Only one big question this week but that doesn’t make it less interesting or important.
Q. If I’m going to make money from my penny auction site is there a way I could artificially raise the price of the product or if it is possible to define a minimum price limit for an auction?
A. We often hear this question, and we have to note that a lot of people who plan to open a penny auction site have a strong misconception on how to make a site profitable. The important thing is this – penny auctions income doesn’t come from selling products! The majority of income is generated by active bidding ( user participation in auctions and buying of bid-packages). Earlier we described the income formula here.
For the second part of the question, we strongly do not recommend usage of bots, use of any other methods of manipulation to artificially raise the price of your prizes, or your income. Treat your customers with care and respect and they will keep coming back to your site, generating more and more profit in a more natural way.
Spend time to develop your strategy and plan ahead - our penny auction software provides a lot of ways you can make your PA site more entertaining without any foul play .
Friday, January 20, 2012
Thursday, January 19, 2012
Penny stories #1
Recently a penny that used to worth only 1 cent way back in the late 1700s was sold at auction in Florida for a stunning record braking $1.38 million! Now that’s one pricy penny.
The supposedly “historic” penny was made at the Mint in Philadelphia in 1793, during the first year that the United States started making its own coins after gaining independence from Great Britain.
You can read more at http://www.nydailynews.com/news/national/historic-penny-sells-1-38-million-florida-auction-setting-record-article-1.1002456
The supposedly “historic” penny was made at the Mint in Philadelphia in 1793, during the first year that the United States started making its own coins after gaining independence from Great Britain.
You can read more at http://www.nydailynews.com/news/national/historic-penny-sells-1-38-million-florida-auction-setting-record-article-1.1002456
Friday, January 13, 2012
Q and A about penny auction software
Q. I need penny auction software for selling my specific products
A. Truly speaking, there’s a difference between regular e-commerce and penny auctions.
What we offer is a platform for entertainment auctions, and like any form of entertainment it’s profitable only when there’s a crowd involved. Your products can be one of a kind unique items, but they will bring you money only if you have plenty of visitors.
So the broader the product niche the more bidders you can attract and the more income you can generate.
Q.One thing I would like to ask is what modules do you recommend for start?
A. Excellent question. There are a lot of feurures to choose from, both adding completely new features and extending default ones, the desire to achieve total control can be tempting but it’s important never to loose focus.
We divided our penny auction software modules into five different groups to make it easier for our customers to workout a development strategy plan for their auction.
Don't focus on just one aspect of your auction features, choose a balanced mix between: usability, marketing, communication and administration modules depending on your business plan and customers' needs. Also after launch you can introduce fresh features as newly added to promote your website and let people know that your working hard to provide them with the best experience.
A. Truly speaking, there’s a difference between regular e-commerce and penny auctions.
What we offer is a platform for entertainment auctions, and like any form of entertainment it’s profitable only when there’s a crowd involved. Your products can be one of a kind unique items, but they will bring you money only if you have plenty of visitors.
So the broader the product niche the more bidders you can attract and the more income you can generate.
Q.One thing I would like to ask is what modules do you recommend for start?
A. Excellent question. There are a lot of feurures to choose from, both adding completely new features and extending default ones, the desire to achieve total control can be tempting but it’s important never to loose focus.
We divided our penny auction software modules into five different groups to make it easier for our customers to workout a development strategy plan for their auction.
Don't focus on just one aspect of your auction features, choose a balanced mix between: usability, marketing, communication and administration modules depending on your business plan and customers' needs. Also after launch you can introduce fresh features as newly added to promote your website and let people know that your working hard to provide them with the best experience.
Thursday, December 15, 2011
Why do penny auctions really fail?
A while back one of the most well-known blogs on the penny auctions Penny Auction Watch published an article by Chris, the founder of a PennyPurses.com.
We thank Chris for pointing out the importance of preparation. In addition to Cris insiders’ expertise, we’d like to add a few words based on our experience.
