Penny auctions
Penny auctions have exploded over the past two years or so. There are dozens of legitimate penny auction sites that are out on the web today.
What are penny auctions? Penny auctions allow you to have a chance to buy expensive products, like jewelry, TV’s, video game systems, camera’s, and much more for just a few dollars. You place bids on the auctions and in most cases, the lowest unique bid wins. TV’s that normally sell for 1000 dollars can be bought between 5-10 bucks, 500 dollars in cash has been won for 3 dollars…
How can these sites stay in business? Each bid costs the user one dollar, so if 800 bids are placed on a 500 dollar prize, the site nets at least 300 dollars. It is a clever idea and many of these sites are really starting to rake in the money.
Are penny auctions legal? Absolutely.
Are penny auctions scams? Well, it depends. You really can buy expensive items for just a few dollars, but more often than not you will waste your money buying bids that will end up being worthless.
The verdict: Penny auctions are “too good to be true”, but they are not necessarily scams. It is very easy to get addicted to auctions in which you can buy things at a 95-99% discount, so make sure you keep your bid buying in check!