quibids.com reviews - When penny auctions first hit the scene they were wildly successful and popular due to the entertainment factor and allure of winning brand new items such as HDTV’s, gaming devices, smart phones and other popular items for pennies on the dollar. Who wouldn’t want to get a 42” HDTV fresh out of the box for twenty five cents right? The pay per bid auction with count-down counters that simulate the “going, going, gone” of a real auction was a huge hit when they first hit the internet. Venture Capital firms saw the immediate explosive growth and popularity and starting counting the bids per auction item and thought “hey we need to really get in on this”! You can look at earlier auctions of say an Xbox Kinect sold in 2009 or 2010 on any popular penny auction site and count the number of bids received and you’re looking at maybe thousands of bids X $.60 and see how much the site made compared to
their cost of the item sold. Astonishing 1000% returns on the expense of the item! Venture Capital saw dollar signs and were almost hypnotized into throwing money at them to build traffic by advertising on every media imaginable. Huge marketing costs to get the word out = money in the bank to these firms! So what happened?
As users/customers (bidders if you will) started learning how to win and other entrepreneurs opening up copy cat sites because of the explosive growth of this new industry things started to change. The competition grew rapidly and fiercely with more and more Venture Capital showing up to back new entrepreneurs but they didn’t see a change in the behavior of the customers. What was it? What did they miss while their appetite to back new sites with various twists and turns? Well, it was the “Traffic” or the volume of bidders and competition. Customers learned it was much easier to win items for less bids used if you found a penny auction site that was new. Light volume meant improved chances of winning. This hurt the volume of new customers at the big venture backed auction sites because the customers were finding it hard to win so they left for brand new sites. It’s also common sense for the bidder to try and win cheaper items with less demand and that’s
where penny auctions lose money if they don’t take in more bids than the cost of the item.
quibids.com reviews - So, is the original penny auction sustainable for the long term? Well, that’s for readers to decide but the what is needed for the pay per bid industry to work will for someone to find a way where competition is good and encourages more bidders to stay on one site. Is that possible though? Can an auction site attract the volume that the original penny auctions did and maintain it for the long term and will that platform attract Venture Capital after the sting of penny auction losses? If so what does that model look like?
quibids.com reviews - Introducing the full disclosure lowest single bid wins auction. What? Here is what it takes to attract the penny auction crowd and maintain the volume needed for the long term. It’s a no reserve, sealed bid, lowest single bid auction platform that allows users to see how their bids perform on any one auction. Another feature needed to keep them coming back and actually encourage the customer to refer others to come and bid is to give non-winning bids back in the form of voucher bids. This model works more like a membership site than accusations of penny auctions being uniquely disguised forms of online gambling. If you get bids back to try again for let’s say up to a year, then the customer is in essence paying for opportunity to buy an auction item at deep discounts for up to a year. The auction site must limit the number of paid bids to ensure a profit per auction
and fully disclose the number of bids necessary to close each auction. This will ensure that every bidder has an opportunity develop a strategy that works as oppose to penny auction sites where the bidder with the deepest pockets wins. The lowest unique bid auction platform also prevents the auto-bid butlers which cancel out every other bid and restarts clocks on penny auction sites.
In essence this is a nearly perfect pay per bid auction system. The platform encourages volume instead of discouraging as the more bids per auction item the faster it closes with anyone having a sound strategy to bid on a sealed ballot basis can get great discounts.