• From every 20 people (or groups) wishing to enter the penny auction business, around 15 have a very small business experience;
• From every 20 software providers 15 are incompetent or even frauds.
So when you do the math, you'll get a number of 6.25% that’s the number of all PA that actually have a chance on success. And from our experience that number is more or less accurate.
In conclusion we’d like to share a short abstract from one of our clients’ reviews, founder of Lokuaz.com penny auction.
“I read penny auction forums and I think that people have a wrong impression about the industry and how to setup a company. It is as difficult as setting-up any other company where a very important variable is to create a good relationship and trust with your suppliers. I think that our good relationship with Softmedia is based on the fact that we had a clear business plan and budget, clear idea of what we wanted from the software and our software partner”.
Subscribe, stay informed and good luck!
We thank Chris for pointing out the importance of preparation. In addition to Cris insiders’ expertise, we’d like to add a few words based on our experience.
• From every 20 people (or groups) wishing to enter the penny auction business, around 15 have a very small business experience;
• From every 20 software providers 15 are incompetent or even frauds.
So when you do the math, you'll get a number of 6.25% that’s the number of all PA that actually have a chance on success. And from our experience that number is more or less accurate.
In conclusion we’d like to share a short abstract from one of our clients’ reviews, founder of Lokuaz.com penny auction.
“I read penny auction forums and I think that people have a wrong impression about the industry and how to setup a company. It is as difficult as setting-up any other company where a very important variable is to create a good relationship and trust with your suppliers. I think that our good relationship with Softmedia is based on the fact that we had a clear business plan and budget, clear idea of what we wanted from the software and our software partner”.
Subscribe, stay informed and good luck!
Sunday, November 27, 2011
Belgium to block unlicensed online gambling sites from 2012
The Belgian government announced that it will block access to unlicensed online gambling sites from January 2012. In addition, websites on the 'blacklist' will not be able to process financial transactions coming from, and going into the country.
Peter Naessens, Chief of the Belgian Gaming Commission, reiterated: "After the 1st January, 2012 ISPs will be required to block the access of Belgian citizens to unlicensed internet gambling websites. Belgian banks will also be required to block the financial transfers coming from and going to these unlicensed websites."
So, it is a right time now to think about other entertaining websites for Belgians, for example penny auction sites.
Peter Naessens, Chief of the Belgian Gaming Commission, reiterated: "After the 1st January, 2012 ISPs will be required to block the access of Belgian citizens to unlicensed internet gambling websites. Belgian banks will also be required to block the financial transfers coming from and going to these unlicensed websites."
So, it is a right time now to think about other entertaining websites for Belgians, for example penny auction sites.
Sunday, November 13, 2011
Social Gaming to top $5 Billion by 2015
In a new report issued by Parks Associates, the firm forecasts that the social gaming industry will increase it’s revenue by five times between 2010 and 2015. The revenue increase is fueled primarily by increased advertising revenues and virtual goods sales. According to Parks Associates, these driving factors have already pushed social gaming revenues north of $1 Billion in 2010, and they see the trend continuing. The research firm presented the findings of their Social Gaming: Market Updates report at the Game Investment Conference in Austin, TX.
“Gaming on social networks has quickly become the most visible category of online games,” said Pietro Macchiarella, Research Analyst, Parks Associates in a statement. “Right now more than 250 million people play games like Zynga’s CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonald’s and 7-Eleven have carried out cross-promotions with existing social games.”
Macchiarella also points to improved user monetization is a factor contributing to the industry’s success. He notes that early entrants to the field missed key monetization and revenue opportunities, but rapid advancements in gameplay has allowed for more effective incentives for users to purchase virtual items. Examples include virtual tractors and seed, items that improve or enhance gameplay, as well as rare items (swords, shields, etc.) to build status.
“Gaming on social networks has quickly become the most visible category of online games,” said Pietro Macchiarella, Research Analyst, Parks Associates in a statement. “Right now more than 250 million people play games like Zynga’s CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonald’s and 7-Eleven have carried out cross-promotions with existing social games.”
