Online auctions have been a staple of the interwebs for about 15 years now (eBay anyone?).  People are always on the lookout for getting stuff cheap.  So it's no wonder that penny auctions have proliferated in the last few years.  What are penny auctions?

Penny auctions work a little differently than a traditional auction. For instance, traditionally on eBay and auction may go for a few days, say 5.  The person with the highest bid when the clock runs out is the winner. As a bidder, there are no upfront costs.  And you are only out-of-pocket for the price of the winning bid and usually shipping costs. With penny auctions, you pay upfront for your bids.  For instance, with calls them credits. Credits cost $0.60 cents each and each credit is worth 1 bid. Credits are used to place bids on auctions. So if you buy 10 credits, you can bid 10 times.  Now here is where it gets interesting: Every bid increases the price of the item by 0.01. The timer counts down until a bid is placed. Each bid adds 15 seconds to the clock giving bidders a chance to make a final bid. Much like going once, going twice in real life auctions.

Why would someone bid in these types of auctions? Because if you win, you can buy items pennies on the dollar, in most cases, up to 85% off the retail price! So if you are looking forward to owning a new iPad, laptop or digital camera, give penny auctions a try.  After all, it's only pennies...

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