Dealdash is Not a Scam!

Some people still come to our website looking for an answer to the question: “Is Dealdash a scam?” As the title of this article suggests, we have no doubt that Dealdash is not a scam. But to stay on point, those searching this keyphrase generally fall into two categories:

  1. Never played on Dealdash. They arrive to our site and see the very low prices at which items sell for on Dealdash and immediately jump to the conclusion,”It must be a scam!”
  2. Played a few Dealdash auctions, but didn’t win. These individuals bought their first bid pack, played a few auctions, and assumed they should have one right away. Like the first group, they also conclude, “It must be a scam!”

Neither of these are accurate

Let me state the obvious: Not winning your first few Dealdash auctions doesn’t mean it’s a scam. In fact, most people don’t win the first auctions they play. Yes, it does happen, but it’s the exception rather than rule. This is my opinion based on years of experience with penny auctions. It’s only natural to want to win, right away. Unfortunately, penny auction play takes some practice and the action can be faster than many people anticipate. In order to see past the emotions of not winning immediately, a full picture of how Dealdash works should help to ease your fears of being scammed. The first thing to remember about Dealdash (or any penny auction) is:

A player must pay to play

Sounds like a simple concept, but many seem to forget this point. Let’s say you show up at a Dealdash auction for a new iPad, the auction price is $0.00 & there are only 5 seconds left on the auction…and you want to place a bid.  Your bid only increases the “current price” of the auction by a single penny, making the new selling price: $0.01.  It also resets the timer of the auction back to 10 seconds.  Lastly, and probably most importantly, you have to pay to place that bid.  The cost of bids on Dealdash comes out to roughly $0.15 per bid.  So you pay $0.15 to place your bid, which only ever increases the bid of the auction by a single cent.

Let’s take a deeper look

to make even more sense of things.  You arrive at an auction for an iPad that’s current selling price is $90.00, and the auction ends with no new bidders (as an auction can only end if nobody places a bid during the last 10 seconds of the auction, as any bid within the last 10 seconds resets the auction timer to 10 seconds again).

If the price of an auction is $90.00 and each bid only increases the auction price by $0.01, that means 9,000 bids were placed on that auction.  If each bid placed costs $0.15, we have to multiply those two figures together.  So $0.15 x 9,000 = $1,350.  So while the winning bidder only has to pay the auction price (and whatever they spent on each of the bids they placed) Dealdash is actually getting $1,350 in revenue for that iPad.

Now that we’ve covered those individuals who “Never Played on Dealdash,” let’s move on to the second group; those who have “Played a few Dealdash auctions, but didn’t win.”

No one player wins every Dealdash auction

Yeah, this is pretty obvious from an intellectual perspective. However, emotions can convince us otherwise. The exhilaration one feels after winning their first penny auction is light years away from the frustration felt when losing an auction that you were financially and emotionally attached to. Although no player likes to lose, some take it harder than others. Some even begin to cast blame on the auction site: “I spent money, and I don’t get anything for it!” – see what we’re saying?

Some of players on Dealdash are referred to as “power bidders.” These folks bid all day every day.  Some spend over $100k each year! Bid-Ninja’s color coding system within Analytics makes it easy to spot power-bidders and differentiate them from newbies, intermediate level, and so on.

Jumping into an auction, placing $5 or $10 worth of bids and then hoping to win is not going to cut it, especially if you’re bidding long before the item you’re bidding on typically sells for. But, if you combine good penny auction strategies, a sufficient amount of bids in your account, and discipline, you can be successful on Dealdash. There’s a reason why so many people play on the website. The answer is that many different bidders win auctions on Dealdash. Think about it, if only a few bidders ever won auctions then eventually every other player would leave.

The point is, we understand that emotionally it’s tempting to blame Dealdash or collusion between players (that’s a whole separate topic) and take to the web to search for others who may feel similarly “scammed.” On the internet, you can find people who purport to have been scammed by Dealdash. Many of those are clearly acting out emotionally and searching for someone to blame because they didn’t win. Perhaps instead, they should try to think objectively to understand how they can change strategies or tactics to win more auctions.

The Bottom Line

Dealdash is not a scam. Yes, one might argue that Bid-Ninja has an interest in declaring Dealdash is not a scam. Although we acknowledge the inherent conflict, we truly believe in the legitimacy of most penny auctions sites (Dealdash being one of these). It was this confidence that first led us to become penny auction players then to create a helpful tool to compile, store, and display bids in a user-friendly interface – for ourselves! It wasn’t until after we realized just how much more efficiently we placed bids (armed with stats & analytics the tool provided) that we decided to share the tool with others. That tool we created is now known as Bid-Ninja.

Bid-Ninja confidently states: Dealdash is not a scam!