What is "the Scandinavian auction - a new business model or a new scam?

What is "the Scandinavian auction - a new business model or a new scam? "Unique bid auction - this type of auction in which the product or service being sold at a minimal cost (eg, 1 ruble). Bidders make bets with fixed step (eg, 25 kopecks) ... The winner is the party who made the last bet! " - Inscription on the front page of Scandinavian auction.

Once appeared in September 2008, the first seen by me, Scandinavian auction, considered it "a lottery scam" almost 100% of those about him something he heard. Passed from mouth to mouth, more precisely, from site to site, that guys sell doroguschuyu technique for only one ruble, and it can not be a normal commercial firm, but a lottery scam. That is the information I heard and when I first learned about the Scandinavian auctions on Runetovskom space.

He sold when goods (smart phones, digital cameras, monitors, game consoles) with a maximum of 20% of the selling price. The people believed. Two months later (November 2008) the number of hungry almost for free to buy gadgets and ... increased prices began to rise. A time during which you can place a bid, declined. For more goods sold ...

I wonder how this whole system works.

That is what is written on the site itself (no longer on the main page):
 [i] "You've come to the site of Scandinavian auction, one of the most exciting and profitable types of auctions in the world. Our rules are slightly different from the standard auction, but we sure try, you will love our system and will purchase goods at the prices. "1,111,117.
To begin with just a few highlights:

1. The starting price of any commodity - 1 ruble.
2. With each bid the price goes up only 25 cents.
3. Each bid increases the duration of the auction at a fixed time specified at a particular auction.
4. For the opportunity to make a bet will be charged a token amount, that is what leads to the Scandinavian auction so much fun and sell new products at prices ten times lower than the market.

It seems so simple and clear ....
I explained to the workers and peasants.

Registration form is quite simple. Fill. The cell phone comes to code, which must be made to the appropriate line. Buy a package rates, the price of 6 rubles (full package) up to 7.5 rubles. (Minimum package). It seems that everything can be bought doroguschy goods at very low price.

Yeah ... Think Again. According to my that lasted for a month, observations, actually participate in the "game" only a maximum of 50 workers. This is because more than 50 thousand! The rest, as I understand, disappointed.

1. "The starting price of any commodity - 1 ruble." No comments.
2. "With each bid the price rises by only 25 cents. Yes, but you spend a single bet of the purchased package.
3. "Each bid increases the duration of the auction at a fixed time, indicated at a specific auction.
4. "For the opportunity to make a bet will be charged a token amount, that is what leads to the Scandinavian auction so much fun and sell new products at prices that are ten times lower than the market. The symbolic sum is in the bidding process can make a hole in your electronic pocket. But more on that later.

What's the scam? .. I've long been following them. We believe the economy.

Camera-SLR Nikon D40. It is like 18000 rub. (As written at the auction site), go for 1400 rubles. minimum (this information can be found on the tab "completed auctions"). The rate of 0.25 rubles, ie rates will need four times more than rubles.

1400 * 4 = 5600
This amount of bets.

The average price rate - 6,5 EUR., Although there are bids and 7,5 rub. and such, I assume most, because the "game" this new, many are afraid to "get to Grandma" and buy the minimum package rates 7.5 USD rate.

5600 * 6.5 = 36400 USD, ie twice the cost of the camera.
It is only on rates.

We take into account even, that all bets are made through partners, that "Give" in the affiliate 20% of this amount is 80%
36400 * 0.8 = 29120
Note that this is only on rates, and this is the minimum, so as I took the minimum price I've found in a report from the previous auction, and price rates laid down the middle.

Plus, the winning person paying for the goods within 21 days. You can certainly count rate on the loan at this time, but I think that the guys at the store that did not keep, send money, goods purchased and sent.
29120 1400 = 30520
Deduct the initial price,
30520 - 18000 = 12520

Gains about 80%. This minimum!

By the way, you can buy goods at a price much lower than in the advertising auction.

  Where is there a lottery scam, great business idea!

Hence, we make some conclusions for effective "game improvement".

1. Always, before you start, read the rules of the auction. What is unclear, ask for support.

2. Do not hurry to begin. Look, look prices. Play in training auctions. By the way, since they arrived Wait two to three weeks, taking no action. You will come with training package rates (50 pcs.) Here and start learning.

3. Do not bet earlier than the price of the goods exceeds the price of the last auction. Number of "play" is growing every day and prices are slowly but surely growing. And every stavochka - it 6-7,5 rub. out of your pocket ...

4. Never, never, never bet on SMS. First of all, expensive. With the participation of the game via SMS, you pay more and the mobile operator for sending SMS. But this is not the worst. The worst thing is that these rates usually come with a delay when the auction is over! You know how it hurts!

5. Always consider the cost of delivery (shipping). Buy memory stick for 50 rubles., To pay for it 10 rates (60-70 rubles.), And 200 rubles. for delivery (or ... 400-500 rub. for delivery). In the nearest store the same fleshka lies behind ... 230 USD.

Well, the practical experience gained ... only practice.