Sunday, September 21, 2014

Q and A on Penny Auction Software no. 60

Q. What social networks best work for communicating with Penny Auction customers?

A. Thank you for good question. As penny auction business is B2C business (business-to-consumer), social networks are very important for communication with the customers.

We would like to underline very important point - the communication should be human, not automatic.
We bring an example - if you send email to somebody with the words "I love you" - your correspondence partner will be impressed.
If you write a computer program, which sends every hour an email with the same text - you will be just a spammer.

The networks.

1. Definitely, Facebook is no. 1. Be active, be friend with your customers, gather more Likes, and Like their pages.
Facebook you cannot use for paid advertising about your auction website (they do not like penny auctions), but you can promote, for example, your offline events. Do that. Do not forget that penny auction is an ENTERTAINMENT shopping.
Do not post to often - 2-3 times per week is acceptable frequency.

2. Twitter is good for more frequent posting of short messages - 1 per day is OK. Use it definitely.

3. Google+ is raising popularity, it is also good for SEO (search engine optimization).

4. Learn about popular social networks in your region. For example, if you work in Latin America - use also Badoo.
Orkut - Google’s previous attempt at a social network - is still popular in Brazil,

5. Do not forget about YouTube - your channel could be popular, if you have some events what to show.

Monday, September 1, 2014

Q and A on Penny Auction Software no. 59

Q. What strategies have you’ve seen that have failed in this business?


  • Use of automatic fake (bot) bidders;
  • Self-bidding;
  • Misleading advertising;
  • Paid sign up;
  • Any other tricks with customers;
  • Launch without initial advertising;
  • Starting active auctions without users who bought bid packages;
  • Providing all auctions with reserved price, e.g. without any risk for auctioneer;
  • Providing very cheap, not interesting products;
  • Absent social media marketing;
  • Absent full company legal and contact information at the website;
  • Absent chat and phone call possibility at the website;
  • Slow delivery;
  • To Be Continued...

Sunday, August 24, 2014

Q and A on Penny Auction Software no. 58

Q. What type of products is most popular and attractive to customers on Penny Auction websites?

A. We usually recommend to mix expensive products with cheaper ones. For moderate start it is enough to have one expensive product a day, other products could be gift cards, bid packages, discount and bonus coupons, not expensive services.

You can put attention to the games at your website also. In many countries, like USA and Australia, online gambling is prohibited. But if you have online casino games at your penny auction website, where customers can win bids only, the games cannot be deemed as a gambling, because the prize is not money, but just the right to participate in the online auction. 

Wednesday, August 6, 2014

Q and A on Penny Auction Software no. 57

Q. What type of media outlets are best to advertise to reach out to potential penny auction clients? Please list in order of best to least.

  1. Existing customers' database. Do not hesitate to try to co-operate with existing websites, for example daily deals' providers, or providers of e-mail databases/direct mail service providers.
  2. Social media, but, unfortunately, Facebook doesn't accept penny auctions' ad.
  3. Banner advertising at popular portals, like, for example, online classifieds.
  4. PPC (Pay-Per-Click) advertising, like Google Adwords, however competition is pretty big
  5. Advertising at websites and forums, popular among penny auction lovers -,, etc.
  6. Offline ad - radio, TV, outdoor ad. As it is much more expensive than online ad, think about co-operation with your suppliers.

Sunday, July 6, 2014

Q and A on Penny Auction Software no. 56

Q. What type of audience is most likely to shop on a Penny Auction website?

A. If we are discussing who is the target group of penny auctions, it is necessary to bear in mind the following:
  1. Penny auction is an online service;
  2. Penny auction is a shopping;
  3. Penny auction - it's fun;
  4. Participation in the auction takes significant time.
  5. The auction winner receives the goods with big discount. 
So, we must answer the following questions: 
  • Who likes shopping? 
  • Who are forced to prefer online shopping, and online entertainment? 
  • Who likes to buy products with a discount? 
When we answer these questions, we find out who are the most likely audience for penny auctions.

Friday, June 20, 2014

Q and A on Penny Auction Software no. 55

Q.: We are a merchandising company and would like to use a classic auction website for distributing our goods.  Is it good?

A.: We recommend using classic auction when you have very exclusive or unique goods, for example, paintings.

