10 July 2012
It seems that the penny auction industry is in a constant state of flux with new sites opening and old sites closing every week. Most of us in the industry understand that this is largely due to the lack of preparation on the part of penny auction owners prior to launch. Everyone thinks that grabbing a cute domain name and posting a few times in the forum will somehow turn into a million dollar operation to rival Quibids.com.
Of course, this isn't the case. Almost all of these sites are closed before the ink is even dry on the forum posts announcing their big grand openings. So, why are so many of these sites wasting time and effort starting from scratch when there is a laundry listing of sites that have already opened and closed, or that are standing stagnant waiting for rehab?
It would seem that a prudent new penny auction owner should be able to locate a site that has already been established and rejuvenate that site. This would, at first glance save valuable time and money that no longer needs to be spent getting the site "out there". Buying an established site would probably also result in upgraded scripting features that you could pick up at a "fire sale" of sorts. This could save you money over contacting developers to create new and unproven programs, or pricey upgrades.
We have seen a few sites announce new ownership, re-launches and the like. Have they been any more, or less, sucessful than just starting out fresh? That's very hard to tell in todays penny auction world. With the increase of penny auction coupons, sales and discounted bids how does one even begin to track where a sites bottom line really is?
Grabbing a dormant site sure would give you more time to figure out answers to some of these questions and money to spend on site designs, marketing and advertising to give you a head start in this competative industry!