Anyone have any experience with the penny auction site deal now or anything similar? Is it legit or just a scam?
They are “legit” in that if you win they will send you the product.
They are just a really bad idea, since most of the bidders pay quite a bit and get nothing. Many have also engaged in questionable business practices like tethering dissimilar auctions, but only having one winner (so they increase bids faster and give away less stuff).
Sample Auction: $500 ipad “bought for only $68”
Well the auction starts at $0.01 and goes up one penny every bid. That’s 6799 bids. Each bid costs $0.60 to place, so that’s $4079.40 paid by all the bidders, plus the $68 the “winner” pays, so the company makes $4147.40 on a $500 ipad. Most users churn after spending a lot and winning nothing.
Disclaimer: I was approached about being the GM for the US division of one of the largest penny auction sites. I declined since I’d rather do something I can be proud of, and look my family in the eye at Thanksgiving.