[summer0102]

Hi everyone!

I recently saw an ad that says that he got a macbook pro for only $107.50. At first, i thought it was only a scam but I was also curious so I check the site. Well, it was an auction site but a bit different from a normal one.

To explain how it works:
--Each bid cost around $0.60. But you have to buy a bid pack beforehand which contains about 50 bids depending on the pack you purchased. So a 100 bid pack cost $60.
--Auction starts at $0.00. But every time you place a bid, the price would increase by $0.02.
--Also, there is a countdown timer, usually starts at 15 sec. Every time a bid is placed the countdown will restart to 15sec. So in order to win the item, you have to be the last bidder when the countdown reach to 0.

For that macbook pro that was sold for only $107.5:
107.5/0.02 =5375 bids
5375 bids * 0.60= 3225 plus the 107.5 the winner have to pay to get the item.
so if a macbook cost around $2000, the site owner get a profit around $1000 for only 1 auction item. And there's like more than 10 auctions every hour.

It seems a very clever business model. And parang gusto kong mag-start ng ganitong online business. So my questions are, what are the things i need to consider in setting up this kind of online business aside from setting up the website and advertisement? Are there any legal requirements or permits that i need to accomplish? How much does it cost to start a business like this? And where can i outsource the products (is amazon okay?)?

Any thoughts and suggestions is greatly appreciated.
Thank you.

[yellowminded]

looks a lot like a raffle (or gambling). Pay $60 for a chance to win a macbook that you still have to pay for. lol. this is really not an auction, in my opinion.

[adam]

as far as their business model.. very lucrative and high potential profits.I myself wanted to start this kind of busines but problem is the resources and capital. You'll have to hire programmers (very important) to be able get the features and important aspects done nicely.