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Saturday, May 28, 2011

Penny Auction Strategies: How to Win Penny Auctions

These penny auction strategies will help you win penny auctions. Please note beforehand that there is absolutely no penny auction strategy that will guarantee you a win. Ever. If anyone claims to do so, like the countless Youtube videos that you see, it is simply BS - beware of the snake oil salesmen around this industry.

So why is there no foolproof penny auction strategy? Simple, because winning these auctions doesn't just depend on what you do but also on what others do. Ultimately, there is just one winner. Think about it, what if all players are using the "100% guaranteed win on penny auction strategy"? Who will win?

Sometimes, at penny auctions, you should know when to quit. Without knowing this, you might end up overbidding and thus potentially losing a lot of money.

Penny Auction Strategy-1: Plan Your Products Ahead of Time 
How many times have you gone into a store and tempted to buy something you don't need, specially when it is at a discount. Huge discount. How many times have you been tempted by infomercials that promise to "double your order" for just $19.95 and never used it ever. This is what happens with penny auctions too.

Different penny auctions have different products on sale. These can range from electronics to gift cards. Do not bid on items that you don't need - there is absolutely no point in risking your money for something that ultimately you don't need any way. Bid only on those products which you would want anyway and perhaps buy them from Amazon in any case if you don't win it.

This penny auction strategy should also be followed with those sites that offer a Buy Now feature, like Quibids, BidRivals and DealDash. These penny auctions allow you to buy an item you lost at full retail, so you don't waste money on bids. However, if you end up buying an item that you don't need at full retail, I think it is just a waste of money.

So remember that to get the best penny auction deals, you should plan what products you need in advance.

Penny Auction Strategy-2: Plan a Budget 
You will be surprised by the number of penny auction bidders who overbid on items. This is a serious problem and should not take place. It is easy to get lost in the excitement of a penny auction, but there is a time to let go. Without knowing when to let go, you can go on spending on an endless spree. There is no end to to the potential losses that you can take.

It is also for this reason that I advise never to bid on penny auctions with the money that you really need - the money to pay your groceries or mortgage. Instead, only bid with the extra money you have saved and know the risk. Always know the risk before starting - some penny auctions involve the risk of losing all the money while other penny auctions entail the risk of buying the item at full retail or losing all your money. Knowledge is power in this case.

Penny Auction Strategy-3: Choose your Penny Auctions Wisely 
This is perhaps one of the most important penny auction strategy that there is. You should know which penny auction sites to bid on. Choosing the right site can make or break the profits that you expect to get from these auctions. While deciding which penny auctions to join, you should look at the following -
  • Legitimacy of the Penny Auction: This is the most important feature. The penny auction should ship the items that you win and not employ any bots for bidding against you. It is the most important aspect of any penny auction that you should look. 
  • Competition: This is the next aspect. Among all the legitimate penny auctions, you should find the ones that are less competitive, i.e. more products with less bidders. A preview of previously closed auctions should give you a good idea. 
  • Product Selection: The penny auction that you select should sell the products that you are interested in. This will ensure that you don't waste money on products that you don't like. Of late, there are many niche penny auctions, so join such sites only if you are interested in the niche. 
You should check out my blog regularly for the best penny auctions. I try to get in touch directly with the owner and only then recommend penny auctions that I think are legitimate and less competitive. My readers have had excellent results from the penny auctions that I recommended to them.

Penny Auction Strategy-4: Know When to Bid
Penny auctions have varying degrees of competition throughout the day. Also, there is a lot of variation along the week. It is very important that you know what the best time for bidding at your penny auction is. I write about this for some penny auctions, like What's the Best Time to Bid on Quibids.

Time timing of bidding is important and it really depends from one penny auction to another. As a general rule, there are more bidders during nights and weekends, but then some penny auctions might have more products during these times. There are also special times and occasions where you can look for less competition. You should do your research in advance for this penny auction strategy to work. If you want me to research the best time to bid on penny auctions for a particular site, just let me know and I'd be happy to help.

Penny Auction Strategy-5: Know the Volunteer's Dilemma 
The volunteer's dilemma penny auction strategy, first reported on this blog, is a very powerful game theory rule that can help you win penny auctions. The more such chances of dilemma you create, the higher your chances of winning. You should preferably watch a few auctions which show the Volunteer's Dilemma strategy so you understand it better.

Penny Auction Strategy-6: Beware of Bid Voucher Auctions 
Yes, beware of bid voucher auctions. This is a strange penny auction strategy to mention but is very helpful. There are only certain penny auction sites where you should look to bid on bid vouchers. For example, I explain in my Quibids strategy for Bid Vouchers why it is not a very good idea to bid on voucher bids at Quibids, because you cannot use them for Buy Now feature.

Some penny auctions don't offer the Buy Now feature and their voucher bids can be less competitive, so you might want to try those out. However, generally bid vouchers are one of the most competitive auctions, so you should always be careful. Look at the previous history and closed auctions to get an idea.

Penny Auction Strategy-7: Winning Big Items 
If you are new to penny auctions, I don't suggest going for the Macbook or iPad right away. These tend to be very competitive. I will soon publish an eBook that will give all the details on how exactly you should go about winning big-ticket items because there is just a lot to be said. For now, let me just say that winning big ticket items is very different from winning small gift cards. At Quibids, you might check out my post on How to Win Quibids Macbooks and other items. However, there could be better options than Quibids if you are serious about winning that Macbook.

These are my penny auction strategies I use and have studied on thousands of auctions online. When I complete my eBook, I'll give many more intricate details and strategies that will help you win penny auctions. Don't forget to leave a comment!

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