Money deposited = revenues. Once a customer purchases a bid package, he cannot change it back to money.
Here is how the auctions work:
The auction starts at €0. (EUR, GBP, USD or any other currency, depending on configuration.)
The first bid is placed. This starts the auction.
Each auction has a timer, counting backwards. When the timer hits 0, the auction is closed and the current highest bidder wins the auction. The auction timer is 100% configurable but is typically at 30-120 seconds.
Bids can be placed in one-cent increments only. Each bid placed by a bidder raises the final price of the auction by € 0,01
At any time during the auction is live (defined by the timer not reaching 0), new bids can be placed by other bidders. The timer is then reset to the configured time and starts the countdown again.
Each bid is charged a bidding fee.
Bids can be placed either on the web site or by SMS
The highest bidder, when the timer reach 0 has won the auction and is entitled to buy the auctioned item at the said price.
The typical winning bid can yield a discount of up to 95-98% off an item’s retail price.
The Business Model
Here is how the auctions work:
Now take a look at an example auction and the figures behind it >>