Cash auctions are starting to become more and more popular among penny auction sites these days. The most common amount of cash is about $5oo. But the truth is… everybody wants cash! the reason these types of auctions are becoming more popular is simply because penny auction sites make a lot of profit from them.
Niche items such as golf clubs are easier to win because naturally the people that bid will be generally the people that like to play golf so that eliminates many of the people that don’t. So when it comes to cash auctions, everybody will be trying to win because there is not one person on the whole site that wouldn’t want $500.
This is discussed further on scambusters -
That means from the penny bid auction’s point of view, an item that “sold” for $20 will actually have required 2,000 bids (the number of cents in $20). So the site operators have already made $2,000 from the bid credits they sold!
Just to make things a little trickier, the auction deadline gets pushed back or is totally reset each time a penny bid is made, so you never actually know when the auction is going to end.
Cash auctions can seem very appealing at first but you need to take a step back and think about all the people that are getting ready to bid. Because it’s not like there is hundreds of different cash auctions on at the same time, you usually won’t find more then 2 or maybe even 3 at a time so the auctions are going to be crowded with your competitors.
In terms of the post above, its true that on some auctions, the sites make an absolute fortune. However, on the flip side the sites can also make a massive lost. We’ve seen items worth over $1000 end at $0.01. It’s very unlikely and doesn’t happen often but it is possible.
You can find cash auctions on the majority of the penny auction sites, here is a few:
There are other penny auction sites that are dedicated to cash auctions, we have not reviewed these so we can’t recommend them. But as we have stated many times before, these less known penny auction sites usually aren’t trustworthy, heres a post from onguardonline which explains some of the practices these sites use.
Bogus Bidders: Bots and Shills
Some dishonest auction sites use bid bots, which are computer programs that automatically bid on behalf of the website. And some fraudulent sites achieve the same effect using human shills. You may be seconds away from winning an auction when another user places a bid. That keeps the clock ticking, and forces you into a bidding war to stay in first place. Though the bidder appears to be another user, it may be a shill, or a bot programmed by the website to extend the auction and keep people bidding (and spending money) as they chase the “win.”
It’s difficult to prove whether penny auction sites use these bots as we discussed in our legit penny auctions post. Because who is to say that it isn’t an actual real bidder, it’s very hard to prove. But one thing for sure is that some of the big sites wouldn’t get away with using such a tool.
We feel that cash auctions don’t need to be discussed much further. We couldn’t win any of these types of auctions and we spent hundreds, nearly thousands of bids trying to win them. It’s much better to use your bids on other items, gift cards is a good option. But anything that is out of the ordinary is generally a good bet, simply because people won’t be looking for that specific item.
We talk about this more on our strategies page. But getting back to cash auctions, if you are thinking of bidding, then just a site that has a good reputation so that you know you won’t get ripped off, it doesn’t matter how good some of these other penny auction sites look, if they have a history of ripping their customers off then it is best to avoid them completely.