The New Penny Auction Business Model: Sharing Their Daily Revenue With Bidders

beezid scam - Something magical happens when you combine three already powerful and successful business models into a new exciting, transformative one. This is the case with a unique concept introduced recently in the penny auction industry… revenue sharing with customers who bid at the auctions.

What has emerged is a combination of competitive fun entertainment, hugely discounted brand name items for online shopping, capped by a network marketing compensation model to bring in passive income. The excitement of a penny auction where you bid a penny a time on brand new merchandise… electronics, jewelry, home appliances and even gift cards at close to 90 percent off retail blends with a business opportunity where the customer shares in the daily profits of the company. A referral commission is also paid to those interested in that aspect.
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Success Factors

1. Collective Advertising… instead of paying advertising companies to market the site, company creates ads, compiles lists of free places to advertise, and bidders just place the ads at those sites, free of charge. Imaging hundreds doing that daily… this brings in tons of visitors (many electing to be customers), to the site daily. This changes the way the website gets traffic.

2. Customer Loyalty. Penny auctions rely for their survival on a constant stream of new customers and offer many incentives to turn them into loyal customers. This requires a customer friendly portal, bid excitement, excellent customer service and rewards that outmatch their competitors. Keeping customers happy, excited, and satisfied, plus a site that is attractive and easy to navigate is a prerequisite to sustainability.

3. Compensation. The new model is laudable in that it allows not only revenue sharing on a daily basis, but offers the option for bidders to compound the reward money daily. The difference between accepting the payments daily in cash or compounding them daily is huge. At this time only one company has taken the plunge to offer this exciting innovation in the penny auction industry. But it wont be long before others follow, sharing their revenue with their community of users.

4. Company Profits. How is a site able to sell brand new electronics that cost hundreds, even thousands of dollars for one tenth of their retail price and show a profit? The answer is bid sales. Say an item retails for $500… and each bid costs say $1, and the product sells at the end of the auction for $15, the penny auction site in fact sold the item after 1500 bids were placed on it… that’s $1500, for a profit of $1000 on one item. This goes on at various price points all day long. Huge profits are made daily.

beezid scam - Advertising expenses can eat into such profits, so the model of collective advertising by bidders at little or no upfront costs and sharing a small portion of profits daily with the bidders is smart, sensible and eminently productive.