How Penny Auctions Site Such as PisoBid Works


How Penny Auctions Site Such as PisoBid Works

In my quest for financial freedom, I saw that one of the best business models is an internet business. Aside from the fact that most internet businesses are not both capital and inventory-intensive as compared to traditional businesses, they are also very portable which means you can carry it wherever you are in the world as long as there’s an internet connection.

In this article, I will discuss one internet business and I’m referring to penny auctions.

What are Penny Auctions?

Bidding fee auctions or more commonly known as penny auctions are all-pay auctions in which participants will pay a non-refundable fee in the form of bid packs in order for them to place a small incremental bid.

How Penny Auctions Work

Penny auctions work by attracting participants to buy items at very low prices. In order to participate in the auction, a person needs to register an account and purchase bid packs from the auctioneer.

Items being auctioned are put into a timer to give time for bidders to place their bids. When the time expires, the last person to have placed a bid wins the item and also pays the final bid price. Once the final bid price of the item was paid by the winning bidder, then the items will be shipped and the shipping fees are shouldered by the auctioneer.

How Auctioneer in Penny Auctions Profits

Yes, it’s true! You can buy an iPad 2, normally priced at Php25,000 at an incredible price of only Php250 depending on what price the auction ended. That’s 99% discount! That’s just one of the great things about penny auctions but wait… let’s examine how the auctioneer profits from this kind of online business.

An Example from PisoBid

Since PisoBid.com is the most famous penny auction site here in the Philippines, let’s examine how the auctioneer profits despite the incredible low retail prices of their items.

As mentioned above, a participant must purchase bid packs from the auctioneer in order to participate in the penny auction. In PisoBid, there are six bid packs denominations available. The larger the bid packs you buy, the more discount you’ll have in purchasing your bids.

  • P300 worth 10 bids or equivalently, P30 per bid
  • P600 worth 25 bids or equivalently, P24 per bid
  • P900 worth 50 bids or equivalently, P18 per bid
  • P1,000 worth 100 bids or equivalently, P10 per bid
  • P2,000 worth 250 bids or equivalently, P8 per bid
  • P3,000 worth 500 bids or equivalently, P6 per bid

Each bid pushes the price of the item by more than Php0.01 (bid increment) and when the time is about to expire, each bid received will push the timer 10 more seconds to give more time for other bidders to bid. This is perhaps the best feature of a penny auction site! The more bids to the item, the higher the profits of the auctioneer!

Let’s take for example an iPad 2 16GB 3G WiFi which retails at Php28,990 and sold to the highest bidder at only Php245.62.  The price started at zero and bidders bid to win the item.



iPad 2 16GB WiFi 3G
Image Credit: PisoBid.com

Scenario 1: The lowest profit the auctioneer earns

If all bidders bought the Php3,000 worth of bid packs so they can purchase the lowest price per bid of only Php6 per bid, then the auctioneer earns:

-> The total bids rendered are 245.62 divided by 0.01 (bid increment) equals 24,562 bids. Now since each bid costs Php6, then we must multiply it by 6 equating to Php147,372. Since the wining bidder will also pay the final price of the item, then he or she must pay the final price of P245.62. All in all, the auctioneer earns Php147,372 plus Php245.62 equating to Php147,617.62. Compare this amount to the original retail price of only Php28,990, the auctioneer profited 409.2%, the minimum profit for this item.

Scenario 2: The highest profit the auctioneer earns

If you’re amazed on scenario 1, wait until you see scenario 2. If all bidders bought the most expensive bid, the Php300 bid pack which retails at Php30 per bid, then the auctioneer earns:

-> As in scenario 1, the total bids rendered are 245.62 divided by 0.01 (bid increment) equals 24,562 bids. Now since each bid costs Php30, then we must multiply it by Php30 equating to Php736,860. Once again, since the wining bidder will also pay the final price of the item, then he or she must pay the final price of P245.62. All in all, in this scenario, the auctioneer earns Php736,860 plus Php245.62 equating to Php737,105.62. Compare this amount to the original retail price of only Php28,990, the auctioneer profited 2,442.6%, the highest possible profit for this item.

