Have you heard of Bidder’s Paradise? Or should I say, have you tried bidding on this penny auction? Have you even tried to buy bids? If so you’ve already given this site over $1k…
The site is Bp8.hk, yeah, it’s not even a dot com, but word seems to be spreading…
A penny auction owner I’ve spoken with, told me about Bidder’s Paradise and said he had been invited through a friend of a friend, of a friend (you know how that goes), to attend a meeting in California that was presented by someone who claimed to be making money by multi-level marketing for Bidder’s Paradise.
From what he could gather, the company’s multi-level marketing set up is geared towards low-income, limited English speaking people. The approach is very much a “get rich quick” scheme. The weirdest thing about it, he says, was the 24 year old presenter, who claimed to be making $16,000 a month, in a room with 100 people, a lot of people have questions – so he said, if you have any questions to come up after and ask him individually. Why wouldn’t they just allow open questions since everyone probably had the same questions?
The business model seems to be very similar to that of Zeekler’s. NOTE: Zeekler was shut down by the Securities and Exchange Commission back in 2012 and deemed a ponzi scheme. For more on this see Zeekler MLM Penny Auction Just Shut Down, Is Under Investigation by SEC and Secret Services. Except Zeekler’s appeal was your own subdomain – as if you were your own business owner, but in the case of Bidder’s Paradise you’re just a bidder promoting the site.
The homepage has text in both Chinese and English, and as you will see, high-valued designer products up for bid. The currency is in HK dollars, but what interests me is that there is a US connection.
Let’s start out by taking a look at the PowerPoint presentation that this Hong Kong company is using to seemingly recruit US “marketers… to what? Well, we’ll get there.
First of all, what really struck me as interesting is the following sentence found on the first page of the PowerPoint:
“PLEASE – NO RECORDING DEVICES OF ANY KIND ARE ALLOWED DURING THIS PRESENTATION”
So why don’t they want they want the presentation recorded?
Who is Better Living, Bp8, Bidder’s Paradise?
According to the PowerPoint:
“Better-Living Global Marketing is a subsidiary of MSP Power Marketing, a holding company
based in Hong Kong which manufactures an environmentally safe machine lubricant for cars, trucks, boats, military vehicles, etc. MSP was founded by Mr. Luke Teng.”
“Bidders’ Paradise auctions luxury, name brand items such as Rolex, Cartier, Omega, Louis Vuitton, Gucci, Burberry, Apple iPads, iPhones and Samsung products as well as other high-end electronics and luxury goods”
According to the penny auction owner who went to the meeting:
“1. They are a network marketing company.
2. The shell company they operate under is Better Living
3. You can only buy one bid pack in cash at a value of near $1200 for 2000 bids.
4. It’s a cash only business
5. Their payouts are extremely confusing if you’re comparing it to any normal, legitimate network marketing company.
6. Their website doesn’t work. Purchasing bids or even registering on their website will not work.
7. The only way to get involved with the website is by actually knowing someone who is involved.
8. In the meeting, 80% of the people appeared to not be fluent in English.
9. If you win a product somehow, you have to pick it up yourself in a store and show the person who brought you in. At that point you will be reimbursed in cash. At that point, you can choose to keep the item or return it so you can get double value for the product you won.
11. They are primarily targeting individuals with low income, low education or no education who are located in Southern California. They market by word of mouth. They do this by having some people in the organization stating to earn $16,000/month.
12. If you look at their website, all “winners” are in the room, taking a picture of the same products they won, and all stand behind the same Better Living banner.”
Interesting, right? You can’t buy bids online? You have to buy them through a multi-level marketer and your wins aren’t shipped, you have to go to a store?
You must be willing to drop a hefty chunk of change if you want to try and win any of their items. The only bid pack you can buy has to be purchased in advance and costs $1,175.
“You must purchase bids in advance in order to participate. One bid costs $0.58 cents (USD) and bids are sold in 2,000 bid packages called a Unit. Each unit costs $1,175 including a $15 annual fee.
