Posted by: realestatewebtrainer | July 4, 2011

New iPad for $23.74 – Are we ever going to learn?

Offers that sound to good to be true are exactly that – too good to be true; yet as a nation, we fall for these outrageous offerings – When are we going to learn?

Have you seen the QuiBids Commercial, with the lovely presenter opening with: “Are you ready to save 95% on what you want most?” No one in their right mind would answer “No!” to this outrageous offer; and deep down everyone knows there is a scam hiding beneath these claims, yet we get hooked.

Please sign me up for your latest Scam!

So let’s reveal how these type of Penny Auction Websites work:

1. You pay to Bid; when you sign up you buy a package of Bids; the cost of theses bids are usually between $0.25 and $1.00; this is not the amount you bid – but the cost of the bidding process. This is Not the same as traditional auction websites when the winner of the auction pays for the product and those who lose have only lost time and effort. If you bid 20 times on an item at $0.25 each time and someone else wins the bid; you have lost $5.

Note: The Bid can increase the price of the item by $0.05 or $0.10 each time, but the price “to bid” is usually higher depending on the item being bid on and it usually between $0.25 and $1.00. Don’t confuse the two – that’s how they get you!

2. You may say; what’s 5 Dollars when you can win a Monster HD TV Screen for $100? – Ah, the trick is that you have become a Gambler. The moment you exchange Money for the Hope of winning you are no longer a consumer, but a Las Vegas Gambler – the experts will tell you that these kind of websites become very addictive; the thrill of winning overtakes the satisfaction of purchasing a much needed item.

3. Every time someone Bids “Time is added to the clock!” – this in essence makes the process last longer and gives it the enjoyment of a “Game Show!” – you are essentially paying to play!

4. These type of websites are not affected by “The Selling of Merchandise” – they make money from those who do not win the bids they place. Some of these Penny Auctions have added a button that allows consumers to “Buy Now” at Retail prices; Are you kidding me? Why not just buy it from Amazon or Wal-Mart?

5. How about “Return Policies” if the item is defective; how about Customer Service for problems with your account – some of these sites offer no number for you to call.

The Federal Trade Commission recently took action against the operators of SwipeBids, alleging they swindled customers out of $467 Million Dollars through multiple online scams.

When are we going to learn that Gambling, Gaming, and Economics are not the same – if it is too good to be true someone is being taken advantage of; if it’s not you – then it’s your neighbor!

Happy Blogging 🙂 – Key Yessaad, Real Estate SEO Trainer

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