Of course, not all bidders will buy the same set of bid packs. Some will buy Php1,000 while others will buy Php600. The bottom line is, in the item that we just examined, the auctioneer profited somewhere in between 409.2% to a maximum of 2,442.6%. This is just for one item alone. How much more if the auctioneer offers a lot more items for bidders to bid? Now, that’s what you call a great online business!

Tips to Smartly Bid in Penny Auction Sites

– As in any game, you must be aware of the terms and conditions before bidding. Read these materials to better understand how the auction works especially since this involves a non-refundable money that you spent on bidding.

– Create a threshold of how much you can spend on these auction sites. By doing so, you can control your spending habits and be able to avoid overspending. Do not buy bids more than you can actually afford.

– The best thing to do in order to win the item you’re bidding is to monitor the bid price of it and this involves a lot of time especially if the penny auction site has attracted lot of bidders already. If you are really determined to win the item, then be ready to spend a lot of time monitoring the movement of the bid price.

– Read forums and blogs for feedbacks on these penny auction sites before you participate. Penny auction sites can be manipulated. One scenario can be that the auctioneer themselves create fictitious accounts to bid for the item in order to increase the price. Another scenario can be that a group of people can form a team to bid in the item. Make sure also that items that are won are indeed shipped and received by the winning bidders.

Now that you’ve now how profitable penny auction sites are, if you are planning to start your own penny auction site, the best way to make it successful is by marketing it to attract more bidders. The more participants in the auction, the better profits for you. Having known how penny auction works, the one who conceptualized this online business is surely a genius!


Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

26 responses on “How Penny Auctions Site Such as PisoBid Works

  1. One contributing factor on the success of the site was through social network,e.g. Facebook

    Though it’s a simplified “gambling”, many were attracted because of word of mouth like John Doe get his iPad2 for just 250 PHP or something similar…and the word goes on from one person to another. Some even signed up out of curiosity and having free 5 bids…why not try, but still…I think “sugal” pa rin yun.

  2. Just wanted to point out that it’s not always the case that PisoBid wins in the auction. There are many cases also when items are won far below the retail price. It really depends on the number of bidders actively participating in an item. Below are recent examples of items that are won far below the retail price:

    http://pisobid.com/Auctions/Sony-Playstation-3-Slim-160GB/2421
    http://pisobid.com/Auctions/Beauty-Secrets-LipoCavitation/2489
    http://pisobid.com/Auctions/Burberry-Brit-Perfume/2487

  3. I have to agree with JG! I made a background check in Pisobid when it was just starting. I made a long list of items that I think lugi ang Pisobid. It really depends on the interest of the people. Kung they dont want it, they will not bid for it. Pag gusto naman nila, eh hanggang sa huli ipaglalaban talaga.

    In contrast sa sinasabi ng iba na scam daw ito. Well I think Pisobid is not a scam. Nagresearch po ako mabuti sa Pisobid. Magjojoin sana ako kaso wala talagang time.

    First of all, members should know that this is a business and not a charity organization. Members should play in order to get the item that they want.
    As for bots, i really know when there is one. Have you seen the new auction site called bidrepublic.ph? Dito maraming bots. Umaabot hanggang 500 pesos ang price eh tapos ang bilis pa.

    Also, Pisobid has been in the online business since May and everyday they are giving lots of items. I think the items they have given has totaled to 2000+.

    And lastly, I know that fortdan023 guy and I heard he was banned together with other bidders. Well, you should know that this fortdan guys has been sucking dry the other piso auction site called Bilibid and not only him, he got his wife and his friends playing in the site. It is clear that team play is tolerated there.

  4. “It is a fact that Pisobid.com is now one of the coolest site in the Philippines.

    My Pisobid experience started out slow (thought it was another scam site). But after I participated in the bidding process(which is pretty exciting), I later understand how it really works.

    Since their launch, My interest on Pisobid rocketed all because of their amazingly super discounted items and the excitement that it gives me. For more than a month now, they have auctioned hundreds of products ranging from Smartphones, DSLR Cameras, Macbook, Gift Certificates and more with 40,000+ Facebook followers. Amazing!

