questionshas anyone had real success with penny auction…

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I second that question...anyone???

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I realize the technically, that story fits the definition of "news" but think about how many people will start throwing away money at that site now...

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Only in Michigan.

Anyways, the problem with penny auction sites are that you find a site that is overpopulated and the sellers end up making way more money back then what they put in (obviously why they're in business) but the chances of you winning anything worthwhile are extremely low. On the flipside, if you do find a new site with low traffic, you have to ask yourself if this is a reliable site or not.

The guy in the linked article found a sweetspot. And, look at it from a web publishers point of view. This site lost a LOT of money on the new car. But the amount of traffic the site has gotten from just that one car? Definitely worth a hundred more cars.

I guess what I'm trying to say is that yes, you could get lucky and get a great deal on something, but you probably won't. Use it as a hobby, treat it like gambling (if you're not a big gambler), don't think you're going to win anything worthwhile.

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Let's say they put up a $500 TV for auction. If they sell it for $50, they've made all of the money they have invested in it, because it costs $1 for each vote submitted. Usually, the items go for about half the retail price, so for this $250. Now, they've made $2500 on an item that only costs them $500. Sure, the winner is pleased that they got it for so cheap, but the company is raking in loads of money by misleading customers with hardly achievable auction formats.

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@capguncowboy: Wait -- my math is wrong. They have to sell it for $5 to make all of their money back, and if they sell it for half the price they paid for it, they rake in $25,000. Kind of makes me want to start a scam site ;)

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where they get you is that you can't just bid high from the beginning, you're forced to bid in increments. and each increment brings the total up a few cents but costs you more than those few cents

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@w00tgurl: right, I understand 100% how they work, and that they can usually make enormous profits on each item

My question was, has anyone (HERE) had real success with (any) penny auction sites.

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@kamikazeken: then no, and i never will cuz just like when i played the nickel slots in AC, i never win anything
i have better odds winning on woot!

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I've won my BOC than things on a penny website. :)

Go Woot!