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Month: September 2010

The Truth Behind Penny Auction Websites

Penny Auction Sites like SwoopoGift Cards for a Penny, or Bid Cactus are a new internet phenomenon where the price for the item only increases one penny for each bid. It is not uncommon for a HD Television valued at $1,000 to sell for around $50 or $60. So how does this work?

Penny auction sites make money by making you purchase a bid before you can try to win an item. Bids cost anywhere from $.50 – $1.00 for each depending on what site you use and how many you buy at one time. There is usually a bulk discount.

The numbers behind Penny Auction Websites

So for this example let’s pretend we’re using Swoopo where bids cost around $.60 each. A Canon Digital Camera up for auction retails for around $500, and  ends up selling for $62.34. The sales price of $62.43 really equals 6,243 bids. Those 6,243 bids cost $.60 each, so 6,243 x .60 =   $3745.80. This means Swoopo just generated $3245.80 profit from one single item.

So who really wins?

There are two winners at penny auction websites. The winner every time is the house, which never actually loses. No matter what item they sell, they’re making an obscene amount of profit from it. The second winner is whoever actually won the auction, because they’re getting a premium item at a minimum price. Everyone else in between is a loser, because you’ve just wasted money (bids) and time.

Is it worth playing?

It’s definitely worth joining in the newest internet phenomenon and engaging in some entertainment shopping. You might score a really good deal, but then again you might not. It’s important to realize your limits and play within them. I recommend that you devise your own strategy on how to win penny auctions and follow it.

Thinking of starting your own website?

Think again. Penny auction websites are easy to create and there’s even a script on the web that Swoopo uses for around $15. But, like gift card exchange websites, they’re easy to start but even more difficult to maintain. If you look at the gift card exchange resource list over at Gift Card Advocate, you’ll notice all of the businesses that have started and since then closed down. It’s going to take a significant financial investment

BidCactus – Strategy to Win Gift Cards is one of the most popular penny auction sites on the web. At Bid Cactus, you can win brand new products for up to 95% off the retail price. So if you win a $100 gift card for $5 and then sell it to Gift Card Rescue for $90; you’ve made 18 times your investment! Now that’s a great return that everyone would like to see.

BidCactus is one of the best penny auction websites to use for making money and selling gift cards, because they usually have more for auction then their competition at Swoopo and Beezid. Want to know the right strategy to winning penny auctions at BidCactus? Read more after the jump.

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Swoopo Review and Strategy

Swoopo is the first penny auction bidding site, where users bid just a penny at a time to win extravagant items such as HD televisions, laptop computers, and gift cards. You can win a $500 gift card for less than a hundred bucks! Swoopo is the original penny auction website and is accredited by the Better Business Bureau. You can make money on Swoopo by selling the gift cards for cash.

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Walmart Gift Card Contest

We currently have the Facebook 5K Fan Contest ongoing and we’re sitting around 1,800 fans at the time of this post. If we can get to 2,000 fans on our Facebook Page by the end of this week, (Friday at 5PM) we will give away another $100 Walmart Gift Card.

The Walmart gift card is great, because you can use it on anything you could possibly want including, groceries, clothing, video games, or home furnishings.

Trust us, we want to give away this gift card to one of our community members, but we will need your help. Just tell your friends about Gift Card Rescue through your Facebook, Twitter, Skype, Email or whatever means you can! We’ll do a random drawing this Friday to determine a winner if we hit the 2k mark. If you haven’t joined Gift Card Rescue on Facebook yet, doing so will also enter you to win a Kodak Digital Camera or Asus Netbook.

Good luck to everyone and hopefully we hit 2,000 fans!

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Gift Card Exchange for Amazon Credit

Did you know GiftCardRescue allows you to exchange gift cards for Amazon credit? Yes, you can trade in your gift card and get an credit emailed to you.

With the holiday season fast approaching, you are probably beginning to think about holiday budget and shopping. One of the ways to put extra cash in your pocket is to sell gift cards you don’t have any use for. And rather than waiting for a check to be mailed to you, you can select to receive an credit, which then can be used immediately to shop on

In case you don’t already know, gift cards never expire and can be used to purchase millions of items at including Books, Electronics, Music, DVDs, Software, Apparel, Toys, and much more.

To learn more about our Gift Card Swap for Amazon credits process, click here.

Also, you can watch this short video that walks you through the process.

Bulk Gift Cards Discount

Are you a small business with a rewards program for your customers or employees? Are you looking for ways to save money on your rewards program? can help. We sell discounted gift cards to over 300 popular brands for up to 30% off.

Call our Bulk Gift Cards Department at 1-877-904-3822 (M-F 9AM to 5PM EST) or email us at and we will be happy to help. We can share with you what kind of inventory we have in stock and how often we get certain cards in bulk, so that you know when to buy in bulk. Learn more about our Bulk Gift Cards program us by visiting our website at

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