Penny Auctions
As a bidder, you often wonder if real people actually win the auctions
, or if the website just makes you keep bidding, but in the end the company wins and no actual products are won by real people. This type of scam is not unheard of, but with so many penny auction sites being so successful, many people must have actually won their auctions.
Don't be fooled by the whole "penny" aspect of the bidding, however, because when you bid you aren't actually spending a penny. Instead, you are required to buy bids. Each bid costs a certain amount of money, and you are required to buy the bids before you can participate in an auction.
Most regular auction sites, like Ebay, allow you to bid for free, and you only pay the dollar amount that is won with the auction. So if a T.V. auction on Ebay stops at the highest bid being $45, then that bidder pays $45 for the T.V.
Penny auction sites, on the other hand, require users to buy a package of bids instead of just purchasing singular bids. So users purchase a package of anywhere from 20 to 1,000 bids, and if you don't use a bid that you purchased, you cannot return it. So be careful with the amount of bids you buy, buying too many can leave you with extra bids that mean wasted money.
After you purchase the amount of bids you think you will need, they are put into a "bid bank" and you use those during the auction. Once enter the auction, you can bid on the item you want, and each time you press the "Bid" button, you use one of the bids in your "bid bank."
This is where you have to be careful; you should only bid after you see a lot of other people bid first, this will make sure you don't use a bid unnecessarily and waste them. If you run out of bids, you have to purchase more, and this will take you away from the action you are watching, and could cause you to lose the item you want.
Unlike Ebay, if someone makes a bid at the last second, more time is added to the timer. This can cause an auction to last a great deal of time longer than one anticipates. That is why penny auctions have to be constantly watched because the ending time is unknown to all. '
If you do not win the auction, you do not get your money back from the bids you used. Those were purchased to just push the "Bid button. And if you do not push the "bid" button as many times as your "bid bank" allowed, you cannot turn them in for your money back either. Once the bids are purchased they are yours, whether you use them or not.
If you do win an auction, you pay the amount of money due on the bid, the purchased bids were not your payment. So if you paid $20 to buy the bids and then you won the auction with a bid of $15, then you will pay a total of $35.
Penny auctions can be confusing, frustrating and time consuming, but if you win an iPod for only a few dollars, it may be worth it to you. Just know that you will probably lose most of the auctions you enter, and that means that there will be nothing to show for the the money you spent on bids.
If you want to play the bidding game with penny auctions, be careful with the amount of time s you push the "bid" button, because each click of the mouse will cost you more money.
by: Ronald Pedactor
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