We know that there are a lot of misconceptions of penny auction bidders, especially when your family, friends, and society simply do not understand what you do. Heck, sometimes you don't even understand what you do!

Here at PennyBurners, we "get it".

If you are a penny auction bidder, or if you're looking to learn more about penny auctions, PennyBurners is the place to be! We have a fun, vibrant forum, a live chat room, a live radio show, penny auction reviews, promos, news and more! It's FREE and EASY to join! :-)

A few weeks ago, one of our valued members and well-known bidder, uanjum, posted a very simple comment in response to all of the drama that has occurred in the industry: "I remember when bidding was bidding." When we saw this comment, we approached uanjum and asked if he would mind elaborating on his sentence in a Feature Guest Post for PennyBurners. Thankfully, he happily obliged.

I remember the days when all I did was buy some bids and bid, and not have to worry about bots, shills, jumpers, accusations, collusion tactics and threats. These days, the majority of bidders have narrowed down the number of sites they bid on simply for those reasons.

An honest site is becoming harder to find. It has since been narrowed down to very few, whereas a year or two ago, it was an easy task. There were several sites that were honest, with no shills.  These days, the shilling sites have gotten smart by letting you win some auctions (but sometimes or always over retail) and then they SHIP FAST! Pretty smart tactic if you ask me. But the majority of the time, a bidder catches on and calls the site out. The site either does not reply or gives pathetic excuses. And it is very hard to prove that sites shill even when several bidders claim they do. I think it is a shame that 7 out of the last 11 sites I have tried in the last 6 months used shills. It is no surprise to me even the most powerful bidders have narrowed down the number of sites they bid on. Some have even retired. Is this what the penny auction industry has come to? Will it go back to the good ole days?

Another thing that has started to plague regular bidders are other bidders, “typically newer bidders”, using collusion as a tactic to take down a more powerful bidder. Even though most of the time this is unsuccessful. What’s the point of doing it then?

Of course, one more thing is the unwritten rule of tagging. For those who do not know yet, tagging means being the person who is first to bid on an auction. By implementing this strategy, one has a higher chance of winning the auction. But, just because an auction is "tagged" does not mean the first person to tag the auction owns the auction. Any and every bidder has the right to bid if they choose too. Bidders sometimes consider the second bid or third bid as "jumping", when in reality it really is not.

Everyone has their own idea of what jumping truly is. I personally think it is when a bidder joins in after the top bidders have reached 20% of the retail value. Again, everyone has his or her own opinion. Now, I am not going to say a bidder can’t join in late in an auction because they have every right to bid whenever they want. But in all honestly it wont help you in the long run, especially if you are doing this against a reputable bidder.

With that said, you simply cant call someone a jumper or ask him or her why they didn't respect your tag or bid, if they show interest from the beginning of the auction. I know several bidders are dealing with this problem almost daily. Will it stop?

I think for these reasons, and many others, the penny auction industry is slowly dying little by little. This is sad but true, in my opinion. Do you think the industry is dying? Or will it go back to the days when bidding was bidding?

Of course, there are still great sites out there that don’t shill and are very honest. There are bidders who never jump or call others jumpers. There are bidders who do not collude or make threats towards other bidders. This is also why the industry is still alive and kicking, and maybe, just maybe, it and we can make a comeback. 

PennyBurners wishes to thank uanjum for such an insightful post and for contributing to this growing community. We appreciate you!

What do you think, everyone?

Will the industry simply crumple to dust and blow away on the wind?

Can we revive the industry and restore it to its former glory?

How can we change the penny auction industry for the better?

Please feel free to share your thoughts and opinions with us on the PennyBurners Penny Auction Forum. If you are not yet a member, it is FREE and EASY to join, and there are thousands of other bidders and site owners waiting to chat with you :-)

We've been receiving emails, messages, phone calls, and forum posts from discouraged and jaded bidders, who are thinking of "retiring" from the penny auction community. Lately, it seems we've seen an increase in sites that ship slowly, do not ship at all, or that close up shop and simply disappear without a trace. When this happens, bidders are left with empty bank accounts and nothing to show for it. They are then faced with the arduous task of trying to track their money down.

Penny auction burnout can happen to anyone.

Thankfully, there are still several penny auction sites that abide by their own Terms & Conditions and who comply with the FTC’s Prompt Delivery Rules. It is important to support these already-existing sites, and to remember that they will only stay open with your continued business and support.

