Quote:
Originally Posted by Jakez
People saying it's a scam should think more in depth about how these sites work before jumping to that conclusion, it's nearly the same as saying poker is a scam, but it's not, it's a gamble with odds increased by experience or skill. In any case as I've said my cousin has been winning things at extremely cheap prices (bidding expenses included) so it's obviously not a scam. Yeah the brand new 'penny bid' sites are probably using fake bids but an established one could work without them.
The only thing I don't understand at this point is how they are making money off from the 'expert' labeled bidders who are bidding for very cheap. They must be losing money on expert bidders and making a huge profit off from the auctions that onoy beginners can bid on.
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The power bidders are one of the main reasons of failure to the new penny auction sites. When you advertise a new site you advertise on the penny auction forums blogs and other sites. The power bidders watch those like a hawk. So, when a new site starts it is usaully filled full of power bidders that know each other, and any new person or average bidder gets killed in any auction that they try to win. After that they have the this is a scam mentality and never come back. Thus not keeping the retention they need to keep the site alive.
Most sites have a win limit and or will label the power bidders so they can keep losses low and know who to watch out for.