beezid - Penny auction sites are appearing all around the web nowadays and it can seem like they are too good to be true; however, by following some simple rules and using them with a strategy, it’s child’s play.
beezid - The first rule is to determine how much they are willing to lose before getting fully involved with the penny auction format. This will stop the thrill of the competition being ruined by money problems.
beezid - Secondly, you’ll never loose so long as your bidding on a product that your willing to pay around full price for on a site with the ‘buy it now’ function. The way that this function works is by allowing any user that has placed bids to exchange the amount of bids that they have used for a discount off the retail price.
For example; If one wanted an iPod worth 200$, and used 100$ worth of bids, if they lost, they would still be able to buy the iPod for 100$, and possibly even cheaper on sites where products are sold at ‘buy it now’ under retail price.
The third rule is that to be almost guaranteed a win on established sites with many users, you should aim to spend around half of the product’s value on bid credits. However, when using new sites with few users this amount is much smaller and items such as iPods can be won literally for pennies. It is therefore important to constantly be searching for new penny auction sites, that have good reviews and testimonials to prove their legitimacy.
Finally, do your research! It is vital to know your opponents; watch auctions before using your bids and track the most frequent bidders, then you’ll know what your up against when it comes to the auction that your in to win.