Leslie, “we are unable to tell you if
any of the bidders reneged on their bids. E-mails are being sent to all the bidders
containing invoices for the items they were successful in purchasing. Many Internet
auctions require that you give your credit card number in order to become a registered
bidder. We decided against this. The bidders who registered with our auction and
indicated that they would be paying with credit card, will be contacted by phone
to complete the transaction.”

Was it successful?

NALD’s Executive Director Charles Ramsey is frank about the amount of work involved
in the auction. “From NALD’s perspective the auction was more work in both technical
development and in contacting donors than the dollar value of the response.” On 
the other hand, this was the first time they had tried this type of event, so they
are better prepared to do this another time. “The experience was fun, interesting
and a good learning experience. Yes we would do it again, and we would generate 
a better response the next time. It was extremely gratifying to see the very positive
response from both donors and bidders and fun to work with both the Canadian Congress
for Learning Opportunities for Women and Literacy Link Niagara, the two organizations
with which we partnered on this.”

Leslie has some tips to pass on. What would she do differently next time?

Contact more Canadian celebrities.

Put a tag line about the auction on all staff outgoing e-mails.

Print up special letterhead promoting the auction – so that every outgoing letter
promoted it.

Try to work with publishers, agents etc. to arrange things like chats with celebrities
on-line.

Create cross-promotion opportunities with book store chains, libraries, and publishers.

Leslie points out that there is some useful further information on Internet-based
fundraising auctions in the following two articles:

How Can We Use the Internet for Fundraising? by Eric Mercer

Sold, to the Man at the Mouse by Marilyn Dickey, Chronicle of Philanthropy, 22 October
1998.
