The Risks And Rewards Of Penny Auctions
If you are interested in getting your way into the world of penny auctions
, there are some things you should know before you begin your auctioning! There are both risks and rewards which come with participating in these tricky bets, and they should be studied to learn how to succeed.
Penny auctions are very easy to get hooked into-they are exciting, full of victories, time limits, and the rush which comes with gambling. They are also a great place to get lost in bargains that you can't seem to find anywhere else.
However, it is vitally important that you read the fine print on all of the sites which you participate in. There are rules and procedures about how you can use your bets, how to spend your money, and what the guarantees and refunds are.
Make sure that you do not lose your money, as this is also a common condition which comes with participating in these bets. Seeing as placing any bet requires a certain amount of money, it is easy to become overly involved in a product only to lose it, and pay lots of money to do so.
Penny auctions began in Germany, and are a marketing tactic. They are fairly easy to set up, and easy for their operators to game.
They may be more akin to games of chance at the carnival, like lobbing ping pong balls at goldfish, as opposed to places to hunt for a bargain-though some sites claim you can save an average eighty percent over retail prices.
The differences between a penny auction and regular auction are that in one you buy the bids, either as part of a registration fee or in packs of denominations going up to hundreds of dollars. When someone bids, the price of the item goes up by a uniform increment as in a regular auction, but each bid adds a chunk of time to the clock, giving everybody else a chance to bid again and again.
For this reason, this can be very frustrating as the time exponentially goes on and on until the bidding stops. Winning is a very tricky business of skill!
It is very easy to get caught up in the fine print of a website, and it is particularly tricky to get any kind of refund if you ask for it. Most companies will not give out any kind of contact information, and reaching someone regarding the site is extremely difficult, as they make it this way on purpose.
Remember this: never bet any money you aren't willing to just flush down the toilet, because in some cases that is basically what you are doing! There is no way to guarantee a victory, and even those who have been working these websites for years and years lose bets all the time.
However, if you are careful to observe the tactics of those who have successfully won their items, you can learn the strategies which lead to victory. If there weren't ways to win, and win for a steal, these auctions wouldn't be so popular!
And indeed, they are growing in popularity steadily over the past few years. If you are interested in these bargains, it is a good idea to bid on less popular items to begin with.
Bidding on things like a flat screen TV for twenty dollars is most likely going to lead to a substantial loss for you. However, bidding on a less popular item for just slightly below its common retail price could lead you to a victory, as it is going to be much less competitive and crowded.
Also, do not spread your bets around too thin. If you are going to win, you need to pick one item and stick with it.
Putting numerous bets on several items is a quick way to ensure that you will lose a handful of money for nothing. Commit to one thing, and your chance of victory will increase dramatically.
There is no way to ensure that you are going to win something for a surety on one of these websites-however, if you are willing to lose some money and spend a substantial amount of time doing it, it can be quite fun and exciting.
by: Ronald Pedactor
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