What Is A Penny Auction
Penny auctions are competitive games very similar to poker in certain aspects. If you enjoy strategic games like poker and chess. Or if you just like to gamble and the idea of winning a flat screen HDTV for $75 bucks sounds appealing to you then you want to start bidding in penny auctions.
Here is how they work. Nutshell style.
- Auctions begin at $0.00 and a count down clock
- To participate in an auction, you must purchase ‘bids’. These cost around $0.60 each depending on which site you bid at
- Each time someone bids, the auction price increases by one penny. The count down clock is also increased by around 8-10 seconds
- To win, you must be the last bidder when the count down clock reaches zero or “SOLD”
- Anyone may bid at any time before the count down clock reaches zero
- If you win, you have the right to purchase the item at the auctions ending price, which is usually pennies on the dollar
Best Penny Auction Sites – Where Do I Bid?
I’m only going to list a select few penny auction sites. These are my top picks for best penny auctions to bid at.
- Beezid.com – Tactics and strategies combine for incredible deals
- SkoreIt.com – Engaging and competitive, my personal favorite
- HappyBidDay.com – #1 pick for new bidders
- Quibids.com – Biggest site with lowest overall risk
I have bid at, won and received items from the above penny auction sites.
If you are going to bid (and you should) then bid at one of the above sites. There have been so many scam sites in the penny bidding industry it makes online poker look good.
I will list a few unique details about the above penny auction sites so you can decide where you want to bid.
Legit Penny Auctions – Safe, Fair and Honest
Beezid – advertising on TV they are one of the larger penny auction sites. You will find high end electronics all day long. They are the best place to win gaming consoles like the PS3 and the Xbox. They also have the best line up of products in their beginner only auctions (they call them, ‘cherry auctions’). Be sure you choose your 1st win wisely! They are also one of the toughest and most strategic centric penny auction sites on the market. However, there is a tool out there that can help give you an edge (but it’s still hard to win). See more reading our Beezid.com guide.
SkoreIt – ESPN advertiser with Tom Jackson and Mark Schlerth have made SkoreIt.com one of the fastest growing sites. They have the best playing interface and bidding engine on the market. The way they are set up also allows for a high level of strategic game play. I debate with myself which is the most competitive, SkoreIt or Beezid. SkoreIt is my favorite site to bid on, mostly because they are one of the few penny auction sites with gold and silver, which I love bidding on. They also are the only site with an interactive history, profile and auto-bidding options that really take the game play to the next level. Check out more why I like SkoreIt auction site
Happy Bid Day – I never thought I would enjoy bidding on Happy Bid Day but I really do. I tried them first because they are one of the other few auction sites that have precious metals. While the bidding interface is kind of boring, the deals are awesome! Plus they are newbie friendly with running multiple ‘bid for free’ auctions where you only pay the auctions ending price. The catch is the price jumps up like thirty cents a bid instead of the normal one cent. Still, it is a great way to learn the ropes and see how it works.
QuiBids – These guys are the big boys on the block. They have a ton of auctions every day from the very cheap and easy to win items to the high end stuff. They auction off all kinds of things including trips to New York, gas scooters, Dyson Vacuums and a whole lot more. The most unique thing about QuiBids is that 100% of their auctions offer a buy one now option. This lets you apply any value of spent bids towards purchasing the item directly from the site. This lowers your risk.
Penny Bidding Basics & Overview
Penny auctions are a relatively new type of auction that has evolved on the internet over the past couple of years. I use the word ‘auction’ loosely.
Instead, I like to think of them like a competitive game of ‘chicken’. You can win amazing items like PS3’s, Xbox’s, iPad’s, TV’s and more. Plus, poker players have a built in edge! This is not at all like ebay.
Keep reading, I will explain…
How Does A Penny Site Work – Can You Really Get Cheap Deals by Bidding in Penny Auctions
You may have seen the commercials in TV from the big penny auction sites. I’m talking the real players in the penny auction market, the big penny auction sites. Qbids.com, Beezid or SkoreIt. Skore It has been advertised on ESPN heavily over the past year or so. The penny auction sites advertise incredible deals on items. They show TV’s for $20 bucks, iPad’s for $40. You can win money and you can lose money.
Yes, you can really score great deals in penny auctions. This is not to say it is easy or that everyone can do it but it is possible. But what they don’t tell you is that penny auctions are a competitive game. And poker players have a built in edge over the average player.
What’s The Catch To Penny Auctions?
The big catch to penny auctions are that bids cost money. And you have to purchase bids just to participate in the auction. You have to pay just to bid. If you do not win the auction you still lose money. *Anything you spent on bids you used trying to win the auction is gone. You can win money, but you can lose money. The penny auction sites use a bidding fee auction business model [source] where they focus on selling bids, not on selling products.
So, the long story short is you can win incredible deals but you can also lose money. There is a level of risk involved.
- Each bid costs money. For example, on QuiBids each bid costs $0.60. To buy 100 bids it costs you $60
- Each time you place a bid, that bid is ‘spent’
- If someone else outbids you, that bid is gone and the money is spent
- If you do not win the auction, you still have spent the money
Are Penny Auctions Legit – It Looks Like A Scam (you bastards!)
When I first found a penny auction it looked too good to be true. I mean who wouldn’t pay $4.41 for a $100 Visa Gift Card? I quickly learned that the price of the auction has very little to do with the cost of the item. Many of the negative penny auction reviews you will see around the internet are from people who did not take the time to research exactly what a penny auction site is and how it all works. Instead, they see that there is 44 seconds left on a gold bar auction for under $5 dollars and they sign up and start bidding without realizing how it works. Inevitably the naive bidder does not win the auction, loses money and cries foul. That is how most of the negative penny bidding reviews come to light.
Penny Auction Site Things To Know
- You can win, or you can lose
- There are legit penny auctions. Just understand what you are getting into
- Avoid the untested and unknown sites
- There are a lot of shady penny bidding sites. It is super important to do your homework and bid on the big, trusted and reputable bidding sites
- Seriously, it’s worse than poker in penny auction land. Bid at a good penny auction site ONLY (here is a list)
How Do You Win Penny Auctions
The simple answer is you win a penny auction when you are the last bidder when the clock counts down to ‘SOLD’.
The long answer is that it is a strategic game that involves elements similar to poker. Psychology, intimidation, strategic game play, maneuvering and other tactics come in to play at the best bidding sites.
You try to convince the competition that they may as well not bid because you are just going to keep on bidding no matter what. You want them to stop bidding, they want you to stop bidding and lets see who is going to win. The questions you have to ask yourself is how many bids are you willing to spend to win this auction and how many bids do you think your competition is willing to spend in order to win the auction? Can you convince the other bidders to stop bidding and let you win?
If you are a winning poker player (ok, maybe even break even) then you are likely to be light years ahead of the average bidder on a penny auction site. Why?
Most penny auction bidders are naive. They saw an ad on TV and they think that are about to go discount shopping.
The bidding sites themselves call it entertainment shopping. These people are usually fairly easy pickings for the strategic game players.
Remember, penny auctions are competitive games that require aggression, timing, patience and luck to win and there are strategies that win more and lose less. These are skills and traits that have been developed over the years playing poker.
Personally, I have won thousands of dollars worth of items from penny auctions. Winning way more in value than what I’ve spent. I have received real items in my hands. I’m talking things from flat screens to PS3’s to gift cards at the gas station to a brand new telescope that I used to get incredible views of the moon the other night.
Sure, I’ve lost my fair share of auctions but overall I am way up in value over the course of the year or so I have been bidding on and winning at penny auction sites.
Why Do Poker Players Care About Penny Auctions
Many poker players who have put in a little time studying and developing strategies for bidding in penny auctions have done exceptionally well. I know some of the largest winners at SkoreIt came from a background of playing poker and now make a nice chunk of money off of the items they win for pennies on the dollar.
Plus, penny auctions are still a relatively new phenomenon on the internet and that means that now is the time for opportunity. Take advantage of the skills you have honed playing texas holdem over the past how many ever years and put them to use winning penny auctions. You will be glad you did!
I recommend starting out at one of the big three sites, Quibids, Beezid or SkoreIt. For the best beginner auctions, you can not go wrong with Beezid. They really do have great new player only auctions. Qbids is great because every auction offers a ‘buy it now’ feature that lets you apply any of the money spent on bids trying to win an auctions towards purchasing the item directly. This greatly minimizes your risk. My personal favorite site to play is by for SkoreIt! It was the first site I tried and they allow for a very high level of strategic game play which I love. You can get the SkoreIt masterclass strategy guide that covers everything you need to know about how to score on SkoreIt!.