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Pay Per Bid Auctions - How Do Penny Auctions Work Anyway
Should you dig around online wondering "how do penny auctions work" and "what are penny auctions?" you'll see the most popular threads from individuals who scream at the top of their lungs that "penny auctions area all scams".
It's important to specify that there are some penny sites that do scam their users by creating never-ending auctions. This is most common on sites that sell their own products - essentially the penny sites that do not offer a true industry for people to sell many.
To call every penny auction a scam is much like saying all mechanics or automotive repair shops are scammers. Yes, some of them are unethical within their business practices but i am not saying all mechanics are bad news.
With that in mind, let's tackle the primary question...
How Do Penny Auctions Work
Most work off a similar auction model in which a method is listed for a penny. These items can be anything, but they're typically popular brand name items and electronics, gift certificates, cash prizes, etc. To be able to place a bid around the item you need to purchase a pack of bids; each bid costs between five cents to greater than a dollar with respect to the site.
While you invest in the item, the price increases by 1 penny and also the timer around the auction resets. These countdown timers on pay per bid penny auctions are between 10 seconds to A minute. The final person to bid once the timer reaches zero wins the auction. That each pays the listed price of the product when the auction ends.
In most penny auctions, users get items for any fairly steep discount though there are several pay per bid sites that do not focus on countdown auctions. The other common bid auction types are Buy it Now auctions (known as a "reveal the price" auction), Lowest Unique Bid and 100% off (or zero bid) auctions.
Each of these auctions works differently, as well as a different strategy. There do have something in common however and that's always a bit of a nail-biting anxiety to getting the item ultimately.
No matter what kind of bid auction you join, you'll be facing steep competition that needs a fair amount of planning, right down to deciding how many bid packs you need to purchase. Since some auctions can take a fair amount of time to accomplish and may require a substantial investment of bids and time, the very last thing for you to do is run out of bids.
Are Penny Auctions Legit?
As much as other traditional sites like eBay, yes - but not these. The most crucial part of setting up a strategy for bidding is making sure that you research and evaluate the entire site in terms of policy, rules and the way the machine works.
Use the information open to determine whether the site you select is reputable or if lots of users have experienced problems collecting their items - or losing constantly. Protect your personal interests and you will be able to use the data gained here how penny auctions work in order to find success in your own attempts.
