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October 09 2012



Is there a way forward for the penny auction industry? It is a tough question to resolve, but let's explore trends and future possibilities. Recent years have seen the rise and subsequent bust of penny auctions. When they going in the United States, they took the internet by storm together a huge boost in the amount of members joining every day. That has been the honeymoon phase for that industry. Obviously this didn't last.

online penny auctions

A lot of sites began using unethical strategies to advertise. Worse, some were outright scams by employing shady business practices, shell-bidding they are driving up prices and deny their visitors the opportunity to win or perhaps outright misleading advertising. This gave a negative name towards the industry as a whole and didn't go best to the ones that were legitimate and genuinely run by individuals who wanted consumers to save while making a profit. Plenty of penny auctions closed shop in this phase.

Following this, merely the best survived. Today, there exists a clear downward trend when it comes to number of new bidders. Consequently, businesses aren't seeing this as an easy money-making scheme anymore and they're forced to observe that penny auctions certainly are a genuine business opportunity and like every business, need initial capital, some time and commitment from your owner. This is actually the only way to draw in shoppers who'll remain loyal.

This new phase has also given rise to numerous new innovations. For example, the increase of the so named "timerless penny auctions" has become a good sign for bidders who don't like traditional auctions and the idea of timers which can be employed. These help appeal to another class of bidders that will save money and stay more assured of a win, in order that overall they could cut costs as opposed to losing.

So where will the future of the penny auction industry lie? In my opinion it is in genuine businesses that survive through a trustworthiness of being good for consumers and that are within it for that long run. Look at Quibids, which can be the actual largest penny auction on the planet. This didn't choose short-cuts at all, even though sometimes overtook it for a small-time, in the long run, it absolutely was Quibids which reigned supreme. This is one way businesses win ultimately.

For smaller sites, they have to consider innovating. How are they distinctive from other similar sites? If your idea is similar to Quibids, how come I ever go to your site with trust issues after i are capable of doing the same with a site I trust more? You have to think with regards to the users, not your own personal profitability alone.

The advantage is the fact that several new penny auctions truly are innovating, particularly the ones which are trying to make the timerless penny auction model be popular.

online penny auctions

From the bidder point of view, you must know all the different types of penny auctions that are on the market, so that you fully realize and know very well what is right for you. Exactly what do you prefer? What is your bidding preferences? What is your risk tolerance and how much risk do you like to take? These are simply a few of the questions that you need to answer before going ahead with joining new sites and looking the waters again. Be sure you study the new models as well.

Don't be the product, buy the product!