Don’t forget their reminder posted below the cost:
“Purchase units responsibly. DO NOT purchase more than you can afford to lose.”
Oh yeah, because we all just have $1,175 laying around to bid on a site we haven’t even tried before. Right! Real smart…
“When people see an item that they’re interested in winning, they begin to bid on that item. Bidding begins at about 10% of Hong Kong retail and becomes an active auction the second someone places the first bid.
A reverse timer is set at 20 seconds. Once the first bid is placed, the clock begins a countdown from 20, 19, 18, 17 etc…and every time a bid is placed, the price of the item increases by one penny and resets the clock back to 20 seconds. This process repeats until the clock hits zero. The auction can last minutes or even days depending
on how many people are bidding on the item... ”
Ok, so it’s almost like a standard penny auction, at least the way the timers are set.
A Surprise Prize? Ok I guess this is kind of like a mystery/reserve auction…
“The last person to place a bid becomes the winner once the clock runs down to zero or when the “surprise price” is reached. The “surprise price” is a price set by the company that is less than 50% of the retail price, so you always get an excellent deal. Whenever that price is reached, the person that lands on that magic number wins the auction. Otherwise, the win goes to the last person who places a bid before the clock hits zero.”
Who is to know that these items EVER end and anyone ever wins them? Where does the money go if no one hits the mystery price?
Now, in an effort to get people to participate in their “business” model, look what they say…
“When choosing to participate with a Penny Auction platform or any company for that matter, whether you’re a bidding customer or an affiliate, you want to be confident that the company will be around for the long term.
So, it’s imperative that the company makes money and is profitable. Let’s look at an example of how Better Living
Global Marketing makes money.
So now, on the next slide, the company makes claim to selling a Louis Vuitton handbag and generating a profit of $36k.
Here, we have a Louis Vuitton purse. The retail price is $1,665, but it sold at the Bidders’ Paradise auction for $793.24. The bidding began at $165. That means at one penny
per bid, 62,824 bids were placed ($793.24 -$165=$628.24 x 100 penny bids per dollar = 62,824 bids). At $0.58 per bid, that equals a whopping profit of $36,438 on that one Louis Vuitton purse.”
Hmm? Yeah? I’d like to see that one..
Now here’s where it gets even more interesting…
“Not only does the company benefit from the profits of the item auctioned, but the company shares a majority of those profits with its bidders.”
The Major Ways to Earn
• Business Volume Bonus
20% is Distributed on Every Unit You Sell
Each unit sells for $1,160
$1,160 x 18% = $208.80 – Your Bonus earned
Available to You THE NEXT DAY!
$1,160 x 2% = $23.20 to you r-Wallet –
A 2% Bonus Funded by BLGM
Available for of Bid Units Repurchase Only
On the bottom of the page, “THIS IS FOR ILLUSTRATION PURPOSES ONLY AND NO SPECIFIC INCOME IS GUARANTEED OR IMPLIED.
So if I’m reading this correctly… They’re trying to get users to sell bid packs to others and it seems they’re promising a “retail bonus” that works like this: Each bid pack (“unit”) sells for $1,160 = an 18% bonus earned to the user as commission, or as a bonus, available to the user who referred a user the next day. They’re not clear as to if the bonus is a bid bonus or money, as then they state a 2% bonus is funded by them to your wallet. Available for bid units repurchase only? So does this mean after the first bidpack of $1160 is bought by a new user the referring user won’t make a bonus until the referred buys subsequent bid packs? Beats me, but either way, in text below this (with a messy line striking-through the sentence), “This is for illustration purposes only and no specific income is guaranteed or implied.” Um, so does this mean you may not make any money for referred anyone?
The presentation then goes on to explain other tiered bonuses:
3% is Distributed on Every Unit Sold
•Manager – 1-3 Levels
•Director – 4 Levels
•Vice President – 5 Levels
$1,160 x 2.7% = $31.32 – Your Bonus
Earned Available to You THE NEXT DAY!
