As a concept, there is no reason not to trust penny auctions. It's just important that, before you have a go, you understand that these sites operate in a totally different way to eBay and other online auction sites based on this person-to-person format. Before you part with any money, you should make sure you're aware of how penny auctions work. As long as you are armed with the relevant information, you can then go ahead and sample the excitement of a penny auction without feeling cheated if you don't win.
Penny auctions, also known as reverse auctions or lowest unique bid auctions, give you the chance to bid for an item being sold by the company that runs the site, rather than from another individual. Instead of the highest bid winning, the person that places the lowest bid that hasn't been replicated by anyone else is the winner. Because you are dealing directly with a company, you should check out their reputation using your chosen search engine before you register. Some poor quality sites have tarnished the image of the penny auction format, but there are plenty of trustworthy operators out there.
To make money, penny auction sites charge users to purchase credits, which you need to participate in an auction. Credits are priced differently on different sites, but you can generally get them cheaper by buying in bulk.
If you don't win the auction, the cost of participating is money you won't get back. If you do win, however, the price paid for credits plus the amount you successfully bid may be significantly lower than the retail price of the item in question. Essentially, penny auctions are comparable to gambling in the sense that there is no guarantee your outlay will give you anything in return, but you are paying for the chance to get an expensive item at a knock-down price.
Whilst the odds are certainly against you, this adds to the excitement and competitive atmosphere for many people. Just don't expect to win every time.
Penny auctions, also known as reverse auctions or lowest unique bid auctions, give you the chance to bid for an item being sold by the company that runs the site, rather than from another individual. Instead of the highest bid winning, the person that places the lowest bid that hasn't been replicated by anyone else is the winner. Because you are dealing directly with a company, you should check out their reputation using your chosen search engine before you register. Some poor quality sites have tarnished the image of the penny auction format, but there are plenty of trustworthy operators out there.
To make money, penny auction sites charge users to purchase credits, which you need to participate in an auction. Credits are priced differently on different sites, but you can generally get them cheaper by buying in bulk.
If you don't win the auction, the cost of participating is money you won't get back. If you do win, however, the price paid for credits plus the amount you successfully bid may be significantly lower than the retail price of the item in question. Essentially, penny auctions are comparable to gambling in the sense that there is no guarantee your outlay will give you anything in return, but you are paying for the chance to get an expensive item at a knock-down price.
Whilst the odds are certainly against you, this adds to the excitement and competitive atmosphere for many people. Just don't expect to win every time.
No comments:
Post a Comment