Penny Auction Reviews
Penny auction scams can be hard to detect because consumers tend to think that all of them must be hugely profitable. After all, the total revenue from the bids place almost always exceeds the total price of the item for which it sells. However, this is not always the case primarily because new auction sites try to attract a lot of consumers by giving away too many freebies. This makes for an unsustainable business model that is bound to collapse one day or the other.
After the success of such penny auctions like Quibids and Swoopoo, it is not surprising that hundreds of new sites have come up all over the place. These are relatively new with an unproven track record. No one knows for sure whether they are scam or not. Added to this, it is always profitable to bid at new penny auction sites because there are fewer bidders and less competition, so chances of winning big products is much higher. This puts the consumers in a dilemma of whether to avoid or pursue these new auction sites. Here are some guidelines that you can follow to decide whether to invest in a new site or not.
Information is the Key
Today, penny auction scripts are available for a couple of hundred dollars and there are many people out there looking for programmers who can make Quibids code or something very close. You can find a lot of unethical individuals trying to make some quick cash in this niche. The truth is, to really succeed, you need to put in a lot of effort and commitment, just like for any other business.
The first step therefore is to ensure that the owner is open. Do you even know where the business is located and who the CEO is? You can find this information for established penny auctions like Quibids (the CEO is Matt Beckham and the business is located in Oklahoma)
Try contacting Support
Good and serious businesses always give due importance to customer support that overnight scam penny auctions don’t care about. Therefore write to support and see if you get a prompt reply. If there is no reply even after a couple of days, it is not advisable to invest in the site.
Look for Suspicious Rewards
There are many new auction sites that give away great gifts and rewards to attract customers. For example, a common strategy is to give away daily or weekly prizes for the highest bidder, which encourages people to bid more. However, in a lot of cases with new auction sites, it can happen that the whole business model becomes unsustainable. This is because it is usually hard to predict the exact profit from a given product because it is next to impossible to know for how much a product will be sold. In such cases, the rewards can actually lead to the downfall of the business instead of helping promote it.
In the end, it is important to remember that for consumers, it is hard to know which auctions are scams and which are not. Therefore it is best to read penny auction reviews on the internet before you invest your hard earned money on these auctions.
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