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What's Up With Penny Auctions?

Penny auctions are very popular at the moment and have an almost fanatical global following. What are they and how do they work you ask...

Penny auctions are very popular at the moment and have an almost fanatical global following. What are they and how do they work you ask...

Penny auctions are a type of all-pay auction in which participants pay a non-refundable fee to place a small incremental bid on auction items.

People that want to participate in the penny auctions purchase bids that have an auction value of one penny each. These bids most often cost between $1.00 - $1.50.

As bids are used the price of the item being auctioned increases by one penny and extends the time of the auction by a set number of seconds.

If time expires without an additional bid being placed the last participant to have placed a bid wins the item and also pays the final bid price.

In theory the final bid price will be significantly lower than the actual retail price of the item.

Using this model the auctioneer makes money in two ways: the non-refundable fees initially paid for each bid and the actual payment for the winning bid.

An example of how the auctioneer makes money goes something like this...

An auction item with a retail value of $100.00 sells at a final price of $6.00.
Bids costing $1.00 each were used to raise the price of the item by one penny.
The auctioneer would receive $600.00 for the 600 bids and $6.00 as the final price, a total of $606.00.
This represents a profit of $506.00 for the auction site.

The winning bidder's experience might look something like this...
15 bids used during the auction process at a cost of $15.00 and $6.00 for the final price for a total of $21.00 and a savings of $79.00.
 
In the example above it seems as though everyone involved got a good deal with the auction winner maybe even having some fun along the way.

Some have claimed that penny auction sites are a form of online gambling and should not be allowed.
It should be noted that no penny auction site has ever been sanctioned and or regulated for violating state or federal gambling laws such as the Unlawful Internet Gambling Enforcement Act of 2006.

In my opinion there is one penny auction site that stands above all others when it comes to the quality of the user experience, functionality, legal compliance and company credibility.

This company has 2 distinct models...the auction side which is called Zeekler and the business side which is called Zeek Rewards.

If you would like to experience the penny auction site there is a way to do it for free. If you register at this website you will be issued 500 free bids to use on select auction items. The website states that 25 free bids are available but the number is actually 500.

If you would like to find out more about how you can earn money by exposing people to the Zeekler Penny Auctions send an email including your full name and phone number to mike@mikesilvaonline.com

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Concerned Citizen July 23, 2012 at 01:39 PM
http://www.abcactionnews.com/dpp/money/consumer/dont_waste_your_money/consumer-reports:-penny-auction-warning
DealDash September 02, 2013 at 12:39 AM
Thanks for shares unique, quality and informative information with the world. visit www.dealdash.com/page.php?id=19‎

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