Macchiarella also points to improved user monetization is a factor contributing to the industry’s success. He notes that early entrants to the field missed key monetization and revenue opportunities, but rapid advancements in gameplay has allowed for more effective incentives for users to purchase virtual items. Examples include virtual tractors and seed, items that improve or enhance gameplay, as well as rare items (swords, shields, etc.) to build status.
Friday, September 9, 2011
Penny Auction profit
Our customers often ask us: "Can a penny auction business be profitable?"
From our experience we can give an answer: Yes, it can be.
We have seen the following cases.
The iPad went for $202.15. As each bid increments the price by $0.01 it means that Bouncybids got 20,215 bids and earned $12,129 (one bid costs $0.60):
As the retail price of this iPad is about $1,200 the profit is 12,129 – 1,200 = $10,929 USD or 910% !
The Amazon Electronic gift card of $250 value. It was won for $23.32, which means that 2,332 bids were made. 2,332 bids * $0.60 = $1,399 income. $1,399 – $250 = $1,149 profit or 460% !
So, these are good results. And it is a true proof, that when running penny auction business goes step by step and is accompanied by well-organised marketing strategy, it can be profitable and succesful.
Good luck with your penny auction business!
From our experience we can give an answer: Yes, it can be.
We have seen the following cases.
The iPad went for $202.15. As each bid increments the price by $0.01 it means that Bouncybids got 20,215 bids and earned $12,129 (one bid costs $0.60):
As the retail price of this iPad is about $1,200 the profit is 12,129 – 1,200 = $10,929 USD or 910% !
The Amazon Electronic gift card of $250 value. It was won for $23.32, which means that 2,332 bids were made. 2,332 bids * $0.60 = $1,399 income. $1,399 – $250 = $1,149 profit or 460% !
So, these are good results. And it is a true proof, that when running penny auction business goes step by step and is accompanied by well-organised marketing strategy, it can be profitable and succesful.
Good luck with your penny auction business!
Friday, August 5, 2011
Penny auction software - 2 strategies
Customers, who purchase penny auction software from us, often ask us what strategy is better in order to run penny auction business. We can say that there is 2 main strategies:
1) aggressive;
2) step by step.
The first strategy contains significant promotional budget. As auction items are used quite expensive electronic goods, such as computers or gadget and not less than 20 live auctions per day are held.
The second strategy "step by step" characterizes modest expenses on advertising and promotional campaigns. Auction items are the goods at a price from 10 to 50 dollars. The number of live auction are about 2-3 daily or even 2-3 per week. Customers like new small penny auctions because the competition is low initially.
We are convinced, that both these strategies have a right to "live". Even the fact, that aggressive strategy gives an opportunity to make money fast, it containes risk and big initial expenses. That is why, deciding to run penny auction business, think over, what strategy mainly you will choose.
1) aggressive;
2) step by step.
The first strategy contains significant promotional budget. As auction items are used quite expensive electronic goods, such as computers or gadget and not less than 20 live auctions per day are held.
The second strategy "step by step" characterizes modest expenses on advertising and promotional campaigns. Auction items are the goods at a price from 10 to 50 dollars. The number of live auction are about 2-3 daily or even 2-3 per week. Customers like new small penny auctions because the competition is low initially.
We are convinced, that both these strategies have a right to "live". Even the fact, that aggressive strategy gives an opportunity to make money fast, it containes risk and big initial expenses. That is why, deciding to run penny auction business, think over, what strategy mainly you will choose.
Friday, July 1, 2011
Penny auction sites
From time to time our potential customers tell us that their country is saturated with penny auction sites.
We believe, that if penny auction web site is professionally and good made, it will gain much interest even it is not first on the market. Modern attractive design, interesting features together with online advertising give the site more opportunities to be successful.
There are many features, that could attract customers. These are, for example, voting system, that gives a possibility for registered customers to vote on future auctions. Auction items, that gathered the most number of votes, start first.
