What Is A Penny Auction and How Does It Work?

I wanted to make a detailed article about a Penny Auction and really describe how it works.

After all the biggest question I get asked is: “Hey James How Does That Penny Auction Work?”

Penny Auctions basically work by the company listing an item, such as an Ipad at 0.00$, each bidder then places a ‘bid’ for the item increasing the price by 1 cent. Depending on the amount of bidders participating in the auction, the price continually increases until the last bidder wins. The amazing part is that an Ipad retails for approximately $499 but an Ipad listed in a penny auction may sell for only $43.26 or until the last bidder wins the auction.

This $43.26 represents a total of 4,326 bids placed towards the bidding of the item. Each Bids That Give bid costs.65 cents. If we say 4,326 x.65 we have a total of $2,811.90 that went towards the winning of the penny auction item.

We can easily see how this is a win-win-win for the company and also the customer (bidder) who wins the item for anywhere from 80-95% off of retail prices. The company repeats this process for countless items each day and this is how a company really has a profitable auction on their hands. The great thing is that it is amazingly fun, exciting, and what a great bargain for the winner of the auction!

Bids That Give is different from most any other company out there because of one very crucial element: They Give Back To Children All Over The World. Part of the company’s profits go towards several children’s charities around the world to assist other countries in providing meals, shelters, and orphanages so these can children can have what we take for granted each and everyday.

Another big difference is that Bids That Give bids only cost.65 cents while most other penny auction sites cost a $1. You can really save by purchasing bids through Bids That Give vs. a lot of the competitors, and knowing that your purchase is going to a great cause is just icing on the cake in my opinion.

How Does Someone Win A Penny Auction? What’s The Secret?

I get asked a lot on strategies at winning the auctions, but the real secret is to watch it. The company offers each bidder the ability to place a ‘single bid’ or use the ‘bid buddy’, which can be loaded with a set amount of bids to bid on an item when the timer is at 14 seconds and lower. The ‘bid buddy’ is beneficial for those that don’t necessarily have the time to watch the entire time for an auction item, but I will say that the advantage definitely goes to the bidder who is patient and uses a combination of both ‘single bids’ and the ‘bid buddy’.

The real key and secret is to just simply have the patience to watch the auction item and jump in and strike when you have the advantage. This makes the auctions a lot of fun and you will definitely start to develop your own secrets and strategies the more you bid.

Are Penny Auctions Real & How to Choose a Legit One

Have you ever seen some ads on Google saying that you can get 95% off on electronics, laptops and HDTV’s? After you click on them, you will find that it is a penny auction site. 95% off?! Is it too good to be true? You may be wondering if this is another type of scam.

I have been researching and bidding on some penny auction sites. Penny auctions are not a scam. However, there are illegitimate penny auction websites. You have to carefully choose one before you start bidding.

I have been researching which penny auctions give the best bargains. I’ve learned that finding the right site can mean the difference between saving $10, saving $100 at best, or at worst, getting scammed out of all your hard-earned dough. During my research, sometimes a site would appear legit, but after careful investigation I would discover the site wasn’t very efficient for consumers or, at worst, they conducted illegal business practices.

I like to use websites that offer the Buy-it-Now option. This option allows you to buy the product for retail price, even if you do not win the auction. Whatever you already spent on the auction is subtracted from the retail price and you simply cover whatever is left.

Also, auctions go faster and are more exciting when the countdown timer does not reset too high or add too much time to the clock for each new bid. Some sites I saw added 2 minutes for every unique bid, which could make an auction last hundreds of hours! A fantastic website I saw only adds 15 seconds for each unique bid. Another positive: This same website has a policy that once the clock goes below 10 seconds, no matter how many people bid, the timer will only reset at 15 seconds. This makes for extremely fast and productive auctions.

On the darker side of things, a common illegal business practice I would find is the use of robots, called, “bots.” Bots are used to secretly outbid bidders, so the bidders still have to pay for bids, but they never win, meaning it is impossible for them to receive the products they have paid for.

Another common but unfortunate business practice is the allowing of company employees and family members to bid against consumers. Not only is this immoral and illegal, but company insiders are more likely just to outbid you and raise the price of that item, creating an extremely unfair advantage for the honest bidder.

The above-mentioned illegal practices are all designed to steal money from honest bidders. So bidders spend a lot of honest money on bids but the company never sends bidders the products they’ve won.

One tip I have for new bidders out there is to find the newest legit websites, because their auctions will be the easiest to win since there will be less competition, since less people know that the site exists. Also, check out their “Terms of Services” and their “Internet Privacy Policy” to make sure they’re legit. Remember to find websites that sell bids for a low price and have countdown timers that never go too high.

Are Penny Auctions Or Online Bidding Sites Worth Your Time?

Should you participate in online bidding sites in order to find great deals?

Online bidding sites are becoming popular. I believe the reason for this is that more and more people are hearing about penny auction advantages. In fact, the largest online site collects around $25 million dollars a month in revenue.

Folks from all over the globe visit penny auctions and many participate hoping to land a great deal on products or services.

People are receptive to finding deals at online bidding sites because they can find bargains for 99% off retail prices.

Bid websites are able to offer these great discounts because the products being offered begin the bidding process with a price of only one cent.

One cent is confusing to many because one cent actually is representative of spending anywhere from $.50 to $1.00 per bid. An example of this would be me bidding on a television that the final bid would show the winner won the television for only $5.00 dollars. The real number should show that the television was awarded to the winner for $50.00 based on the television bids costing one dollar for each penny spent.

Each penny bid represents a dollar spent. For some sites you are fortunate to only have to spend $.50 per bid. This represents a great bargain.

Spending $.50 on bids {giving this example} will allow the winning bidder to get this television for only $25.00, plus taxes and shipping cost.

The bidding process with penny auction sites is similar to eBay, but with bid websites you must use bids. Bids are much like tokens. However bids are intangible products.

There has been criticism of penny auctions. The chief complaint is that there are several bidders for the one item being bid on,yet there can only be one winner per item sold. The problem is magnified because several people are spending anywhere from fifty cents to one dollar per bid hoping for the low price.

The remedy to this problem is easily understood with this explanation.

You can still get a great bargain by shopping the penny auction sites even after the bidding has ended. The prices are usually only good for a limited period of time; therefore you must hurry to purchase the item you wanted.

Usually the customer engaging in penny auction websites will more than likely bid on the products that they truly desired. This means that the online bidding site was worth using because you can find the product you want at a good price. And should you win the bid, you likely have gotten a great price. In additional to these benefits, I have found that the online bidding process is very exciting.

Recently I placed a bid on a 65 inch television and my heart was racing fast. The bidding process makes the adrenalin flow. It’s fun to do.