"I want bidders to understand what they are getting into before they start placing bids and spending money. It is not discount shopping. Our Penny Auctions 101 guide helps bridge the gap for new bidders about what is going on and gives ideas to help win."
Atlanta, GA (PRWEB) February 10, 2012
PennyAuctionSites.com releases new guide aimed at taking the mystery out of penny auctions for new bidders and to help the industry gain broader acceptance in the marketplace as a legitimate business. The penny auctions industry has been under fire for numerous reasons during the past few years and none more constant than consumers feeling misled by advertising. A recent publication at the Guardian.co.uk being one of the latest major news outlets to raise the warning on penny auctions. These consumer complaints have made it harder and harder for consumers to find legitimate penny auction sites. These complaints have also made it harder for the legitimate sites to communicate their message effectively to a skeptical public.
PennyAuctionSites.com new penny bidding guide acts as a new resource to educate consumers and explain in easy to understand language how penny auctions work. The goal is to empower users can make informed decisions about what they are participating in before they purchase their first bid at any penny auction website.
Here is a quick overview of how a penny auction website works.
- Penny auction puts an item up for sale at $0.00 and a count down clock.
- To participate, users must purchase bids which cost around $.60 each depending on which penny auction site the bids are purchased from
- Each time the bid button is clicked, the auction price increases by a fixed amount, usually one penny
- A certain amount of time is added to the count down clock, usually around 10-20 seconds.
- Anyone can bid at any time before the count down clock reaches 'SOLD'.
- The last person to place a bid prior to the auction clock reaching 'SOLD' wins the auction
Here is an example of how a penny bidding site generates revenue off of an auction that closes for $1.00. The first thing to understand is that the ending price of an auction is more a total count of how many bids were placed in this auction than as an amount of money generated by the penny auction site.
An auction that ends at one dollar means that 100 bids were placed in total by bidders trying to win this item. To calculate the total amount of bid revenue generated by the penny auction site, the cost per bids is multiplied by the total bids placed in the auction. Since each bid raises the price of the item by one penny, an auction that closes at one dollar means that 100 bids were placed. 100 bids times sixty cents per bid equals sixty dollars (100 x $0.60 = $60).
When asked about the bidders guide, Jason Spry with http://www.PennyAuctionSites.com said, "I want bidders to understand what they are getting into before they start placing bids and spending money. It is not discount shopping. Our Penny Auctions 101 guide helps bridge the gap for new bidders about what is going on and gives ideas to help win." The first time I bid on a penny auction site I had little real clue about what was going on and ended up losing more money than I should have. If our new bidders guide can help others avoid making the same mistakes I made while also helping educate the marketplace and maybe helping to legitimize the industry a bit more then I feel our guide is successful."
PennyAuctionSites.com maintains a short list of high quality penny auction websites, educational articles and tutorials in addition to strategic bidding advice, penny auction ratings and real player reviews of their favorite penny auctions.