Global Credits Network (GCN) Auctions
How do they work and are they a good deal?
If you are not familiar with GCN Auctions check out their company video here: Video
Signing up for an account is free and easy to do, you just need a referral link from a current affiliate.
Once you are in the back office, you will need to purchase credits via BTC.
Be sure you are aware of the differences between the STB Credit Price listed at the top of the dashboard STB CREDIT PRICE: Ƀ 0.0001 and the actual purchase price of a STB Token where 1 STB Token = Ƀ 0.00011111 (this will reduce the actual amount of credits you receive).
Once the credits are in your account (if it takes more than 12 hours, use the Chat option to talk with the friendly support staff for them to find and apply your credits), you can then decide to participate in the auctions.
You will want to click on the View All button to see what auctions are available. To select the item you want to bid on, click on the top description. Which will take you to the listing page shown below:
The Price that you see on the screen is $64.04 looks really good for a $1500 Airline certificate but lets break this down.
Every bid costs 1 credit and increases the auction by $.01. So the $64.04 current price means a total of 6404 credits have been consumed so far.
As of this writing, BTC is hovering around $7300 per BTC so based on the purchase price each token costs around $.73. So the company so far has received $4674.92 for this $1500 item.
And the reality is that the auction is not over as you can see the time in red says 0:04 meaning there is a bidding war going on with the auto-bidders taking credit after credit every 10-30 seconds until finally the auction participant runs out of credits or the price reaches the Max Price ($200). Note: the company removes the credits from your balance when you setup an auto bidder even if the auto bidder does not get triggered, so be careful on how many credits you allocate.
As it ended up, this auction closed at 69.44 (notice on the ended auction list they removed the $ knowing it was not real in the first place). So the company received 6944 credits * $.73 = $5,069.12 – $1500 (item value) – $100 (random estimate of cost to process item) = $3,469.12 profit. Not bad but less than they were hoping if it had gone to the max price of $200. At max price, a total of 20000 credits * $.73 = $14,600 – $1500 (item value) – $100 (random estimate of cost to process item) = $13,000 potential profit on this auction. It is an impressive business model for the company.
Now if you are wondering how much did it “really” cost the winner of the auction (jkalenuik), we do not know. But from the 2 screen shots above, he was in the auto bidder war from 65.13 to 69.44. Say there were only 2 in this bidding war then of the 431 credits used 216 would be his; meaning the 4.31 run up cost him another $157.68 (216 credits * $.73) this is over and above how many hundreds of credits used before the auto bid war kicked in.
If you do win an auction at the max price, call your sponsor immediately as they have 1 hr to contact the company to purchase the same item for the max price. This is one of the greatest marketing ideas of the year because it sounds great for the sponsors but the chance any auction makes it to the max price is just about nil. And even if it does the company is not hurt that much as their profit only goes from $13,000 to $11,700.
Theoretically, the auction participant could make only one bid (ie. use only 1 credit) and have it end up being the last/winning bid for the auction. Best of luck for those of you going for the one bid win.