Is DealDash A Scam?
Price: .12 cents to .60 cents per bid
Owners: William Wolfram
Overall Rank: 6 out of 10
DealDash, Product Overview
Is DealDash a scam? I will try to establish this company’s merit or the lack of it, in this review. DealDash is an online commerce site that is mainly known as a penny auction site. It was founded in 2009, by William Wolfram. It is the longest running penny auction site going and is based out of Minneapolis, Minnesota.
They have over 4 million registered users on their site. That’s a pretty good base for a business.
On an odd note, DealDash also owns DealDashReviewed.com, where they collect testimonials and reviews of people that have used DealDash. It seems they want to drive home the point that they are legit. It also seems that they have articles that advertise and obviously try to steer customers to start bidding on.
It’s kinda weird and misleading for an established business. I originally thought it was a legitimate review site about DealDash, but it’s not.
DealDash and other penny auction sites have ingeniously turned shopping into an actual game, and millions are playing these risky games. We all know shopping can produce highs in people, whether finding a really good deal or just finding something awesome that looks good on you. But couple this with turning it into a game, bringing out the competitive side of people and you got an interesting conglomeration of both market that sure to hook a lot of people and get the fun maxed out.
But with Deal Dash, it’s slightly less risky than other penny auction sites. Odds are more stacked in your favor. Check out my other two online penny auction reviews here, Is Quibids a Scam? And Is Beezid a Scam?
What are Penny Auctions?
Penny auctions are also called bidding-fee auctions. That’s where bidders use a pay-per-bid.
What are you asking, is a pay-per-bid? Well, it’s where every time you place a bid you pay the penny auction site money. More simply put, “You Bid, You Pay.” Usually, the bid amount starts at $0.00 and goes up .01 cent with every bid. All the while some kind of countdown clock ticks away. The countdown clock resets back to a certain time with each bid placed. The last highest bidder wins the auction when the clock reaches zero. There is no guarantee you’re going to win anything! It’s possible to lose all of the money you placed while bidding.
How Penny Auctions Make Money
To understand DealDash, we need to first understand how penny auctions make money in general. To the novice penny auction bidder, it seems DealDash is selling merchandise extremely cheap. But in reality, this it is not the case.
For every penny you see in the auction price at DealDash, at a minimum, there is at least .12 cents behind that amount and as high as .60 cents. Say an item sells retail for $100.00 and the auction ends at $10.00. So it takes 1000 bids to reach $10.00 at a penny a bid, at the lowest bid cost per bid amount (let’s say.12 cents). So 1000 X .12 = $120.00. That’s not too bad, right? Plus you have to figure shipping is always free at DealDash too.
But all auctions don’t sell at the .12 pay-per-bid amount. Some people buy bid packs at .60 cents. This is where the profits really add up for all penny auction site. We will do the same scenario, as above but assuming people bought the highest pay-per-bid amount, .60 cents. 1000 X .60 = $600.00 on a item that retails for $100.00.
Now, DealDash claims they lose money on most auctions they run. (Great news for bidders!!) Deals to be had! In the end, it balances out, and the profits DealDash makes are comparable to those of traditional web shops. I would tend to believe them based on the sales they run on bid packs.
How It Works At DealDash
In the beginning…you must first register and set up an account. Then you must purchase bid packs; they need to be first purchased prior to bidding on any item. All DealDash auctions start at $0.00. Each bid adds .01 cent to the price and resets the timer back to 10 seconds. When the timer runs out the last highest bidder wins the auction. You also have to pay the final ending price of the auction on top of the bids you spent winning the auction.
The Good & The Bad
- No Membership Fees!!!
- Shipping is Always Free!!!!!
- If you bid on an auction and didn’t win it, instead of just losing your bids, They give you the option to buy it now from their store; this is called Buy it Now. You pay the full retail value. As soon as you purchase the item, they give you your bids back. I think this unique and a good thing, if you really wanted the item, with the hopes of getting it cheaper by working the system.
- DealDash claims on average you get 60%-99% off of Retail.
