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”.
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