For general popular articles we recommend penny auction with “Buy Now” option, because such a website is a combination between online entertainment and regular e-shopping.

For making such website even more attractive you may use the option “Buy Now with Discount”, which makes a potential loss of your customers smaller, but your turnover much bigger.

Some experts expressed the view that for being 100% legal, penny auction MUST have the option “Buy Now with Discount” with 100% compensation of used bids, but we have not heard that this would be confirmed by any legal document or court decision

Sunday, May 4, 2014

Q and A on Penny Auction Software no. 54

Q. Are the invoices, provided by your software to end-users, with all taxes?

A. Usually penny auction website does not send any invoices to end-users because of two main reasons:

  • customers are private persons, usually they do not need invoices/bills;
  • after any payment the customers receive email and usually bill from payment processing provider.

If the invoice still must be provided, we have optional software module "Payment Documents". It gives an ability to customer to print the invoice directly from "My Account" section at your penny auction website.
Again, private persons in EU do not get VAT or sales taxes back from the state, so the taxes do not need to be shown.

If your client definitely want that taxes should be shown, please order that option and show us how the invoice should look like with all needed taxes. We will calculate the amount of additional development, if any.

Sunday, April 13, 2014

Q and A on Penny Auction Software no. 53

Q. I require the software for auctions.

A. We offer several auction system models from the functional point of view, and the most popular ones are the following:

1) Classic auction model (mostly used for selling/distributing goods):
  • bidding is usually free;
  • the price increment after each bid is relatively high;
  • in some cases the price increment is the value defined by the auctioneer; in other cases the bidder can give his or her own auction price;
  • every bid may extend the auction time for some period;
  • the auction ends when its time is over and there are no more bids; the last bidder has an obligation to pay the final price and the delivery/processing fee.

2) Penny auction model (mostly used for entertainment auctions):
  • bidding is usually not for free (Pay-Per-Bid model);
  • the price increment is usually 1 cent (1 penny);
  • every bid extends the auction time for a short period (restarts timer);
  • the auction ends when its time is over and there are no more bidders; the last bidder has an obligation to pay the final price (relatively low) and the delivery/processing fee, but auctioneer revenue also includes bids purchased and spent by all bidders.

Saturday, March 22, 2014

Q and A on Penny Auction Software no. 52

Q. We want to add a new payment processing gateway to our penny auction software. Could you install any?

A. We can install any payment gateway which is suitable for penny auction. It means, that the gateway should give answer immediately - was the transaction successful, or not. Not after 8 or 24 hours.

We recommend you send the email below to the payment processing provider prior to ordering setup from us:


Our website is a so-called penny auction website, or in other words a pay-per-bid online auction website.
We have 5 questions for you:

  1. Do you allow websites of this nature to use your payment gateway? 
  2. Is your payment processing instant? In other words, how fast will the website get a response regarding whether the credit card payment/transaction was successful or not? 
  3. Is it possible to get test credit card data from you to test the installation? 
  4. Is it possible to get technical documentation for developers in English? 
  5. Do you have any acceptance processes after the gateway is installed on the website? If so, what do they include – technical approval only or also approval of the business model in whole? 

Sunday, March 9, 2014

Q and A on Penny Auction Software no. 51

Q. Hello,

We are developing an idea to give a return to the system of sales through penny auctions.

It would be possible to create a marketplace, with two modes of sale, bid a penny and direct sale. Credits should be free and only will pay the last bidder, those who do not earn do not pay (being free only the winner should pay the final price).

It would have to differentiate from penny auctions auctions, in some auctions would raise penny to penny, in others of 0.10€ to 0.10€, in others of 0.50€ to 0.50€ or 1€ to 1, for example.

We believe that it is possible to develop this idea with the current our penny auction software. Do you see it feasible?

A. Hello,

Your idea seems like classic, traditional auction.

You can have such auction with our additional module #101 "Classic auction". Please see how it works at our demo: 

Regarding synergy with Bidyear.
We doubt in this because these types of auction have totally different purpose:
Penny auction is online entertainment.
Classic auction is for selling goods.

If you want to add something to Bidyear, try to add entertainment:
casino games;
unique lowest bid auction;
reverse x-price auction.