- 90-day full money back guarantees on the first Bid Pack purchased. This is a good deal, DealDash!!! No risk people!
- This has good and bad points to it, but it’s mostly good in general for the users of DealDash. It is that members are only allowed nine auctions per week maximum. The system won’t allow you to bid once you reached the limit of 9 auctions.
- The ability to earn Free Bids, you can earn free bids by being the highest bidder. When you are the highest bidder a clocks countdown to specific times. When you reach zero on the clock, you receive Free Bids. This is a form of encouragement to get you to bid more.
- Bidbuddy. Bidbuddy is automated programs that strategically places bids for you. DealDash gives bidders the option to use Bidbuddy on all auctions. Bidbuddy waits until the last second to bid for you. You set the limit of how many bids you want to use. According to DealDash, the majority of auctions on DealDash are won by using Bidbuddy. Newbies take note!
- No Reserve Prices.
- Outstanding Customer Service, they are quick and helpful, resolving problems in a jiffy. Many reports of people getting their first bid pack purchase money back.
- The price you pay for bids vary! DealDash runs specials throughout the year. (aka sales) The base amount is .60 cents per bid but they have as Low as .12 cent per bid, and at the time of writing this article it is at .13 cents per bid for the weekend. I have seen some companies in the penny auction market as high as .90 cents!! So, .60 cents maximum down to .12 cents for a low. Watch for the specials!!
- One of the “Big Guys” in the world of penny auction sites and has been around the longest. Which speaks to the DealDash’s reputation.
- When bidding, it shows the last four ending auctions prices for that particular item, with amount and users names. Gives you an idea what the average auction price is for that item.
- Brand names products. Some high priced items.
- There is a learning curve to using DealDash, just as all penny auctions sites. Can be confusing and misleading to new users.
- They do not ship to Hawaii or Alaska, or other countries.
- Easy to lose money.
- Lots of people lose money for one person to get a great deal.
- DealDash earns ridiculous amounts of money on items. Often times far exceeding the retail value.
- Must be a resident of the U.S.A.
Who is DealDash For?
Are you looking to try and get a great deal on a particular item? Do you love shopping and also love auctions? Do you like risking money in the object of trying to get a fantastic deal? If you do, then I think DealDash is for you then. It sure seems people enjoy the allure of trying to get things cheap. It’s fun! I can understand why.
I believe newbies need to be ultra aware of how penny auction work and I think DealDash would be a good penny auction site to start with. Being they have a 90-day full money back guarantee on the first bid pack you buy. A good place to get the toes wet and do a little exploring the world of penny auctions without the scam.
DealDash Tools & Training
They have a Tactics and Tips page. Which gives you eight rudimentary tactics, but it’s better than nothing, and it’s a start.
Their support is fantastic as far as I can tell. Tons of reviews detail how they got their money back.
The most you will pay for a bid pack here is .60 cents. Which ain’t bad. The least I have seen at DealDash is .12 cents per bid. Which is SUPER GREAT in the world of penny auctions. So you obviously want the lowest one (.12 cents). DealDash is very transparent about pricing (as shown below) showing us the number of bids for the amount of money and also how much we are paying for each bid. They do a good job of breaking it down, so it’s easy to read and understand and also saves you from doing basic math. Again, the lower the amount of each bid the better. More bang for your buck.
During this sale, they keep the pay-per-bid at the same amount, at .13 cents.
My Final Opinion of DealDash
DealDash definitely has the lowest pay-per-bid in the field of penny auctions. As low as .12 cents. I would never purchase .60 cents pay per bids, EVER!!!!!!, Why, when you can get as low as .12 cents.
Fair And Honest Auctions? I would say a lot more than their competitors. That added with the 90-day full money back guarantee it’s sure is attractive. I think the odds are stacked in favor for most users, more than other sites. Would I recommend them to friends and family, maybe to the right person?
DealDash at a Glance…
Owners: William Wolfram
Price: Various depending on what Bid Pack was purchased (.12 cents to .60 cents per bid)
Overall Scam Rank: 6 out of 10
Hold On, Before You Go…
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If you have any questions or suggestion, I would love to hear them. So please do so below. Thanks!
