Dealfun.com Review is it a Scam
Personally I’m not a fan of the penny auction model in my personal opinion it just to much of a gamble. That being said in my opinion if I’m gambling it should be for money and not for merchandise that I can buy at a retail outlet or even eBay for less. Another thing I’d like to point out is the fact that dealfun.com and all other websites like it shouldn’t be called penny auctions nothing on these websites are being sold for pennies the penny in regards to dealfun.com could have easily been called a point or a credit. Furthermore in order to participate in dealfun.com a person first needs enter their credit card information and purchase a bid pack.
As low as ¢0.35 per bid
As much as I don’t like penny auction website I must give credit where credit is due and say that Dealfun.com has one of the lowest cost per bid prices in the penny auction industry. If you purchase their ‘Huge 340 bids’ package you will only pay ¢35 cents per bid which is pretty good considering the average price per bid placed using penny auction websites is ¢0.60 cents. None the less what this may also mean is more competition and more people willing to risk more bids on items which may or may not drive up the price of the goods being sold on dealfun.com
Possible example of the cash flow at dealfun.com:
If an item is sold for $40 on dealfun the reality is that 4000 ‘1 cent bids’ were placed meaning that at a minimum each person spent ¢0.35 to place a bid in this instance the real winner is Dealfun.com who may have banked$1400 on a single item. For the record yes I’m aware of their free credits for signing up but you have to also factor in the people who are purchasing lower priced bid packs at 0.60 cents per bid placed
For the record I’ve never seen nor do I know how much money/profit dealfun.com makes per auction.
Understanding the Penny Auction model and how it differs from eBay
In simple terms at eBay as a buyer you only pay if you win an auction, also at eBay a person can also make money as a seller/vendor. Penny auctions don’t work like this, First of all an online penny auction is actually an online store that is selling items. The vendor or seller in this case is dealfun.com, another thing you have to pay attention to is that it costs money to enter into the deal fun store. The price to enter into their store at the date I’m writing this can cost a person depending on their location anywhere from $69 – $119 usd. For the record the date in which I’m writing this post is August 2011 so depending on when you’re reading this, things may have or may not have changed at dealfun.com. I also recommend that people read their terms and conditions before signing up with them or giving their credit cards to them.
Do I think dealfun.com is scam? My final thoughts
If dealfun.com is not delivering their goods or services to their members than they’re a scam if they are than in my opinion they’re not a scam. Just because dealfun.com has used the penny auction marketing gimmick doesn’t make it a scam. Even if they’ve installed bots into their system and/or have people on their website driving up the prices in bid wars I still would not consider dealfun.com a scam. Now for the record I don’t think they would do this but I’m letting the reader now that even if they we’re it still wouldn’t make them a scam. Again it’s important that you read their terms and conditions before you sign up.
When you enter into someone’s store or go onto their property you must abide by their rules, even when you go to casino the owners have the right to kick you out of their establishment for no reason whatsoever now obviously this would be bad for business but it’s the owners right and it’s important that you understand that before signing up. All that being said on a positive note dealfun.com has some decent bid prices and if you’re interested in giving them a try I think you should. My position on all penny auctions is for consumers to stay away unless they just want to have good time!
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