DeAnne
Mike CrowlBeezid - is it a scam?
July 7th 2010 06:23
Penny auctions have gotten a bad name lately, because so many people think they are scams. I've been watching beezid.com, and I truly thought it was legit - but realize they are making a killing on pay-per-bids.
In case you don't know about penny auctions yet - let me explain how they work.
You pay for bids - in advance by either buying bid packs or winning them by bidding on them. On beezid.com they offer 50 bid packs and 100 bid packs as "bid for free" auctions - meaning it doesn't cost you any bids from your account to bid on them. To purchase bid packs outright, you'll pay from 60˘ to $1 per bid. Then, when you bid on an auction item, it costs you one bid from your account (therefore, every time you place a bid, you're spending aobut 60˘). Every bid increases the purchase price by 1˘. When it gets down to the final 10-30 seconds, every bid also resets the timer. (Each item has a specified timer 10, 15, 20, or 30 seconds.) When no one bids before the timer resets, the last bidder wins. Most items go for about 15% of the retail price, plus shipping and handling. A great deal! Even when you consider the cost of your bids, it is possible to get some great bargains.
It's also possible to waste a lot of money on bids, and never win anything. Hence the controversy. As I stated above, until tonight I figured it was legit. I thought it was a brilliant idea - if a $100 item goes for $5.00, figuring the average cost of bids is 60˘, they've made a $200 profit. Great business!
When I read complaints about them on other websites, I thought, yeah - it's alot like gambling, and I can see getting upset if you never won anything, but I figured that was part of the fun - the excitement of it - the risk involved. I don't mind spending a few bucks for a chance at a really good deal. As long as it really is legitimate.
Tonight, however, I think it just might be a scam. I'm sure that some real people win the auctions, but I'm nearly positive there are bots or whatever - bidders that drive it up and keep the real people bidding against them. Either that, or there are some really stupid people with more money than sense bidding on there.
What changed my mind? I watched the bidding on an auction for a 200 bid pack. There were several people who bid at least 50 times. Ok - I can see bidding 50 times to get a 200 bid pack for 5 bucks - when it retails for $120. But - there were two bidders who each bid OVER 200 times - on a 200 bid pack. I don't care how you look at it, that doesn't make sense.
Those bidders had to be just there to jack up the price and get real bidders to bid against them.
So - if you participate in penny auctions. Be sure to watch for awhile. Get familiar with the usernames that bid way too often for the item. You know there is no way they are paying 60˘ per bid - or even 1˘ per bid - because it wouldn't make sense to risk more bids than what you are getting. You might get lucky and get a great deal - but watch what you are doing, and know who you are bidding against.
In case you don't know about penny auctions yet - let me explain how they work.
You pay for bids - in advance by either buying bid packs or winning them by bidding on them. On beezid.com they offer 50 bid packs and 100 bid packs as "bid for free" auctions - meaning it doesn't cost you any bids from your account to bid on them. To purchase bid packs outright, you'll pay from 60˘ to $1 per bid. Then, when you bid on an auction item, it costs you one bid from your account (therefore, every time you place a bid, you're spending aobut 60˘). Every bid increases the purchase price by 1˘. When it gets down to the final 10-30 seconds, every bid also resets the timer. (Each item has a specified timer 10, 15, 20, or 30 seconds.) When no one bids before the timer resets, the last bidder wins. Most items go for about 15% of the retail price, plus shipping and handling. A great deal! Even when you consider the cost of your bids, it is possible to get some great bargains.
It's also possible to waste a lot of money on bids, and never win anything. Hence the controversy. As I stated above, until tonight I figured it was legit. I thought it was a brilliant idea - if a $100 item goes for $5.00, figuring the average cost of bids is 60˘, they've made a $200 profit. Great business!
When I read complaints about them on other websites, I thought, yeah - it's alot like gambling, and I can see getting upset if you never won anything, but I figured that was part of the fun - the excitement of it - the risk involved. I don't mind spending a few bucks for a chance at a really good deal. As long as it really is legitimate.
Tonight, however, I think it just might be a scam. I'm sure that some real people win the auctions, but I'm nearly positive there are bots or whatever - bidders that drive it up and keep the real people bidding against them. Either that, or there are some really stupid people with more money than sense bidding on there.
What changed my mind? I watched the bidding on an auction for a 200 bid pack. There were several people who bid at least 50 times. Ok - I can see bidding 50 times to get a 200 bid pack for 5 bucks - when it retails for $120. But - there were two bidders who each bid OVER 200 times - on a 200 bid pack. I don't care how you look at it, that doesn't make sense.
Those bidders had to be just there to jack up the price and get real bidders to bid against them.
So - if you participate in penny auctions. Be sure to watch for awhile. Get familiar with the usernames that bid way too often for the item. You know there is no way they are paying 60˘ per bid - or even 1˘ per bid - because it wouldn't make sense to risk more bids than what you are getting. You might get lucky and get a great deal - but watch what you are doing, and know who you are bidding against.
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