We've watched a horrible cycle over the years, of bidders rushing off to join brand new penny auction sites without first waiting for reviews to trickle in, or to observe the site for a couple of weeks. Many bidders do this in the hopes of snagging a cheap win while competition is low. You certainly can't blame them for this. Unfortunately, many of the smaller penny auction sites that open still have the misconception that this industry is "easy" to enter and do not plan for long-term success. Those overly-eager bidders are then left in the lurch when the site eventually stops shipping and closes, forcing their customers to swallow their losses, which can often be in the hundreds of dollars.

There has been much chatter throughout the community about the longevity and viability of the industry. In the future, there may indeed be fewer entertainment auction sites, but it is our hope that the ones who remain are the ones who have always done right by their customers and who have shown an unwavering commitment to transparency and excellence.

How can you support legitimate penny auction sites?

1. The most obvious answer is - give them your business!

2. Spread the word! Leave reviews for them at places like PennyBurners, Facebook, and Twitter. Your reviews help other potential customers determine the legitimacy of site.

3. Let them know what they're doing right - and what they're doing wrong. They can only understand what needs to improve or what is working if they receive honest, constructive feedback.

How can you avoid common penny auction pitfalls?

1. Upon discovering a new penny auction site, study it. Search for reviews. Are their Terms & Conditions sufficient? Do they have more than just a $200 script? Did you learn about them through a reliable source?

2. Be patient. If you do decide to take a risk and invest in a brand new site, don't just keep bidding-bidding-bidding. Bid on a few things, win a few things, then sit back and wait for them to arrive. If they arrive within the expected timeframe, if everything still seems on the "up-and-up" with the site, then extend your trust -and finances- a little further.

3. If you do discover that a site is not abiding by their Terms & Conditions or the FTC's Prompt Delivery Rules, file a complaint with the FTC, BBB, and the local Attorney General. Leave reviews on PennyBurners, Facebook, etc. Note: Complaints do have their place in the industry, but should only be made for legitimate reasons, and not because you did not win an auction or because you are mad at the site or its bidders.

How can you revive your penny auction interest?

1. Keep it fun. Ignore the drama, social pressure, and sites that are too risky with slow shipping.

2. Start back slowly. Things change, bidders change, rules change... Take your time to read up on the changes and ease in slowly.

3. Avoid the common areas that cause stress in the industry. These can be new sites with no information, established sites with slow shipping, sites without proper win limits that are too difficult to win, and sites that require too much effort to win items which are not worth the fight.

Are you suffering from penny auction burnout? Thinking of taking a break? Where do you think the industry will be a year from now? What needs to change/improve?

Share your thoughts with thousands of other penny auction fans on the PennyBurners Penny Auction Forum! It's FREE and EASY to join!

PennyBurners strives to keep its finger on the pulse of the penny auction industry. By doing so, we have a number of "alerts" set up to monitor any important news or happenings on which we can report to our member base. Usually these alerts consist of recent penny auction promos or the announcement of a new site, but over the past several months, we have noticed a disturbing trend. Pseudo-news/informational site, KingOfHowTo.com, has launched a concentrated attack against the penny auction industry. Dozens of penny auction sites, many of which we know to be legitimate, have come under fire and have been labeled as scams.

We've been monitoring KingOfHowTo.com, and it is clear that they seek to profit from their vitriol by flooding the internet with fake, derogatory news/review articles. None of their articles have any reasonable claims or information, and each new one is just a regurgitation of the next. We have been seeking to find out just who is really behind that site, and we hope to reveal that information at a later date.

With that said, the following guest blog post was sent in to us by PennyGrab.com, a trusted penny auction site, in a response to a blog article on KingOfHowTo.com that is labeling their site a scam. Read on!

In the modern world, it’s been said that a shouted lie can travel the globe 30 times before the truth has a chance to whisper.

Another idiom: “The problem with the internet is that it’s impossible to verify an opinion.” -Abraham Lincoln

While we all love the internet, in ways it can betray the fruits of peoples hard labor. A person can be Ghandi, work hard, do the right thing with all of the right intentions… and one person can bring ”them” down utilizing a false press release for nothing more than (hoping) to earn a profit as a pseudo journalist writing fake reviews and articles in hopes of making a few cents. This is also known in the legal world as libel.

