Are Penny Auctions Genuine?

Well just like everything else there are some Penny auctions that are not legit and tend to be scams, but I would say you can find some that really work well and will allow you to really get some great deals on high end electronics, gift cards, etc..

How do penny auctions work exactly?

Many feel that Penny Auctions could possibly be a scam, but I do not believe they are and as long as they tell the truth and completely disclose everything than you are safe. Below we found this outline on another site of how a penny auction website workds and we want to share it with you:


1. A product, such as a laptop, is put up for auction starting at $0.01
2. Penny auctions are auctions where you buy your bids, and as you bid the price goes up by a set increment (usually a penny) and more time is added to the timer.
3. The winner is the last one to place a bid when the timer reaches zero.
4. The retail price, let's say is $500.00.
5. The auction hopes the item will receive enough bids to cover the cost of the item, and make some profit.

For example:
1. Let's say the bid price was $0.50 each
2. Using the above laptop, the penny auction would want more than 1,000 bids placed to break even.
1,000 bids would bring the price of the auction to only $10.00.
3. If you were the 1,000th bid and the timer reached zero you would be the winner, and after paying the $10.00 and shipping, the laptop would be yours.


Here is a hot new Penny auction that will be launching soon:

Bid4cheaponline.com