RON: It's the same thing with the penny auction on a custom auction website. For example, if there were 100 people bidding on that laptop and a hundred people each bid ten bids to try to win because there's a frenzy going on because it's only going up a penny apiece, you're like, “Heck, I'll bid $0.53, $0.54. I'm only buying it for $0.54. What a great deal,” right? So you're just bidding and bidding and bidding and you got 100 people going crazy and it sells for $12.83 that could be potentially a penny apiece. It's 1200 and 83 bids. And if each of those bids cost a dollar, many auction sites charge $2, then they made either $183 just on the bids and then another twelve, eight, $12.83 for whoever won it. They had to pay that as well. So you have to think about those.
That's a great way to drive a lot of interest, because people like an eCommerce auction, you're like, “Heck yeah, I'll pay $20 to potentially win a $50,000 Corvette." That's exactly that same concept. So it's a fairly telling model and it works well for certain businesses and certain items.
If you have a business like an Overstock.com where you can get overstock items, where you're picking up old, refurbished MacBooks that typically sell for $1500 bucks, you can put it on a penny auction and say, “Win this for pennies on the dollar,” and drive a lot of traffic to eAuction sites, that could be something that might be interesting.
It's really important to marry the number of goods with the auctions and the number of users that can be on the eAuction platform to bid on them, because that's really where you're making the money. You have to make sure you've got a lot of bidders each willing to bid, and then that creates the frenzy. Because if you have 300, 400, 500 people bidding on a $2,000 laptop, hoping to get it for $12, then it makes a big difference. When a thousand people each bid $20, there's $20,000. That's crazy, right, for a $2,000 laptop. So anyway, that's penny auctions.