They said it’s auction

From the gathering this afternoon, I heard of an interesting monetizing model from Lelang Gokil. It’s an auction site, but as members bid, the price goes down. Anyway, here’s the rundown.

  • Member buy tokens. The starter pack cost IDR 200k (approx. EURO 14.17). Each token in the price is valued IDR 5k (approx. EURO 0.35).
  • Seller register their item. The site check the item’s condition, and probably pay the seller in advance.
  • Members starts shooting with the tokens they have.
  • Until at a point, with rule I don’t really understand, the winner is selected.
  • In case that the final price is minus, the winner will get the item, plus cashback.

Now, the magic is when members starts bidding the price down. Normally in auction, the winner pay all, while those losing doesn’t pay anything, after all, they don’t get the item. But here, everyone use their token and it’s gone. But each token is cheap, €0.35 so the personal loss might be negligible for most. The winner get the item at a very cheap price, sometimes even for free.

The cashback… well, from example I saw, the cashback are usually petty cash in amount so negligible that not even beggar on the street want to accept.

The company then get money from all the accumulated bid, including from peoples who lose the bidding.

I just wondered, it there any site in the west that use this model too ? Or is it really the creativity of the people in this country. By the way, the site linked above is in Indonesian.

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