How’d You Like to Bid on Some Money?

The online auction is nothing new. If you’re looking to score a deal on a new Nintendo Wii or maybe a used digital camera, heading to a place like eBay isn’t such a bad idea.

One of the newer developments in recent years is the penny auction, giving you the opportunity to buy an iPod for pennies on the dollar. Quite literally.

Taking a slightly different approach to this concept is Bid on Cash, the website that serves as the subject of today’s review. As its name implies, you actually bid on cash prizes.

Getting into the Game

Getting started with Bid on Cash is a very quick and painless process. First, you’ll need to fill out the user registration form, which really only asks for a username, email address, and password.

From there, you’ll need to confirm your email address and you’re pretty much ready to go. There is a section to fill out the rest of your personal profile, but you don’t have to do this right away. You will, however, need to spend a little cash to buy some bids.

So, How Does It Work?

In case you’re not familiar with the penny auction system, you need to buy bids (a dollar each) that you can subsequently spend on the various auctions. Each time that a new bid is placed on a prize, the cost of the auction goes up by a penny and the countdown timer goes up for a set amount of time.

As you can imagine, the auction ends when the timer runs out. The key, then, is to get in the last bid, hoping that no one else puts down another bid after you. The difference with Bid on Cash is that you are, well, bidding on a cash prize of varying value.

The prizes seem to start at $30 on the low end, all the way up to about $400 on the high end. If you figure that each dollar spent on a bid results in one extra penny in the value of the auction, then Bid on Cash needs to get at least 30 bids ($0.30 value) to break even on a $30 auction.

Look at the list of closed auctions, it seems that they’re currently falling pretty far behind on that goal. Most auctions are ending at below the break-even mark; I saw a $100 auction end at 11 cents. In effect, Bid on Cash lost $89 there, not including the other costs involved in running the site.

BidJames is Your Automated Sniper

While you could spend hours on end staring at the main page of Bid on Cash, eyeing the auctions that are soon drawing to a close, you can set up an automated solution instead. That solution is called BidJames.

This virtual assistant, so to speak, will automatically bid on the auctions on your behalf. You activate his services, tell him the bid range and the number of bids to use, and he’ll do the rest. As you can imagine, you can burn through the bids pretty quickly using a system like this.

Getting Extra Free Bids

You can buy additional bids for the site in packs of 20, 30, 50, or 100, but there is no incentive to buy the larger bundles. It always works out to a dollar a bid and, from a business standpoint, I recommend Bid on Cash provide more of an incentive to “players” to buy the larger bundles.

If you don’t want to buy more bids, you can earn some free bids by referring your friends. When someone signs up and buys a bid package using a referral link, you get 10 free bids and the referral gets one free bid.

The Penny Auction for Cash

You probably shouldn’t expect to get rich from Bid on Cash. It can be a fun game, perhaps, but it can get very expensive at a dollar a bid. Also, like all the other penny auctions on the Internet, you do run into the possibility of fraud and deceit. I received five free bids to do this review and, well, I was always outbid. I saw others win auctions at much lower totals.


33 thoughts on “How’d You Like to Bid on Some Money?”

  1. This is really interesting. Wonder how this will work out, most people probably will lose money over making it though, so it all works out for them! 🙂

    Also, first 🙂

  2. Steven says:

    Looks like another Swoopo only instead of items, its cash.

    1. Michael Kwan says:

      Basically, yes. It’s the penny auction system.

      1. It can be dangerously expensive if you get in over your head with auction bidding. I’ve seen some people get screwed on these penny auctions before.

  3. Rhys Davies says:

    I saw a comment on another blog somewhere about the profit that these type of sites make. He was the marketing director (I think). Hundreds of thousands worth of dollars are made each month.

    A good niche to get in to.

    1. It’s a hard niche to get into though because without serious traffic you can really lose your butt.

      Jonathan Volk wrote something about this same site a few weeks ago. They are doing the smart thing and getting lots of advertisement via review in the MMO niche.

      Cool idea, but without the money to build the traffic it probably fails pretty bad.

      1. Rhys Davies says:

        Ah, Yes. It was on Jonathon’s blog that I saw the commenter.

      2. Wynne says:

        So that’s all you need to make this model work – lot’s of traffic?

        1. I suspect a lot of startup cash helps too.

  4. Diabetis says:

    this s the frist time I have heard of such thing.

    Haven’t you tried it yet?

  5. Mathew Day says:

    Cool little site. Might try it out whenever I have a little free time during work.:)

  6. I hope they allow to sell our bid number so every one can make money trough it. 😀

  7. Tim says:

    I had found this site a couple of weeks ago and watched it throughout the day. It seemed there were really only a couple of players involved outdueling each other and then occassionally a new player would pop in and bid. Got me to wondering if any admins are on the backend pushing bids. Not saying they are; but how do you really trust any site in this market? There’s no way in hell they’re going to allow themselves to lose considerable amounts of money. And I wondered how many of those who won $30 for $0.11 worked for the site.

    Again, not making accusations, but can you ever really be sure?

    1. Rhys Davies says:

      Being a lurker on some “Blackhat” forums, where site owners of these sites hang out… yes some site owners do have there own bidding bots.

      If you check some of the brand new “bid on whatever” sites, you will see nearly every single auction is making a loss.

      Well, it would be a loss if the winner wasn’t a bot. If they only make $3 per auction, before there own bot wins. They can turn a massive profit each month.

    2. Good point. They could just have an admin push the latest bid until some ‘reserve’ point. That would explain why John kept getting outbid.

  8. interesting john…though i hav heared first time about this. …

  9. Free Picks says:

    is it world wide? or only for American? i have seen such kind of bidding on TV too

  10. Michael says:

    I have a feeling it might be something weird with those lower ending bids at $0.11. Since they don’t got much traffic or not enough bids. They always outbid the users so they don’t have to actually give those money out. So they get free money. Scandalous.

  11. Yup its like swoopo. Didnt’t like the fact that you had to “buy” credits to bid on Swoopo. If you bid up on an auction and don’t win, you lose money.

  12. It’s like eBay only you bid on money!Isn’t that so awesome.

    1. Free Picks says:

      but you can not get cheap like this on eBay, is in it?

  13. I made over $120 already, but they don’t pay to paypal, but they’re working on it, because there was a problem with it. A bit suspicious, but we’ll see.

  14. Aaron Koo says:

    Hypothetical question but if you were to try and get one of these running, what would be a decent amount of start up money to begin with, compared to the profitability? Domain, advertisement, web design, programming…

    1. Probably about $10,000. Most of that would be platform development.

  15. Jay says:

    I had no idea that something like this even existed. It does kind of seem like an Ebay though, like someone else mentioned.

  16. I am by nature wary of these type of games, and rather prefer to spend my energy on other avenues of revenue earning. There are always way more losers than winners with this kind of thing, and transparency is a great issue to me.

    1. Very true. You might as well be playing blackjack in Vegas – which is probably much more fair.

  17. Soares says:

    I agree with some people that comment,I prefer to spend my time in something that its more “worthy” of my effort.

    Some of this websites are scams im not saying this is so be carefull.

  18. Wess Stewart says:

    I believe I’ll stick with ebay. You know, you can buy money on there as well…in gold form! Personally, I see that as a far better investment than a bid package…

  19. I have seen these websites before. Thought it is a great idea for making money. I think buyers are willing to through down good money without realizing it.

  20. Looks alot like gambling to me. I’m no fan of giving away money.

  21. Freebird says:

    It’s just a form of gambling. You might win a bit but in the end you will lose.

  22. I had no idea that something like this even existed. anyways thanks for this post john 🙂

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