How It Works

Microbid.com features digital, crowd-powered Auctions, which help members turn almost anything into a winnable Auction where the winning Bidder pays just 1% of the price - while Sellers, Brands & Businesses always get 100-125% of their full asking price (Microbid pays the other 99-124%)...and there are lots of daily, loyalty-driven Instant Rewards and Referral Bonuses in the process.

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EXAMPLE CROWD AUCTION

Get a $500 Mastercard or VISA Gift Card for $5.

$ VALUE OF YOUR CROWD AUCTION

1% RESERVE PRICE
$

Every Auction starts at $0.000 and members bid $0.001 at a time (ie. 1/10th of a penny) until the Reserve Price is reached. Learn more

If your Auction is successful:

(1) Winning Bidder - pays 1% of the price (ie. $)
(1) Consolation Winner - receives same 1% offer (ie. $)

(3) CONSOLATION REWARDS

- CRW1 - Wins 7.5% or $
- CRW2 - Wins 4.5% or $
- CRW3 - Wins 3.0% or $

INSTANT REWARDS & REFERRAL BONUSES

- $ in Rewards for members who shared this Auction with users who signed up and placed bids.

- $ Referral Bonus if you referred the winning Bidder.

- $ Referral Bonus if you referred someone who posted this Auction.

- $ in daily Rewards while the bidding phase is going.

HOW MICROBID CROWD AUCTIONS WORK

There are 2 phases (the Bidding phase & the Last Chance Bids phase) and it may seem confusing or complex at first, but it’s really not - and everything was done in a very specific way to make it all legal, fair, easy and quick for people to use/do.

BIDDING PHASE

All Auctions start at $0.000 with a 1% Reserve Price (ie. 1% of their Face Value, which is entered by the Auction Creator/Poster, but reviewed by our system and team in various ways).

Members then simply place "micro" bids in $.001 increments at a time (10 "micro" bids = 1 penny) - and pay as little as $0.30 per bid (to place each $.001 bid)...until the 1% Reserve Price is reached. Then, the Auction automatically enters a 59 second Last Chance Bids phase...

LAST CHANCE BIDS PHASE

You may have heard of the "3 minute rule" with Auctions? The Last Chance Bids Phase is similar, but more streamlined, convenient (for bidders) and fair.

When a Crowd Auction reaches its minimum Reserve Price (ie. 1% of the Face Value of the item, good or service being auctioned), it automatically enters a Last Chance Phase where all bidders have 59 additional seconds to place their best and final offer bid.

Note: Users can actually submit their Last Chance Bid for any Auction at any time after an Auction first goes live. And, we’ll soon be adding Auto-Bid features like "Always set to Max" (ie. always set my Last Chance Bids to the max for any Auctions I bid on").

HOW TO ACTUALLY WIN AN AUCTION

1. If no bidders place any Last Chance Bids, then the highest bidder (who placed the bid that reached the Reserve Price) automatically wins the Auction. Simple.

Note: and there are no weird rules around not being able to bid concurrently, ie. in a row, etc. Technology, plus both cellular and wifi connections are unreliable enough, so we try to keep it as simple as we can.

2. However, if Bidders have submitted Last Chance Bids, then the one with the highest Bid automatically wins.

But - to keep things fast and fair (so people don’t waste/lose a ton of bids), we cap the maximum Last Chance Bid, so technically there can be multiple Bidders with the same max Last Chance Bid...

MULTIPLE HIGH BIDDERS?

3. And, if there is more than 1 Bidder who bid the max, then the Bidder (of those) with the highest Loyalty Score (ie. Total Loyalty Stars) wins the Auction.

Note: There’s also a "Cooling" period feature built in that helps prevent recent Winners with high Loyalty Scores from running up their Loyalty Score just to dominate winning. This helps keep Microbid more fair and equitable for all. Recent Winners do still have a chance for their bid to win in those cases though.

SPECIAL NOTE ON BID AMOUNTS, MECHANICS & NUMBERS
If you’re interested in dissecting Microbid and knowing exactly how everything works as far as bids, amounts, etc. It’s all actually very simple. And, unlike other scam Auction platforms that have done reverse Auction related services before, 85% of all Microbid Revenue goes directly back to our Members in the form of Auction Discounts, Rewards, Referral Bonuses, etc. - Microbid only keeps 15%. More

This entire platform was designed to utilize and leverage crowd-power and aggregated demand to help Bidders buy stuff at a much lower price than they might have been able to pay outright otherwise, as well as to help people, Creators, Businesses and Brands more easily sell, promote and bring more exposure to their own products, items, goods and services - even if that means mixing it in with already popular products, luxury items and Auction Packages based on awesome Ideas with viral potential (like a Trip Around the World Travel Package with full Itinerary).

