Penny auctions have exploded in the last year and unfortunately many crooks have seized on this popularity and launched fake penny auction sites or sites that employ bots (automatic programs that increase prices).
As an internet marketer, I have seen many shady websites offering “free trials” or “how to make money online”, but I feel the need to explain that not all penny auctions are scams.
There are several legitimate companies that do not use bots and are NOT scams, they have a strong community and offer exceptional products and customer service.
However, even these legitimate sites are difficult to detect, one of the reasons is that due to their popularity they have many new users who may not fully understand what the rules of these penny auctions are and how they work. What happens in many cases is that a user will see an ad online that says “Get a MacBook for $ 11” and assumes they can sign up and buy a MacBook for $ 11. You have to play, your entertainment purchases, and you can get offers, if it is your patient. This is one of the reasons why penny auctions always, no matter how legitimate, always get a lot of bad press.
It is important to know what Penny Auctions really are.
Basically, when you sign up, you are asked to create an account and buy deals, which makes most people think that there is something fishy. But, penny auctions unlike eBay work like this. You buy a set of bids (usually for $ 0.60 per bid) and place those bids in an auction.
These websites also differ from eBay in that the auctions do not have a fixed ending, but rather follow the model of the traditional live auction. When you bid, a small amount of time is added to the clock, allowing other bidders to continue.
It is a game of ingenuity and patience, but it is not rocket science.
One of the most successful strategies is to wait until the last second or two and then bid. Also, as convenient as automated bidders are, you should avoid them as they bid instantly and don’t wait until the last few seconds.
Another solid piece of advice is to research why the product has been sold recently, unfortunately it’s usually iPads or MacBooks that get everyone and your mom to bid. If the last iPad sold for $ 50, don’t start bidding for $ 10, wait until it reaches the top tier until you bid.
So how do you know if a penny auction is legitimate?
I highly recommend that you do a little research on which sites are real before signing up for your hard-earned money. Read the reviews, ask your friends, and take a good look at the site. One of the biggest tricks is the big winners. The infamous $ 1,100 Honda civic is a great example. now I want to say that I can say that I have confirmed that at least two cars have been won. One on the now defunct (and suspicious) SwipeBids and the other on the largest penny auction website, Quibids. If you see a non-Quibids site that lists a car or multiple cars as winners, take a step back and do some research before signing up.
If you’re looking for a bargain, don’t be afraid of penny auctions, just find out!