1. Penny Auction Strategy
The Beginner's Guide to Bidding Strategies on Penny Auction
Sites.
By
http://pennyauctionintelligence.com

2. BEGINNING
Before starting to bid on a penny auction site, read, read and read again about it. There are tons of
reviews, blog posts and forum discussions about penny auction sites. Don't be fooled into spending
money on a scam site. Pick a well known and verified site.
Observe for a while, watch the auctions, see who bids regularly, who wins regularly, watch a couple of
auctions until the end. Look at the items they have and their closing prices.
Study the information on the site: what is the win limit, delivery time, do they have a Buy it Now
feature? Do they have an Autobidder? Contact their customer support, ask questions and see how they
respond. This is a good way to check if a site is serious.
Review the closed auction and get to know the bidders. Don't buy bids until you studied the website
first.
BIDDING
Start with small items like gift cards and DVDs, stick to products worth $25 or less.
By bidding and winning small auctions, you will learn the site inside out. You must win a couple of
small auctions before jumping into the big ones.
When going for an auction, be prepared to spend the retail value of the item. Most often you wont have
to, but it is better to have more bids than not enough and watch the auction proceeding to the end.
WINNING
To win, you need a winning strategy, and most importantly, you need to know about your opponent's
strategy.
The key of a winning strategy is being informed. Knowing about past auctions, regular winners and the
amount of bids used to win will greatly help you define a strategy.
The bully bidding strategy (scaring other bidders by bidding non-stop if you have the budget) is a
strategy that is said to work. That is until you get into a bidding war with another power bidder.
Another approach is the lotto bidder strategy: bidding right and left till you win something on pure
luck. We strongly suggest you to use the data analysis on ended auctions offered by
http://pennyauctionintelligence.com.That will give you a great sense on what to expect.

3. Use the Difficulty Index to choose a website to bid on, the higher the index is, the harder it is to win on
this particular site.
The difficulty Index represents the amount spent by bidders VS the retail cost of the item auctioned.
Once you choose your site, you can also choose the item you would like to bid on according to the
Difficulty Index.
Next step is to define the minimum number of bids you are going to use trying to win an auction (Keep
in mind that you should always jump on an auction willing to pay the retail price of the item, specially
on a site featuring the 'Buy it Now' option.) Use the frequency Analysis charts available on
http://pennyauctionintelligence.com
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This is the best insight offered on ended auctions because you can spot trends into bidding habits.
For example frequency the analysis chart above tells you that::
• 80% of this item's auctions are won with 19 Bids and less
• 95% of of this item's are won with 30 Bids and less
You will find many charts like that for items like iPads, bid packs and so on.

4. Once you found your favorite site, winning more auctions should be easier using the difficulty index
and the frequency analysis data.
Another thing to keep in mind is your cost per bid. You have to lower your cost per bid as low as
possible and the only way to do this is by winning Bid Pack auctions with few bids.
Use your bidding strategy on Bid Pack auctions first, to accumulate a large amount of bids without
having to pay the regular bid prices.
Never bid on multiple auctions in the same time, concentrate your bids on one auction at a time and be
consistent.
Last bidding tip is to stick to your bankroll; don't bid on an auction if you don't have the bids to
compete. This is a big mistake and will almost surely leave you broke.
With the data provided by http://pennyauctionintelligence.com you know the products you can go for
according to your bankroll.
That's all for now and feel free to hit up our blog http://pennyauctionintelligence.com/blog for more
articles.
Good luck and happy bidding!