I found this site to be very useful and informative. I had limited experience with penny auctions,and now I feel more educated on the topic? Which penny auction would you recommend for a novice like me?
Glad I could help Carrie, to you find out more on penny auctions. They are a lot different than regular auctions like Ebay. I would actually recommend DealDash to start out with, cheap pay-per-bids and the whole 90 day money back guarantee on your first bid pack purchase. I would also wait until they have a sale when the pay-per-bid is around or below .20 cents. Hope this helps!
Comprehensive article, Dan. We just did a review on these guys and had a similar experience. http://www.azreviewer.com/blog/money-finance/are-penny-auction-sites-like-dealdash-scam-sites/
I’ve been bidding on Deal Dash for about 6 months and the deals considering the price of bids are far and few between. (Even at $.12 a bid which is where I buy them) The Buy it Now option is nice in order to get you bids back if the price is too high. Some of the concerns I have are that the price of the items are very inflated if you do decide to buy them. I stick to gift cards where you know the value is what the amount of the gift card is. Another concern I have is it seems to me that bidders go way above and beyond the actual price of the item. I’ve tracked certain bidders and they consistently bid well beyond the value of the item. Cannot say for sure but it seems to me that the bidders are there to drive the prices up. Is there such a thing as “Bot” bidders. I have received a few items at a very good value but again that is not very often. I do not feel DealDash is trying to rip anyone off but caution and common sense needs to be front and center when bidding on items. For me DealDash has been mostly a fun way to purchase items and occasionally get a deal.
Hey Doug, I have heard mention of “Bot” bidders but I am not sure as yourself, would be hard to prove. Also glad to see you are buying at $.12 a bid. Thanks for the sharing your experience, I know someone will find it useful also.
I want my MF money back! There was no warning that there would be a $75.00 charge taken off my pay card and that’s how I live and pay my bills! It’s been about a year and I have made several attempts to get this credited back to my card with no luck and I’m really pissed!
Kelli, thanks for sharing your experience. This must be a recurring charge or something like that right?
I understand your frustration, I assume you tried talking with customer support. Try asking for the supervisor’s phone number or at least talking to a supervisor, and calmly explaining your situation.
Great review, I’ve considered dealdash but haven’t made the leap yet. If I decide to get my feet wet i feel the info you have provided will help create a overall more positive experience. Knowledge is power, thanks
People should be aware of these kinds of sites before they start dropping money and super glad that you made yourself aware of the basics before jumping in. Good for you! Thank you for the compliments!
Actually, I think DealDash is a great site and the only way you really lose a lot of money is if you don’t pay attention to what you are doing. I don’t regularly purchase bids, but wait for my free bids to accrue. In less than two months I have won 8 auctions and paid from one penny to $14.03 for the items I won. I have received about $1300 in products and spent less than $200 total, including any bids I did purchase. Common sense and patience is the key here. Also, the customer service has been prompt, friendly and efficient. I have watched and learned the bidding habits of many regulars so know when some auctions will either be expensive or an exercise in futility. You have to set limits on both what you are willing to pay and how many bids you are willing to use for any one auction. You should also be careful with half price or free auctions, sounds great, but those that spend big on bid packs will bid for long periods and you will get caught wasting a lot of bids on these auctions.
Great tips for beginners and expert users! Thanks Karen. I feel DealDash is definitely one of the best and more legitimate penny auction sites out there.
I love your tip on common sense and patience, cause deals are definitely to be had on DealDash if you know what you are doing.
Very grateful for sharing your experiences and tips for others out there!
Keep lying to yourself amd DEALDASH IS SCUMMY BUSINESS AND the reason they put all the details im MICRO FINE PRINT… WHOEVER ALLOWS FINE LRONF TO BE LEGAL CAN BJRN IN HELL TOL…. Too many SELFISH PUNKS IN POWER!!!!!!! DEALDASH and WILLIAM WOLFMAN BURN IN HELL SCUMBAG