Auction Money Making technique: IS THIS LEGAL?! - GoFuckYourself.com

$5 submissions · 04-21-2009, 08:16 PM

http://www.swoopo.com/new.html

Breakdown: People pay a fee to place a bid on an auction. The site spends full price on a prize, people pay such minimal fees that they don't mind bidding--a lot. Aggregate the bid fees and the site makes way more money than it spent.

Legal?

collegeboobies · 04-21-2009, 08:34 PM

These guys have been around a while. There is actually a method out there to win the items at a low price with very few bids.

woj · 04-21-2009, 08:42 PM

It's basically a twist to an "All-pay auction" model, which is I think illegal in the US, but legal in some countries...

hypedough · 04-21-2009, 08:43 PM

Quote:

Originally Posted by collegeboobies

These guys have been around a while. There is actually a method out there to win the items at a low price with very few bids.

There is?

$5 submissions · 04-21-2009, 08:47 PM

Quote:

Originally Posted by woj

It's basically a twist to an "All-pay auction" model, which is I think illegal in the US, but legal in some countries...

Got a link re legality in US?

RevTKS69 · 04-21-2009, 08:53 PM

I am not sure about the legality of it, but I wish I had thought of it

Also, they bill themselves as 'entertainment shopping' so that may be part of how they are skirting certain issues.

Best I can tell, they are using only items that they can have drop-shipped, so they don't even keep an inventory.

Freaking Geniuses!

$5 submissions · 04-21-2009, 08:57 PM

Quote:

Originally Posted by RevTKS69

Best I can tell, they are using only items that they can have drop-shipped, so they don't even keep an inventory.

This part is full of WIN!

That site got me thinking re other items that can be marketed that way

woj · 04-21-2009, 08:58 PM

Quote:

Originally Posted by $5 submissions

Got a link re legality in US?

No, I saw it discussed somewhere a while ago, someone said that it's illegal in US, but legal in Europe I think... it was just someone's opinion though, it wasn't a credible source for sure... I didn't look into it very closely, but all the sites I checked were indeed based outside of the US....

woj · 04-21-2009, 09:08 PM

It's quite possible it may be legal in the US ->
http://www.law.yale.edu/news/8570.htm

there is no mention of it being illegal in that article...

PornMD · 04-21-2009, 09:19 PM

It's illegal in certain states from what I recall. There was a domainer that tried using a similar approach to auctioning off a domain several months ago which caused quite an uproar, though part of the uproar was because it was a "mystery" domain which he was guaranteeing bying off the winner for $10,000 if they wished - ergo he was auctioning off $10,000, and THAT I'm pretty sure is against the law in every state.

$5 submissions · 04-21-2009, 09:40 PM

The legality of this method seems iffy cuz it smacks against gaming laws. In France or England, Im not sure, according to CNBC, some guy sold his house for quite a chunk of change despite the down market by dividing into into $1 tickets. Sadly, gaming enforcement authorities were on him like white on rice.

Quote:

Originally Posted by woj

No, I saw it discussed somewhere a while ago, someone said that it's illegal in US, but legal in Europe I think... it was just someone's opinion though, it wasn't a credible source for sure... I didn't look into it very closely, but all the sites I checked were indeed based outside of the US....

$5 submissions · 04-21-2009, 10:10 PM

Definitely needs to be done offshore

04-21-2009, 10:23 PM

50 bids just sold for $1.59, i guess that means its REAL?

kinda defeats the entire purpose when they say bids are 15 cents or 75 cents and then you see bids are worthless.
and are you going to be the one who bids .98 cents for a camera knowing it costing you 15 cents when you KNOW its gonna go higher??
This is why its flawed...

Jakez · 04-21-2009, 11:35 PM

Damn, I don't get it

04-21-2009, 08:16 PM	#1
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	Auction Money Making technique: IS THIS LEGAL?! http://www.swoopo.com/new.html Breakdown: People pay a fee to place a bid on an auction. The site spends full price on a prize, people pay such minimal fees that they don't mind bidding--a lot. Aggregate the bid fees and the site makes way more money than it spent. Legal? __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

04-21-2009, 08:42 PM	#3
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	It's basically a twist to an "All-pay auction" model, which is I think illegal in the US, but legal in some countries... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

04-21-2009, 08:53 PM	#6
RevTKS69 Confirmed User Join Date: Dec 2008 Location: West Texas Posts: 231	I am not sure about the legality of it, but I wish I had thought of it Also, they bill themselves as 'entertainment shopping' so that may be part of how they are skirting certain issues. Best I can tell, they are using only items that they can have drop-shipped, so they don't even keep an inventory. Freaking Geniuses! __________________ www.sexyschiava.com - Amateur BDSM www.adultblogreview.com - Starting a new review site, positions available

04-21-2009, 09:08 PM	#9
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	It's quite possible it may be legal in the US -> http://www.law.yale.edu/news/8570.htm there is no mention of it being illegal in that article... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

04-21-2009, 09:19 PM	#10
PornMD Mainstream Businessman Industry Role: Join Date: Jan 2007 Location: San Diego Posts: 9,291	It's illegal in certain states from what I recall. There was a domainer that tried using a similar approach to auctioning off a domain several months ago which caused quite an uproar, though part of the uproar was because it was a "mystery" domain which he was guaranteeing bying off the winner for $10,000 if they wished - ergo he was auctioning off $10,000, and THAT I'm pretty sure is against the law in every state. __________________ Want to crush it in mainstream with Facebook ads? Hit me up.

04-21-2009, 08:34 PM	#2
collegeboobies So Fucking Banned Join Date: Jul 2004 Posts: 3,644	These guys have been around a while. There is actually a method out there to win the items at a low price with very few bids.

04-21-2009, 10:10 PM	#12
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	Definitely needs to be done offshore __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

04-21-2009, 10:23 PM	#13
MrCodey Guest Posts: n/a	50 bids just sold for $1.59, i guess that means its REAL? kinda defeats the entire purpose when they say bids are 15 cents or 75 cents and then you see bids are worthless. and are you going to be the one who bids .98 cents for a camera knowing it costing you 15 cents when you KNOW its gonna go higher?? This is why its flawed... Last edited by MrCodey; 04-21-2009 at 10:26 PM.. Reason: adding

04-21-2009, 11:35 PM	#14
Jakez Confirmed User Industry Role: Join Date: Jan 2004 Location: oddfuturewolfgangkillthemall!!!!!!! Posts: 5,656	Damn, I don't get it __________________ [email protected] - jakezdumb - 573689400 Killuminati