    For the benefit of those who doesn’t know about this awesome site. Pisobid is just like an auction. Item starts at 1.00 and .01cents will be added up everytime someone bids for the product. The last highest bidder will get the item.

    If one has a question about the website (e.g. How to register?, Where to Buy Bidpacks and etc) Pisobid’s customer support are always on stand by to help newcomers for their issues and concerns.

    Pisobid has offered their members the excitement of bidding and the chance of getting an amazing shopping opportunity in the convenience of your home!

    A little tip for those who want to join Pisobid: Be observant and strategize. Observe the site first and make a strategy before placing your bid. Know the elements of the webpage to avoid wasting your bids. By the way, you will have 5 free bids upon registration. Awesome right?”

  5. Hi Guys!

    Sino sa inyo ang sumali na sa Pisobid.com? Just bought my bidpacks but I have no time to participate in the bidding.

    Grabe ang ini auction nila na mga gadgets. Merong mga apple products,samsung,mga gift checks na less 99% ang mga prices.

    Walang halong biro. I think Pisobid generates its income from the bidders who buy bidpacks. It became popular soon after its release. Meron din silang ina upload na mga videos sa kanilang mga winner to prove na walang daya involve at dinideliver talaga yung item. Meron din silang stand by na support for their members sa facebook, twitter and email if you have questions and inquiries. And one thing for sure, Pisobid is not a scam. Andami ng testimonies kasi.

    I just want to share the goodnews with you Guys!

    Salamat!

  6. I think hindi na po ito isang scam. As of today, nakapost naman po ang mga kailangan information about the company.

    PisoBid Corp. (TIN# 008-050-213-000)

    14th Floor Picadilly Star Building, 4th Avenue Corner 27th Street, Bonifacio Global City Taguig City, 1608

    Email Support: support[at]pisobid.com
    (Weekdays, 10am to 5pm)

    Phone Support: 02 552 1872
    (Weekdays, 1pm to 5pm)

    And sa pagkaka alam ko andami na pong mga winners and andami na ring items na ibinigay. Check nyo po ang winners block nila. Aprub!

  7. Hello guys! We were invited by PisoBid for a Press Event last Tuesday with some of the PBA Stars. They told us about what PisoBid is and how it works. They were backed up with clearance and registrations naman and for sure they are not a SCAM.

    Yes, there is money involve. Money is at stake. So before joining you should be aware about that and should not only think about the awesome gadgets and items. You should be aware of everything so read the mechanics carefully.

    That way, no money will be of waste and everything will be good and without regrets.

    For sure, PisoBid is not a scam. They are a fully cleared and registered business in the Philippines.

  8. This is a very interesting article. I also tried the PisoBid.com and I even bought 1k bid pack but I haven’t won any. I read a lot of tips from the net and maybe I’ll win next time. I am skeptical with this until I win in the future. I also saw BiliBid.com and it seems mas konti player dito kaya hopefully mas madaling manalo. 🙂 I also found PinoyBidShot.com referred by a friend who won there an itouch. Bago lang yung site pero nakita ko in actual yung item na napanalunan nya. Siguro, greater chance of winning dito dahil konti pa lang bidders dito. This are just my opinion.. share nyo naman experiences nyo because I am still new sa mga ganto. 🙂

  9. I salute pisobid for making a tagalog version of their HOW IT WORKS section. Mas madaling maintindihan ang mga instructions and mechanics sa game mas ok na yun.

    Style ko kasi mag wait na lang ng mga discounted bid packs na ipinagbibili sa main site. Minsan less than 1000 pesos ang difference. Sa mga gustong bumili check niyo lang sa site.

    Dun sa mga tao na hindi pa rin naniniwala na legit ang pisobid. Try niyo na lang mag visit sa http://www.pisobidwinners.blogspot.com

  10. I think PisoBid is the best site to play your money. Played with Bilibid but I think ako lang ang piniperahan nila. Played with panalo.ph but halata naman ang mga bots nila. Played with BidangBidder but nawala agad, meron pa akong natira na bids.

