It’s all about value proposition and action packed entertainment!
The simple message “Expensive stuff really cheap” always has been, and always will be the world’s most successful marketing message. It works on all markets!
What separates Penny Auctions from regular auctions is that the user can only raise the bid by one-cent increments, hence “Penny Auctions”. The Penny Auction is an old concept; now transformed, modernized and adapted for the web. For each bid the user makes, he is also charged a bidding fee.
These auctions are also a lot faster and action packed than regular auctions; typically the count down timer starts at 60 or 120 seconds. This makes the user experience more exciting and “Casino like”.
The main advantage of a Penny Auction site, seen from the customer’s perspective, is that he or she can buy goods at extreme discounts, often as low as 98-95% cheaper than the retail price/actual value. It is also a very fun and exciting form of entertainment, which is good for customer retention.
The main advantage of a Penny auction site, seen from a business perspective is that as long as you have the traffic, it is a virtual money making machine!
So. “What about the logistics of goods?” you say. Well, there are no logistics. When a customer wins an auction his/her account is automatically funded with the advertised value of the goods in the auction. At the same time, a message is sent to that customer with a link to where he/she can buy the goods. The winner may also decide to buy something completely different with the prize money, or even try his/her luck in your Casino.
The Basics
It’s all about value proposition and action packed entertainment!
The simple message “Expensive stuff really cheap” always has been, and always will be the world’s most successful marketing message. It works on all markets!
What separates Penny Auctions from regular auctions is that the user can only raise the bid by one-cent increments, hence “Penny Auctions”. The Penny Auction is an old concept; now transformed, modernized and adapted for the web. For each bid the user makes, he is also charged a bidding fee.
These auctions are also a lot faster and action packed than regular auctions; typically the count down timer starts at 60 or 120 seconds. This makes the user experience more exciting and “Casino like”.
The main advantage of a Penny Auction site, seen from the customer’s perspective, is that he or she can buy goods at extreme discounts, often as low as 98-95% cheaper than the retail price/actual value. It is also a very fun and exciting form of entertainment, which is good for customer retention.
The main advantage of a Penny auction site, seen from a business perspective is that as long as you have the traffic, it is a virtual money making machine!
So. “What about the logistics of goods?” you say. Well, there are no logistics. When a customer wins an auction his/her account is automatically funded with the advertised value of the goods in the auction. At the same time, a message is sent to that customer with a link to where he/she can buy the goods. The winner may also decide to buy something completely different with the prize money, or even try his/her luck in your Casino.
Ok, you got it. Now take a look at the business model >>