Buyer's Premium Minimum Per Auction

K-BID believes that every auction listed on the website should serve a clear purpose and create real value for both affiliates and bidders. Small auctions do not generate enough interest, are difficult to effectively promote, and do not cover the hard costs associated with supporting them. To maintain a high-quality marketplace and avoid cluttering the site with auctions of limited appeal, a minimum buyer’s premium (BP) policy is in place.

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Policy Details

• The minimum billed BP amount per published auction is $100.

• Because K-BID collects 10% of the 15% buyer’s premium, affiliates should aim for at least $1,000 in total bid prices per auction to avoid paying the difference.

• If the total BP collected falls short of $100 (including auctions with $0 sales), the affiliate will be billed the difference on their next BP invoice.

• If a single-lot auction does not meet the reserve or minimum bid, the affiliate will be charged the $100 BP minimum plus the applicable $25 Reserve Not Met (RNM) fee.

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Examples

1. Auction generates $20,000 in bid prices.  

   • Buyer’s premium collected (15%): $3,000

   • K-BID share (10%): $2,000

   • Affiliate share (5%): $1,000

   • Result: No minimum fee applies.

2. Auction generates $1,000 in bid prices. 

   • Buyer’s premium collected (15%): $150

   • K-BID share (10%): $100

   • Affiliate share (5%): $50

   • Result: K-BID’s share meets the $100 minimum. No additional fee applies.

3. Auction generates $500 in bid prices. 

   • Buyer’s premium collected (15%): $75

   • K-BID share (10%): $50

   • Affiliate share (5%): $25

   • Result: Affiliate is billed an additional $50 to bring K-BID’s share to the $100 minimum.

4. Auction generates $0 in sales (no items sold)

   • Buyer’s premium collected: $0

   • K-BID share: $0

   • Affiliate share: $0

   • Result: Affiliate is billed $100 minimum BP on their next invoice.

5. Single-lot auction does not meet reserve

   • Buyer’s premium collected: $0

   • K-BID share: $0

   • Affiliate share: $0

   • Result: Affiliate is billed $100 minimum BP plus $25 RNM fee.

*This policy was updated on 12/20/23 from $50 to $100.