Each $0.001 bid costs a minimum of $.30. Your actual cost per bid will always be higher* because of transaction fees, etc. And, the Auctions are set to take in an amount of funds around 3X higher than Face Value to accommodate all the different features, consolation rewards, incurred effort and/or expenses of the Seller (or Auction Creator), etc. which make the Microbid Auctions + Service possible.

Predatory businesses, services and brands are out there marketing their products and services up by just as much (they just never disclose or make it easy to see what their cost of goods sold are to the general public - especially if they aren’t publicly traded), but you have to pay their full price and if they even have Loyalty Programs and/or Referral Bonuses they’re usually very industry-standard - and either hard to earn or not very good to begin with. So, we decided to take that model and flip it on its head - for both the Consumers/Customers and the Businesses, Brands and Sellers.

We wanted - and needed - to make something ridiculously bold because we have to be able to compete and market Microbid in a world where wasteful, big companies are constantly over-spending on Ad Space and Marketing, which inflates costs for smaller Businesses and Brands, like us (at this point) - all just to sell you stuff at overly inflated prices - that way we could bring the world exactly the kind of crowd-powered platform that it needed and one that would truly benefit the 500M+ small businesses in the world (and their 2B+ Customers) vs relying so much on traditional Social Media, which is now over-run with a lot of fraudulent accounts, traffic, bots and AI. You know there are gonna be real people on an Auction site that sells stuff for 1% of the price.

*We’ll soon be adding an ACH option to help bring the cost of bids closer to their actual cost - and we do already have a Zelle option for Microbid+ Members. Also, it doesn’t really matter what we make the bids from a $.30 cost perspective or a $.001 perspective - it’s all relative. We chose the way we did after lots of trial and error - and for a lot of very specific reasons.

COMBO BIDDING

One of the features that makes Microbid the most unique Auction platform in the world is Combo Bidding, which is optional, but allows the bids of higher, similarly valued Auctions to be combined, allowing minimum Reserve Prices to be reached faster - thus, creating Auction Winners faster.

Tip: Combo Bidding is optional and can be "enabled" when posting/creating a new Auction with a simple toggle. Look for the combobids icon on most higher value Auctions.

BUY NOW PRICE VS FACE VALUE VS AUCTION VALUE

We display and let Sellers/Auction Creators/Posters set a "Buy Now" price to:

1) Help establish the regular, market value for Bidders.
2) To let Bidders know how much they can really buy it now for.

Note: Some Sellers/Auction Creators may be auctioning one of their own products, items, goods or services and may want to offer it at a specific Buy Now.

IMPORTANT
However, you then enter the "Auction Value" to establish how much the sale of the actual Microbid Crowd Auction should generate (for you). The "Auction Value" then also automatically populates and sets:

1) The 1% Reserve Price, and
2) How many bids at $.001 would be required to hit the Reserve Price.

The lower your Auction value, the less bids required - and the faster an Auction should go.

CONSOLATION WINNERS

Every Auction also has a "Consolation" Prize/Reward offer/bidder as well. And, that bidder receives the same 1% pricing offer as the winning bidder.

How Consolation Winners Are Chosen

Microbid’s algorithm looks mostly at how many bids bidders placed combined with their Loyalty Scores (ie. total stars).

In addition, almost every Auction has 4 additional, smaller Consolation Winners too - with rewards based on a % of the "Buy Now" value of the Auction.

#1. 7.5% reward
#2. 4.5% reward
#3. 3.0% reward

The Best Loyalty Program on the planet

Loyalty Stars are our way of rewarding longevity. You can use them to redeem rewards from Microbids Rewards Store - but, they also help you earn more Daily Instant Rewards and win more Auctions too.

And, we even built in a "cooling" feature to our secret algorithm that minimizes the chances of someone who’s recently won, while still keeping it possible - thus creating more unique winners.

Loyalty + Referral Program Highlights:

Nearly every Auction* has a Consolation (ie. 2nd) Auction Winner
Earn 6.67% Referral Commissions (from: Bids, Member Upgrades, etc)
Note: same as $20 per 1,000 bids placed by your referrals
Earn 10% Bonus when you refer someone who wins an Auction
Earn 10% Bonus when someone wins your Auction*
Earn 2%+ Bonus when you refer someone who posts/creates an Auction that is won.
Earn Daily Instant Rewards - every single time a user places a bid they get a chance to instantly win a reward - or even the outright Auction they’re placing a bid on!
Become a Preferred Vendor to be a provider for Auctions that have been recently won. Tip: Choose "Seller/Service Provider" as the Account Type when you create a free account.

* Note: Exceptions would be promotional Auctions, certain exclusive and special Auctions, etc. - those may not have the 2nd Consolation Winner. However, the overall Loyalty system was designed so that every time a user bids they could potentially win the entire Auction outright that they are bidding on.

See other Monetization features + benefits

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