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Pay Per Bid Auctions - How can 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 auction sites that do scam their users by creating never-ending auctions. This is most common on sites that sell their very own products - basically the penny auction sites that don't offer a true marketplace for people to sell many.

To call every penny auction site a gimmick is much like saying all mechanics or automotive repair shops are scammers. Yes, some of them are unethical in their business practices but i am not saying all mechanics are bad news.


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With that said, let's tackle the main question...

How can Penny Auctions Work

Most work off an identical auction model where a method is listed for any penny. These items can be anything, but they're typically popular name brand items and electronics, gift cards, cash prizes, etc. To be able to place a bid on the item you need to purchase a pack of bids; each bid costs anywhere from five cents to more than a dollar depending on the site.

While you bid on the item, the cost increases by 1 penny and the timer around the auction resets. These countdown timers on pay per bid penny auctions are anywhere from 10 seconds to 60 seconds. The final person to bid once the timer reaches zero wins the auction. That individual pays the listed cost of the product once the auction ends.

In most penny auctions, users get items for a fairly steep discount though there are several pay per bid sites that do not concentrate on countdown auctions. The other common bid auction types are Purchase it Now auctions (referred to as a "reveal the price" auction), Lowest Unique Bid and 100% off (or zero bid) auctions.

All these auctions works differently, and requires another strategy. There will have one thing in keeping however and that's always a bit of a nail-biting anxiety for you to get the product in the end.

No matter what kind of bid auction you join, you will be facing steep competition that requires a reasonable quantity of planning, as a result of deciding how many bid packs you need to purchase. Since some auctions can take a reasonable amount of time to complete and may require a substantial investment of bids and time, the very last thing you want to do is run out of bids.


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Are Penny Auctions Legit?

Around other traditional sites like eBay, yes - but not these. The most crucial a part of generating a strategy for bidding is making sure that you research and review the entire site in terms of policy, rules and exactly how the system works.

Make use of the information open to determine if the site you select is honest or if a lot of users have had problems collecting their goods - or losing constantly. Protect your own interests and you will be able to utilize the data gained here how penny auctions work in order to locate success in your attempts.

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