We often receive e-mails from readers wondering whether this or that penny auction site is an awesome way to kill time and get cheap iPads, or a scam. Back in 2009, we looked at Swoopo, and penny auction sites have proliferated since then. The sites differ somewhat, but the business model is always the same, with users placing prepaid bids, and the auction site collecting far more from all of the bids than the retail value of the item. It’s like a very lucrative, for-profit raffle. [More]
