[widgeon13]

Thanks for taking the time to explain. Think I'll stay away.

These types of auction sites have been popping up more frequently lately.



The 1st one that I recall and posted about here is Swoopo.



Basically what happens is you buy bid packs in bulk, 10, 20, 30, 40 etc...



Each bid costs you money so for arguments sake let's say they are $1 a piece.



Each bid on an item increases the cost by 10 cents, (or 1 cent in a penny auction).



Now lets take a retail item like an iPad. Again keeping it simple let's assume the retail cost is $500.



Bidding starts at 10 cents. 2,000 people bid on it so the winning price is $200.



Assume you are the winning bidder and you bid 10x's. You got an iPad for $210.



But there were $2,000 in bids so the auction company just made $2,000-$500+$210= $1,750.