Before you become a member, you must first understand how the DubLi Auction works. This is an innovative, ground breaking and exciting new way to shop online, and it is exclusive to the DubLi Network. There is no other online shopping reverse auction, so this is a unique user experience that will guarantee the lowest prices, deals and discounts on your favorite items, brand name merchandise and gift cards. If you are interested in learning more about reverse auctions and how the DubLi Auction works, just read this article.

The Reverse Auction Concept – Unique and Exciting New Opportunities for Online Shoppers
As we keep mentioning, two of the three shopping options on DubLi.com are reverse auction systems (the third being a regular internet shopping mall). Here is a quick explanation of how the DubLi Auction works. The traditional auction concept, whether it be online or in person or by teleconference phone meetings is based on demand and interest. A traditional auction is setup where the seller names a starting price and a timeframe. Either time runs out and the highest bidder wins, or if no one else bids, the highest bidder again wins even before the time runs out. This is a simple explanation of a traditional auction. The reverse auction concept is very new. Pioneered some ten years ago, but successfully implemented for the first time online by the DubLi Auction, consumers and shoppers on the internet now have a new and exciting way to buy brand name and new merchandise online at a click of a button and at the lowest guaranteed prices anywhere. The DubLi Auction is so interesting that millions of members have now joined the Reverse Auction web portal in search for great deals, discounts and bargain basement prices. The DubLi auction reverse cycle works like this (as people ask what is a reverse auction all the time): instead of working upwards in price and seeing who is willing to bid more for an item, the reverse auction works the opposite way where people bid lower and lower. There are two sides to the DubLi Auction portal. The first is the unique bidding wars. So you may ask, what is a reverse auction unique bid portal? Well, the one on the DubLi Auction portal allows members to bid any amount for any specific item online. There is a countdown, and once the time runs out, the lowest unique bid wins the item at that price. Remember that the DubLi Auction Unique Bid rewards the lowest unique bid. On the other side of the portal is the Xpress experience. Here, members bid to disclose the actual current price of the item. Each time a member bids, the price drops by twenty five cents. Once a member decides to purchase the item, the reverse auction ceases and they pay the amount listed. This DubLi Auction is very popular and was the first reverse auction bidding portal on DubLi.com.

So why does a Reverse Auction work? The reverse auction concept is very new and requires some understanding of how all the numbers work. Please continue reading to explore the perspectives from the customer, DubLi and Business Associates.

The Reverse Auction from the Customer Stand Point
Of course all customers and members want to save money! In both DubLi Auction sites, customers are GUARANTEEED the lowest price! So if you find anything cheaper, you can get the full difference back in credits in addition to 10% more! From the Customers’ perspective, buying gift cards or items through the reverse auction is fun, secure and safe, as the price is guaranteed within 14 days of your purchase. This new way of buying the best brands, merchandise and products is exciting and rewarding. Therefore, the DubLi Auction customer perspective is very positive and hence, the exponential growth of the reverse auction portal.

DubLi Auction’s Perspective on Their Reverse Auction Portals
Many skeptical people do not fully understand how the reverse auction actually works in real life. There are some people who don’t believe the system is fair or that the DubLi Auction is rigged in some way. Other people still think that DubLi.com actually loses money from its reverse auction portals as it is not sustainable. However a quick glance at simplified numbers shows that DubLi Auction is a great business model for passive revenue, and is here to stay for a long time. Take for instance a $500 Gift Card that is presented on DubLi Auction. Through the reverse auction Xpress Portal, as soon as someone starts bidding using credits (1 credit is 80 cents), the price of the $500 Gift Card drops by 25 cents. Let’s say 1,000 bids have been made. This will drop the price of the $500 Gift Card to $250. Seamless to the customer, DubLi Auction reverse portal has actually earned $800 + $250 if the latest bidder decides to purchase the gift card. That’s a huge profit! Say for instance another 1,000 bids come in (each at 80 cents per bid) … a customer will get the $500 Gift Card for FREE (well, not technically, as it depends on how many credits/bids they have used to that point, however, you get the point). So in this instance, the reverse auction DubLi Xpress auction gains $1,600 from the $500 Gift Card.

On the other side of the reverse auction portal, DubLi Unique Bid works like this, as many people ask how a reverse auction works. Let’s say we have the same $500 Gift Card and the time allocation is 14 days. After the two weeks, we have the following bids come in (each costing 80 cents):

In this example, we have a total of 2,021 bids. Each bids costs 1 credit which in turn costs 80 cents. Although the winner (lowest unique bid) gets the $500 for only $1.75, the total amount spent by customers on bidding for this same gift card is $1,616.80 (plus $1.75 from the winning bid). As you can see, DubLi Auction’s perspective on reverse auctions is that it generates revenue for them. But what the skeptical people don’t realize is that the reverse auctions on DubLi only account for less than 10% of their revenue! The rest is from the regular Shopping Mall.

The Perspective from the DubLi Business Associate and Partners
The network marketing side of the business keeps the engine going for DubLi.com. People join DubLi Business Associates Program or the DubLi Partner Program in search for residual income and passive cash flow through commissions. Essentially, Business Associates purchase packages of credits that are used in the DubLi Auctions (both reverse auction portals) and they get a discount. However, customers that they refer, purchase these credits from the Business Associate, or BA, at full price, and they get the difference as commission income. This can be between 5% to 25% in some cases. From the perspective of a DubLi Partner, the DubLi Auction and reverse auction portals also work in the same way. They setup their own DubLi Partner website and sell credits and merchandise through their own site. However, in this case, the DubLi Partner gains 30% commission through DubLi Auction customers from their site. So, again, a sound investment and business model for all parties.