Start an Online Auction House for Local Consignors

Sellers pay a commission when their items sell. Buyers usually pay a buyer's premium on top of the winning bid.

A percentage commission from the seller on each lot sold, often plus a buyer's premium. Some auctioneers also charge small fees for photography or for lots that don't sell.

• Photographing and describing items
• Knowing what things are worth, or willingness to research
• Customer service with sellers and bidders
• Organizing storage and pickups

• State auctioneer or auction company licensing and bonding rules, which differ widely, so check your state's licensing board
• General liability insurance and coverage for items in your care while stored or in transit
• Written consignment agreements covering fees, reserves, unsold items and payout timing
• Sales tax registration and collection rules for auction sales in your state
• Home storage limits, such as HOA or lease rules, and local home occupation permits
• Misdescribed or counterfeit items causing disputes, so be clear in listings and check provenance

Startup costs are typically around $1,500 to $7,500, depending on your setup, such as photography equipment, storage space and insurance. Your own figure will vary with how many items you take in and how you handle pickups and shipping.

Monthly revenue is typically around $1,000 to $5,000, depending on how many items you consign, what they sell for and the commission you charge. Revenue is not profit, so remember to subtract your costs.

Check your state's auctioneer or auction company licensing and bonding rules, which differ widely, plus sales tax registration and collection. Also check insurance for items in your care, and HOA, lease or home occupation rules if you store items at home.