The Newest Scam – Beezid

I am somewhat loathe to do this as I don’t want to bring attention to it, but I already know some people who know about it and others who have fallen for it, so I want to send a bit of a warning out there.

Beezid is the newest online bidding website that is supposed to be full of exciting and incredibly cheap products.  When I first heard about it, I checked it out and thought, “Wow, I can win a laptop for a couple hundred dollars?  Maybe a PS3 for less than a hundred?  Count me in!”  So then I read up on the way it works and found out what a scam it is.  Here is the way it works and why it is such a scam.  You will have to click the image below to make it big enough to see.

BeezidFirst of all, a little explanation about how it works.  When you join you get 3 free bids which is equal to about $3 or so.  3 bids will do absolutely nothing for you, so what you have to do is purchase more bids.  Bids cost anywhere from $.60 to $1 per bid depending on the package.  The more bids you buy, the cheaper it will cost.

The next thing you need to know is that bids will increase the “end price” of the item normally by $.01 when they are placed.  So if something starts at $0.00 (which most do) and there are a total of 1000 bids on the item, the ending price will be $10.  That sounds like it could end up being a great deal, right?  Keep reading.

The last thing that is important to know is that this doesn’t work like a normal bidding site.  You may think, “All I have to do is wait until the last second and I can bid on it and win.”  Wrong.  The majority of auctions that are put up have a timer that resets to a specific amount of time whenever a bid is placed.  So if you wait until there is 1 second left and bid… it bumps the time back up so others have a chance to beat you.

Now let’s say you bid on the item in the above image.  You can see from the two circled areas that the person who won placed 180 bids on the item and the item ended up being $16.13.  That means that over the bidding life of this item, there were 1613 bids placed on this item.  Now think about this a little bit.  That means that the Beezid company made $.60 to $1 PER… BID.  That means that this item ended up giving the company between $967.80 and $1613 for an item that retails at $489 (and they probably got for cheaper).

So the person who won this item ended up paying only $142.13 for this $489 item.  Great for him!  Beezid also made a thousand or more dollars off of this item.  Great for them!  But what about the other 1433 bids that were placed on this item?  Anyone else who bid on this item is out of luck.  They’ve lost their money.  If someone bid 100 times on this item, they just gave $60 to $100 to Beezid and got nothing at all out of it because you don’t get your bids back if you lose.  In fact, as soon as you purchase your bids you lose the money, but you hope that you will win something after spending that money.

I suppose if you are incredibly lucky or incredibly patient you can possibly win great items for great prices.  But you would have to hope that nobody else was watching the same item, because you can almost guarantee that an item worth owning will be bid on quite a bit.

As a good friend of mine said – in the voice of Beezid – “If you win, we win.  If you lose, we still win!”

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3 Responses to “The Newest Scam – Beezid”

  1. You nailed this one. It won’t be long befor the FTC gets involved and this group is taken down. Enough people lose money the complaints will start flying all over the net. Great Job on this! Thank you

    • I appreciate the comment. I’ve even started seeing commercials on television for it, and they continue to make it sound like you can actually win items for $12.00 instead for $500. It’s crazy.

  2. […] The New Beezid Scam As many of you have read in a previous post about Beezid being a scam, here’s a whole new scam… wait.  It’s the exact same […]

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