    While here in PisoBid, I won Samsung digicam and a couple of GC. Tapos newbie lang ako nun when I won the items. Sarap ng feeling.

  11. i found a very nice penny auction site panalo.ph im really happy with this site cause i won a slimmers world gc and started recommending it to some of my friends and they also ending up winning gc!!! and we saw our face on their facebook page its really funny but exciting…i think this site has an easy access plus its not very crowded so its easy for you to win items and the gadgets are amazing..i surely recommend this site!!! the penny auction web site its worth the risk…

  12. sa una lang yan scam.. once na marami nang bidders di na nila kailangang mang scam pa.. ang goal lang nila eh sumikat ung site at dumami ang bidders.. what a con artist

  13. its a form of gambling… people bid and the winner takes all including their bids… mathematically speaking, luge ang natalong bidders who lost the bid due naubusan ng bid… and there are times na triple kita ng piso bid.

    -01 ang increase, eh 9 pesos gasta mo per bid… not totally a scam depende na lng sa gustong sumali…

    timer resets>>> no limit on resets… hope they limit it to when it reaches atleast 20% profit… to cover for some items na luge…

    galing eh… kung mahilig ka sa sugal, dito ka na

  14. Kahit sang tingnang aspeto sugal pa din yan pisobid.. 🙂

    May mga ilan lang ako na napansin dito kay pisobid:

    1. Yung mga member walang profile, what I mean is my i se2arch ako na member na nanalo, or yung mga friends ko na kasali sa pisobid. Pwede sabihin ni pisobid na for security reason but my question is anung katibayan yung pwedeng ibigay ni piso bid? account name lng? or picture lng? wala manlang feedback ung nanalo at ung muntik manalo, hehe

    2. Pisobid use bot? I my opinion yes, why? Simply because walang profile ung mga member, very simple. next is kung kakaunti ung bider for sure maba2ng presyo lng ung item, lugi ngeon si pisobid, kea for sure my bot yan.

  15. Maybe we can say its a gamble to play on Pisobid but on the other hand, gumagable din ang Pisobid sa mga inu-auction nila. Hindi naman kasi sure na mababawi nila ang cost ng item.

    Maybe hindi sila gumagawa ng profile ng kanilang mga bidders for security reasons. Meron kasing ibang bidders na hindi gusto malaman kung saan sila nakatira or ilan na ang panalo nila. That way iwas confusion at violation para sa iba.

    Sa bots naman.. I think wala naman.. Kung meron man, sana ginamit nila sa mga items na hindi sila nakabawi.

    Kung bidder ka talaga ng isa sa mga auction site, malalaman mo naman kung merong cheating na nangyayari.

  16. Hi! Here’s another scoop of news from the banned pisobid players.

    http://www.youtube.com/watch?v=u2f7eYvPxhs&feature=relmfu
    http://www.youtube.com/watch?v=AtePRBs0lwg&feature=relmfu
    http://www.youtube.com/watch?v=h2T2UFxJsVU&feature=relmfu
    http://www.youtube.com/watch?v=HLZQKQTQGoQ&feature=relmfu

    Youtube videos po yan about sa kalokohan na ginagawa ng mga heavyweight bidders sa BILIBID. Ngayon? Magtatanong pa kaya sila kung bakit sila natanggal sa Pisobid?

    Lalong lalo na si papa888 pa as if na hindi nandadaya eh siya pa siguro ang gumawa ng group account na ito. TSK3x.

    Beware from these bidders:

    hush28
    papa888
    fortdan023
    huggieboi
    hunter357
    prettyhazel
    joycewin

    siguro mas marami pa. Kaya nag close ang BILIBID dahil sa mga swapang na mga taong ito.

  17. Swertebid is still new and not so many players, I’ve won 4 Times in one week for less then 5 pesos each time… The site has a Facebook account which shows the pics of the actual winners. I heard they might be having Phantom of the opera tickets up tobid real soon!

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