Penny Auction

In a penny auction, site owners control the items up for bids. Just like a traditional offline auction, bids prolong the action by anything from 10 seconds to two minutes. But unlike other auctions, penny auction bids cost money before you can bid, you must buy what amounts to 50 to 100 times the one-penny increment each bid represents. And thats where this business model gets its juice: An unsold item whose current high bid is has already lined the pocket of the site owner by as much as 0,

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