Sunday, April 4, 2010

Penny auction sites: legit or scam?

I stumbled across some websites in my search for ways to make more money and found penny auction sites. Looks like another way to trick people into buying stuff, but then again showing proof is somewhat hard unless you have proof that you won the item. It works by buying bid packs which can be as low as $0.50 per bid, then you go bid on items that you want. Each bid raises the item by $0.01, but if you're lucky you win the item without a problem. Therein lies the problem, you're already buying bid packs and you're also competing against others who're after the same item.

The losers have to fork over their money for using bid packs and the winner pays the auction price plus shipping and handling. Seems to me that sites profit from losing bids easily and get more money than the value the item is worth. Some are incredibly lucky, but most of the time people lose their money due to bidding on an item too much.

Penny auction sites are incredibly popular in Europe and the U.S. seems to catch the fever. Personally I think it is just as addictive as gambling and you have to be incredibly fortunate to win something while the losers have to pay their bids (money) big time. It's hard enough to make money online when penny auction sites are appearing to entice people to buy what they want at a cost.

1 comment:

Josh said...

New bidders who are worried about losing money on penny auctions should only use penny auction sites that have a "Bid to Buy" option. That way, even if they don't win the auction, they can still invest the value of their bids towards purchasing the item at retail price.

Learn more about penny auctions over at the Penny Auction List -