Recently, an article was posted on one such website [KingofHowTo.com]. A website that’s been in business for barely a year no less. This “article” was defamatory in nature while insinuating various businesses are fraudulent by the nature of the business they are in. This not only detrimental to the buying public buy distributing false information, in the guise of “news”, solely for the intent of profit… regardless of the veracity of the statements being made.

In the article I am expressly speaking of, an entire industry is lumped together, seemingly, as one entity in the opening paragraph by saying “…some deceitful companies are trying to take advantage of your desire…. one relatively new penny auction site called PennyGrab.com issued a press release promoting itself as a leader in customer service and quality prizes” and then goes on to state, without quote, without a verifiable source that some “people” are already beginning to complain about PennyGrab.com.

Let’s be absolutely clear: Not one time does the “author” (a term I am using as loosely as possible) state “who” is making complaints, nor does “she” specify what a person or persons would be complaining about. She is simply making a blanket statement based on no proof, information or standing with which to make such a statement. In other words, it is a lie and libel.

The article then goes on to state that while some of our competitors such as DealDash and QuiBids use TV ads and “online marketing tactics”, PennyGrab is using our newest way to earn “free Bonus Credits” as a way to “lure in” new customers, to a Penny Auction market “most” do not understand.

She actually used the term “less savvy” which we can only presume is ”her” attempt at calling people “stupid”.

In fact, our Penny Punt [game] announcement was the PennyGrab way of letting our Members know that we’ll be giving “them” new and more ways to earn free bonus credits as well as informing them that there will be a lot more fun and innovative ways to win, earn Bonus Credits as well as just have some relaxing fun playing our video games.

While it is true that there have been many a scam website in the Penny Auction world, the author makes no attempt to be genuine in her writing, “fact checking” or accusations. As an example, she goes on to state that “Some have accused sites like PennyGrab.com of using automated bots to make fake bids”.

Who has? I dare say that PennyGrab, among the 4 leading Penny Auction websites, has the absolute BEST customer service record of anyone. So to make such a libelous statement, claiming that we’re cheating using bots or in ANY manner, without notation, quotes, names or even an example of an allegation. She then goes on to say that we’re not being ”straightforward” with our customers.

Again, “who” have we not been straightforward with? In what manner? What is your evidence to libel PennyGrab in such a manner?

The author then goes on a tangent about the BBB (Better Business Bureau) stating that we’re not accredited with the BBB and that our ”accreditation has been revoked” because we failed to honor our agreement.

What agreement, you may ask? Allow me to explain; The BBB is a COMPANY that is out to make money. Most do not know this, but the BBB is not a govt. entity of any type. They charge each and every business $600 per year to be able to reply, respond or address any complaints a person has made with a business on the BBB website. If your business does not ”pay”, your business is simply marked with a ding… a negative report that the company has absolutely no control over nor can the company address.

I could literally go to BBB right now and complain that Ford Motor Company sold me a sick Zebra and refused to honor the warranty and if Ford isn’t a BBB Member, then Ford cannot respond to such an outrageous accusation. Yes, it really is this stupid!

Further down, the author then contends that we “only” have a C- rating on the BBB. If we’re “so great”, then how could our rating only b a C-? Looking at the BBB website, it states it’s because we’ve “BBB Accreditation was revoked because business failed to honor its accreditation agreement with BBB” which is the BBB’s attempt at bullying us (and millions of other small business owners) into paying their $600/yr extortion fee by stating that we’ve not honored our agreement.

[As of 4/23/2012 PennyGrab's BBB status is now back to being accredited and has an A- rating].

As a matter of fact, the BBB then goes on to say that: No complaints filed with BBB. The BBB has sufficient background information on this business.

Does this sound like a scam? No complaints & they have sufficient background information on Pennygrab; The BBB is only upset that we’ve not paid them a “play nice” fee of $600.

Don’t take my word for it, here’s the link so you can see for yourself:

http://www.la.bbb.org/business-reviews/Internet-Auction-Service/Pennygrab-Inc-in-Huntington-Beach-CA-100106934

In a nutshell, we all here at PennyGrab work very hard in not only running a company, but in ensuring our Members are happy, treated fairly? but more importantly, we strive day in and day out to “do the right thing” for each and every person; be they a Member or not. Our Members can speak for themselves and in the satisfaction they get being a part of the PennyGrab.com team.

You can always ask them directly by joining our chat room that is available to anyone, whether they are an active, paying member with us or not.”