I get asked about choosing the right auction platform for your business at least twice a week. Whether it's from someone liquidating their first estate sale or a seasoned auctioneer running dozens of sales monthly, it's always some version of: "Daniel, how do I know if I'm on the right platform?"
I spend a lot of time talking to people about this stuff - on Zoom webinars, over coffee, in random phone calls that turn into hour-long strategy sessions. And I always tell them the same thing: check out all your options. HiBid, other SaaS providers, custom builds - whatever might work for your specific situation. The worst thing you can do is choose any auction platform blindly, including ours. Because here's the thing: your auction software isn't just another business expense. It's literally the foundation that determines how you grow, whether you actually own your customer relationships, and how much money stays in your pocket at the end of the day.
So let's talk about the three main routes you can take, what each one really costs you (beyond the monthly fee), and how to figure out which one makes sense for where your business is heading.
Most auction businesses end up choosing between these three approaches:
The Marketplace Route This is like setting up shop in someone else's mall. Platforms like HiBid give you instant foot traffic, but here's what they don't advertise: your brand becomes invisible, you're building their customer database instead of yours, and those "small" listing fees add up fast. Plus, you're basically renting space in perpetuity.
I tell people this is fine when you're starting out and need quick validation. But if you're still there after year two, you're probably leaving money on the table.
The SaaS Route Here's where you license software but get your own branded site. Your bidders come to YOU, not some generic marketplace. You control the experience, own the data, and usually pay a predictable monthly fee. It's the sweet spot for most growing auction businesses.
Just make sure you read the contract carefully - some SaaS providers talk a good game about "your data" but make it nearly impossible to actually export it. Also watch out for long-term contracts that lock you down.
The Custom Build Route Some operations need something completely tailored, so they build from scratch. When it works, it's powerful as hell. When it doesn't... well, I've seen six-figure disasters where developers promised everything and delivered a barely functional site that can't handle basic auction workflows.
I've watched this pattern play out dozens of times. Let's call him Jake - he's a composite of several clients I've worked with over the years.
Jake starts on an auction marketplace because he needs to test whether this whole online auction thing will work for his business. Fair enough.
Within 18 months, he's frustrated. He's doing all the marketing legwork but building someone else's brand. His profit margins are getting squeezed by fees. He can't even get basic analytics about his own customers.
So Jake moves to a white-labeled SaaS platform. Suddenly he's got his own site, his own brand, his own customer list. His margins improve immediately.
A few years later, Jake's business has grown enough that he needs deep integrations with his inventory system, custom reporting for his enterprise clients, and workflows that no off-the-shelf solution handles well. Now a custom build makes sense.
The key insight? Jake didn't jump straight to custom when he was doing $50K in annual volume. And he didn't stay on a marketplace when he hit $500K. He chose the right tool for his current reality, not his dreams.
Too many auctioneers get stuck because they focused on features instead of fundamentals. Before you sign anything, get clear answers to these:
Can I export all my data, completely, anytime I want? If they hedge on this, run. Your customer relationships and sales history are YOUR business assets.
Who actually owns the bidder relationships? Some platforms claim you do, then make it impossible to communicate with your own customers outside their system.
What's my real exit strategy? Not just "can I cancel," but can I practically move my business elsewhere without starting from zero?
How do the economics really work? Per-auction fees might look cheap until you're doing volume. Flat monthly fees might seem expensive until you calculate what percentage-based pricing would cost at scale.
Do these people actually understand auctions? I can't tell you how many "auction solutions" are built by software teams who've never run a sale in their lives. The devil's in the details they don't even know exist.
Getting addicted to marketplace traffic. Here's a reality check: most successful auctioneers I know do their own marketing regardless of platform. It's called "the auction method of marketing" for a reason! So why are you building someone else's brand with your marketing dollars?
Falling for the custom development fantasy. Unless your development team has deep auction experience, you'll spend months (and thousands) solving problems that established auction platforms figured out years ago.
Ignoring auction platform lock-in until it's too late. If leaving would essentially destroy your business, you're not running an independent operation - you're an unpaid employee of your software vendor.
I get it. The cheapest auction platform option feels smart when you're watching cash flow. The quickest setup feels smart when you've got sales pending.
But this decision isn't just about running your next auction. It's about building a business that can grow, pivot, and survive changes in the market.
If you're brand new and need to test the waters, marketplaces serve a purpose. But once you've proven the model works, every month you stay is a month you're not building your own asset.
The right SaaS platform or thoughtfully executed custom auction platform solution gives you what matters most: control over your destiny.
Want a second opinion on your specific situation? I'm happy to walk through your setup - no sales pitch, no strings attached. Just book a meeting and we can figure out what makes sense for where your business is headed.