Customers appreciate when their wishes are taken into consideration. Another not less interesting feature is Higher Lower game. This is for those, who like to try their luck in playing cards. Basically it is a simple card game, but with a possibility to win additional free bids.
Usually customers want much attention for themselves and, for example, everyday quiz may be useful. There the customers can answer question and get free bid(s) for this. Thus they get more satisfaction from their participation.
It is known, that bidders bid against each other and they all want to be ahead of their competitors. In order to know how powerful the competitor is, they need some information. It is possible to use the following - customers can see other customer’s 30-days bidding history. They pay money for this service and get history information.
At the same time exists the ability for the customer to hide his bidding history from others. It makes the competition more passionate.
Such features make a penny auction website more good-looking.
.............. /Natalie Shtangrat, Softmedia international sales manager/
We believe, that if penny auction web site is professionally and good made, it will gain much interest even it is not first on the market. Modern attractive design, interesting features together with online advertising give the site more opportunities to be successful.
There are many features, that could attract customers. These are, for example, voting system, that gives a possibility for registered customers to vote on future auctions. Auction items, that gathered the most number of votes, start first.
Customers appreciate when their wishes are taken into consideration. Another not less interesting feature is Higher Lower game. This is for those, who like to try their luck in playing cards. Basically it is a simple card game, but with a possibility to win additional free bids.
Usually customers want much attention for themselves and, for example, everyday quiz may be useful. There the customers can answer question and get free bid(s) for this. Thus they get more satisfaction from their participation.
It is known, that bidders bid against each other and they all want to be ahead of their competitors. In order to know how powerful the competitor is, they need some information. It is possible to use the following - customers can see other customer’s 30-days bidding history. They pay money for this service and get history information.
At the same time exists the ability for the customer to hide his bidding history from others. It makes the competition more passionate.
Such features make a penny auction website more good-looking.
.............. /Natalie Shtangrat, Softmedia international sales manager/
Wednesday, May 4, 2011
Why seat auctions do not generate an interest?
From time to time our customers inquire from us to deliver seat auction software to them. And then we are using many efforts to persuade them not to order this. After the last conversation we decided to bring our arguments here.
For those who do not know what is seat auction: customers pay fixed entrance fee; when the needed number of participants have paid this “seat” fee, penny auction starts and bidding is free of charge for them.
One of the main reasons is the length of time it takes an auction to get started. So, customers should wait unpredictable period of time till auction starts.
Another important factor seat auctions don't give any success is because there is no instant gratification. Many people start bidding in penny auctions because of the fast action. Within a few minutes (or maximum hours) they will either have won or lost. If a bidder knows he is going to have to wait hours/days (or even weeks) to participate in a seat auction, he is surely losing his interest.
The whole reason why many bidders participate in penny auctions is to relax after a long day of work. And even the fact, that seat auction format does not contain the risk of the customers' losing much money, it does not give much interest.
The more experienced bidders who use auctions to make a profit view seat auctions as a bad investment. As the probabilities of them winning are basically equal with everybody else, the chances for a profit decrease remarkably.
For those who do not know what is seat auction: customers pay fixed entrance fee; when the needed number of participants have paid this “seat” fee, penny auction starts and bidding is free of charge for them.
One of the main reasons is the length of time it takes an auction to get started. So, customers should wait unpredictable period of time till auction starts.
Another important factor seat auctions don't give any success is because there is no instant gratification. Many people start bidding in penny auctions because of the fast action. Within a few minutes (or maximum hours) they will either have won or lost. If a bidder knows he is going to have to wait hours/days (or even weeks) to participate in a seat auction, he is surely losing his interest.
The whole reason why many bidders participate in penny auctions is to relax after a long day of work. And even the fact, that seat auction format does not contain the risk of the customers' losing much money, it does not give much interest.
The more experienced bidders who use auctions to make a profit view seat auctions as a bad investment. As the probabilities of them winning are basically equal with everybody else, the chances for a profit decrease remarkably.
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