Penny Auction

30 Oct

Penny auction is an auction in which bidders have to purchase bids, before you can bid. The bids are not free and bidders pay per bid for an item and each time the price increase by a penny with each bid. The winning bidder is the one whoever is the last to bid when the timer counts down to zero and had bid the highest. These auctions are often called entertainment auctions as well.

There are many penny auction websites. Most of them auction out used stuff- with few exceptional ones’ that auctions only new items. The range of items that you can bid on penny auctions are cars, gift cards, vacation packages, concert tickets or popular DVDs and iPods virtually all kinds of latest gadgetry. There are hoards and hoards of virtual currency involved in these sites. This currency consists of bundles called bids or bid packages. They are kind of chips you buy them with cash to play poker. The items listed for auctions are often provided by the operators.

These sites are often referred to as entertainment auctions – a fragile tie to online gaming. It is very tempting – if your unusually low bid wins, you get a high value item really cheap. The popularity of these penny auctions prove that the business model has the capability of producing sizeable profits. The operators make good money based on the sale of bid packages and also from the bidding war for an item. Whether a site calls themselves entertainment auctions or penny auctions, they are all the same in the way they work. They have no minimum bid, but have an increment of a penny but charge the bidders for each and every bid they make on an item. But you have the chance to walk away with high priced items for few dollars or sometimes even fractions of a dollar.

The Penny auctions are sort of gambling nature in their set-up, but they are not illegal. As these sites are not based on the game of chance but a game of bidding wars on actual items, these auctions are legal. But it is good to check the legitimacy. It can be done by looking at its traffic. If a site has plenty of items for bid and as much bidding activity going on; that is the number of visitors match the number of bids, it proves the Penny auctions trustworthiness and helps in minimizing the risk of being the target of a scam.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: