Saturday, November 27, 2010
Quibids scam or not
Question: Is Quibids a scam?
Verdict: Not scam.
Quibids is a penny auction site, which is quite different from the regular auctions that you are aware of, like traditional auctions or even websites like eBay. Penny auction is a kind of Bidding fee auction, so each bid you place, you need to pay for it.
In spite of what the founder says, there are few parallels between traditional auctions and Quibids. Thus, you should know well the risks of Quibids before venturing to bid on the site. The simple fact is, it is a high-risk-high-return strategy. You might win big time or you might lose a lot of money without anything to show for. There are of course a few Quibids strategies that you can use (read my series on Quibids strategies on this blog) to maximize your returns, but the risk is still there.
That being said, once you understand the risk of Quibids, you will soon find out that Quibids is not a scam. They are here to stay and they have a successful business model. Quibids is not a scam because they will not withhold your winnings or not send you auctions that you have won. They also have plenty of cool features that are not aimed to scam you.
Bottom line: you can trust Quibids, but don't be so sure of your luck!
A number of penny auction sites have recently closed shop. One of the more famous group includes Swipebids/Swipeauctions. This was bad, but it wasn't surprising, considering the way the site was run. It was a totally unsustainable model and there was no way to make sure it was run profitably. I would say it was more like a Ponzi scheme, where all you do all day is to win more bids, which are essentially worthless.
On the other hand, Quibids has real auctions with real products, not just bids. People do win real here. In addition, I am amazed by Quibids in that it was able to come a long way since the first days. They do need to work on many aspects, including some better ways to advertise, but overall, I think Quibids is great and Quibids is not a scam. Quibids is legit company.