$240 – Level 1
$ 31 – Level 2
$ 31 – Level 3
* This is for illustration purposes only and no specific income is guaranteed or implied.
$1,160 x .3% = $3.48 Bonus to Your rWallet Funded by BLGM and Available for Repurchase Only”
Think you can’t understand that they’re saying so far, it gets better…Retirement? $31,695 a month income potential? A kid is already making $16k a month? Really?
2 x 12 Public/Private Global Matrix
4 5 6 7 Someday, if all 12 Levels are
filled with 8,190 Units, your
Matrix has the potential to
receive a retirement of
Do you see a pyramid?
YOUR ONLY QUESTIONS SHOULD BE – HOW MANY UNITS CAN I ACTIVATE TO START MY BUSINESS?
WHAT DO I HAVE TO DO TO MAKE IT HAPPEN ?”
Too bad I have way more questions than that, let’s see if they can answer them…..
2319 1313Reseller:Registrant Contact Information:Holder English Name (It should be the same as your legal name on your HKID card or other
relevant documents): LUKE TENG
Holder Chinese Name:
Domain Name Commencement Date: 22-07-2012
Expiry Date: 22-07-2018
Re-registration Status: Complete
Account Name: HK3367741TTechnical Contact Information:
Given Name: LUKE
Family name: TENG
Company Name: LUKE TENG
OK, so now, hopefully your head doesn’t hurt after you’ve tried to read some of their slides. Let’s just take a look at this site from a penny auction bidder and business perspective.
Penny auction site BiddersParadise as found on BP8.HK – displays currency in USD and Hong Kong Time on top.
“Bidders’ Paradise (www.bp8.hk)” has a unique vision. We did not create Penny Auction, rather, we revolutionized it and brought it to the highest possible level ever. Unlike other competitors, we not only offer mid-ranged consumers products in large quantities to increase your success rate, we also specialized in pushing out high-end luxurious products to enhance competitiveness as well as popularity.”
To date, as far as we can see by going into the site’s ended auction pages, they show 1,113 pages of ended auctions. With handful of the same “luxury” items ending multiple times… Louis Vuitton, Gucci handbags, Samsung smartphone, iPads, iPhones, MacBooks, Rolex watches, “profit sharing auctions” Like the Rolex Submariner with an end price of $2,178.78 – minus the $0.10 starting price, that means the auction took in 21,786.8 bids. Wow? Really?
Apparently that’s what their winner’s showcase page is for.
The winners page is filled with images of people stated to be winners just for the month of November. Notice how all of them are at what seems to be the Bidder’s Paradise “Better-Living Global Marketing” Offices holding up their “wins.” Wins include many iPads, smartphones, cameras and a few handbag. Wondering if they provide transportation to their offices which seem to be in Hong Kong in order to get their bidders there to take these monthly winner photos.
What’s really curious is the message of warning posted on their homepage:
“Despite our polite reminders given to Members not to use “non-natural means” to place bids, situation has not improved but, on the contrary, deteriorating.
BLGM members are noble and live honorable lives. They understand that the profit-sharing pay-outs alone, not to mention the lucrative marketing bonuses, are a good source of income. Trying, still, to get advantages from the auctions demeans themselves.
This is to announce, with immediate effect, any behavior to our suspicion at the auctions will bring about serious consequences. Without prior warning, the suspects’ bp8.hk accounts will immediately be locked. Should our actions be further neglected, say, suspects still using other accounts of theirs to continue such low-life behavior, ALL their accounts, including their blgm.hk memberships, will just be terminated with NO appeal.”
According to the A MLM Skeptic Blog, “Since Zeek [Zeeker.com/ZeekRewards] went bust, multiple “profit-sharing” MLMs / Ponzi schemes have left the US hoping to find a safe haven for their fraud.”
So what do you think? Is this a legit penny auction site and a legitimate way to make money online? Does it make any sense to you? Do you think they really have auctioned off over 1000 pages of auctions? Why are all of the images of “winners” taken in their offices presumed to be in Hong Kong?
Discuss this and all penny auction sites with us in our penny auction forum!