quibids - Penny auctions have become an exceptionally popular business model in the past few years, and genuine sites offer people a very real chance to bag amazing bargains and have great fun into the mix. However, there are people out there who have taken the penny auction business model and turned it into a scam because they can see it’s a great way to make money.
For people who want to join in the fun of the penny auction process, there is a real risk that they will sign up to one of these false sites and lose a lot of money with no real chance of ever winning anything other than debt and disappointment.
The question is, how can you spot a scam site and avoid it at all costs? The good news is that there is a real community of penny auction lovers online who look out for each other and teach rookies how to spot a scam and avoid it.
quibids - If you look around for forums and blogs that promote and discuss these types of auctions you will find a handful of friendly arenas where you can join up and join in and learn all about the massive business behind the success of penny auctions. You will also learn top tips for spotting a false site such as the following: -
1) Check the Alexa rank and traffic statistics of a given site, use the likes of domain name registries to determine who owns a site and how long it has been registered for. Make sure what you’re reading and discovering makes you feel confident about the site.
2) Genuine new sites start off selling small items as this is all they can afford to offer - so new sites that start up with a bang and offer amazing and luxury goods all at once should be looked on with scepticism.
3) Watch bidding patterns before you jump in - if bids are being placed in an automated fashion this suggests a potential scam.
4) Check out the site’s transparency of ownership and terms.
quibids - It’s almost a catch 22 in that the newer the site is the better the chance you have of winning an auction with it because it will be less popular - but the newer the site is the harder it will be to determine whether it’s genuine or not. The word on all the penny auction forums is tread carefully - and if something appears too good to be true then it probably is.