What is a Penny Auction Script?
A Penny auction script or an online bidding platform script allows users to bid small amounts of money incrementally, among other users within a specified time limit and once the final bid is reached at the last minute, the user who with the highest asking price wins the bid and is allowed to purchase the product.
What happens behind the scenes of this Crypto enabled Penny Auction script?
It's quite simple. Let's see how this powerful crypto enabled penny auction script works.
- The online bidding platform uses its own cryptocurrency to place bids, to make it easier to explain, let's call them Bid Tokens
( You can have your own Tokens as these bid tokens. You can create them in just a few clicks here )
- As a user, you would need to purchase Bid Tokens that would be used to place bids for each product you intend to purchase by winning the bid. Assuming you want 100 Bid tokens and each is priced at $0.75, you would deposit $75 to get them in the wallet that you hold on the platform.
- The site administrator adds a product for the bidding, sets a minimum amount to start the bidding and then sets a time limit for each of the product.
- When the user finds the product they are interested in, they see the minimum amount to bid and place a bid above the amount mentioned.
- Once a new bidder places a bid, their bidding price gets updated as the new minimum amount. The last person to make the bid just before the bid expires wins the product.
Note: This script also comes with an AUTO BIDDER ( AB ). Users can just set the AB to automatically bid on your behalf until a certain limit is reached.
IMPORTANT: It is not mandatory to always have a CRYPTO TOKEN integrated for purchasing bids. This incredible script also allows you to collect FIAT money ( USD, EURO etc. ) from your users for buying bids.
How do you make money using this Crypto enabled penny auction script?
As an administrator of this amazing Penny auction script, you stand to make money through these revenue channels mentioned below.
Token Purchase - To bid on the platform, users would need to purchase cryptocurrency tokens to use the platform. You can price these tokens based on your requirement & the economics of it. This is an excellent way to sell your crypto tokens to the masses. As users spend FIAT money to acquire your tokens, it will start gaining real value ( and will also show up in volumes on sites like ETHERSCAN, CoinmarketCap etc. ). Showing these volumes as proof, you can also list your tokens in leading exchanges. The real beauty is how the dynamics work. Say for example, you have created 10,000 tokens and each token cost is $1. So, when all your tokens are sold, you have $10,000 in hand and 0 tokens. Now, as people use the tokens to bid > You keep getting back the tokens. In the end you will be left with $10,000 in hand and also all the 10,000 tokens!!
Bid Pools - Bids are placed by a group/pool of interested users. When multiple people place bids for each product, the amount would be more than the value of the product and only one person will win the product. The tokens that were used to bid for the product will be returned back to the platform.
( Tip: Usually what Penny auction sites do is…. They are also a bidder for each of the product. To make sure, the bids are live constantly, more people keep bidding, and the product gets sold only after the owner of the site makes his profit ).
Product sales - At the end of the day, you are selling a product, you can price it to ensure that you make a profit on every product that is won on the platform.
Advertisement revenue - You can display Google Ads or any other ads you want on each of the product page and site-wide landing pages to earn revenue from these ad networks by just driving traffic to your site. Even a visitor who isn't bidding actively bidding on the platform, helps you generate revenue.
Shipping Fee (Optional) - This is an optional revenue channel, should you choose to charge for shipping, you can partner with trustworthy shipping networks to ensure seamless product delivery and you could earn affiliate revenue as well.
Increase in Token Price - Eventually, as more users start using the platform, the price of the tokens could increase based on the demand and other factors involved.
Memberships (Upcoming) - You will be able to charge multi-tiered memberships to everyone who wishes to sign up on the platform.
What are some of the upcoming features of the blockchain powered Penny Auction script?
A. I powered Recommendation Engine - Platforms like Amazon, etc use recommendations engine to show users what they may like and most often the user may buy something that is being recommended. An AI-powered recommendations engine would allow your users to see products that are coming up for bidding or is already being bid, based on the user's activity on your site.
Multi-Tier membership - We're planning to create a sophisticated membership module with complete control over the tier and benefits that you offer on the platform for regular, high volume bidder and others. This would encourage users signups.
.............. and many other features.