It’s not often that we write about brand new penny auction sites before they launch, unless they are offering something very unique. SharetheSpoils.com is brand new penny auction site, so new that their first auction is ending tomorrow (6/19).
So back to the unique part, SharetheSpoils’ model is so different, not only will there be 1 winner like in a standard penny auction, but 3!
When an auction ends, 50% of the total pot (bids received – minus the purchase price of the item) is equally distributed to the last 3 bidders (which includes the top, winning bidder).
Here’s how SharetheSpoils will “share the spoils:”
Let’s say an item worth $200 takes in a total of 4000 bids, with a final auction price of $40.00, 4,000 bids x $1.00 per bid = $3800 left (minus the $200 cost of the item).
50% of that $3800 is then divided up among the last 3 bidders, including the winner. That’s $1900, divided by 3=$633.33 won, for the last 3 bidders. The winner will actually get less, because the item was sold for $40, so they’ll take the cost of the item out of their winnings – $633.30 – 40 = $593.3. They have a nice illustration of this on their site under “How it Works,” in case you’re interested.
SharetheSpoils will have reserves on some of their items, but even if the reserve has not been met the last 3 bidders will still get a share of the collected bids.
We asked Simeon Schnapper, founder of SharetheSpoils.com a few questions to find out a bit more about this new entertainment shopping site:
What got you interested in penny auctions?
SharetheSpoils: It’s a relatively new space that is still evolving. Its humbling and exciting to be involved an industry where the rules are still being written.
SharetheSpoils is a bit of a twist on the standard one-winner penny auction model.SharetheSpoils: Yes, we have an elegant model that acknowledges the powerful kernel of a traditional penny auction but as you say with “a twist”. This twist encourages social bidding and more.
Will all of your items have reserves?SharetheSpoils: YES and NO. [click to continue…]
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