DubLi – Combining Reverse Auctions with MLM

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Auctions are nothing new to the Internet.  Since the beginnings of eBay and the successful model they built, others have tried to move into the market as well, usually with varying levels of success.  The online auction giant remains relatively unchallenged by other auction sites.  This hasn’t stopped newcomers from making their play, though.

DubLi.com is a reverse auction house with a bit of a multi-level marketing (aka “network marketing” aka “social marketing” aka “scam”) twist.

This has, of course, lead to many accusations of the entire site being a scam.  The site introduced itself in Europe and is now also in the U.S. and is working on a world-wide presence.  Most of their MLM dogma comes with the referral of customers and other associates.  This straight affiliate setup is augmented with a network marketing twist wherein associates that you refer who then refer others pay into your affiliate account as well.

That’s all there really is to the MLM side of DubLi, which definitely isn’t as sinister as some might try to make it seem.

The site itself, apart from it’s obvious eBay-ripoff logo, is basically like every other reverse auction site.  You pay 25 cents per bid and attempt to bid down the product you want.  Prices for auctions begin at discount retail – roughly the price you’d expect to pay at Wal-Mart or Target.  Each bidder drops that price by the 25 cents they bid until either the auction time limit is reached or the price drops to 25 cents.

The auction winner then gets the product for the bottom price (plus shipping).  Other bidders lose out.  The payments for bidding are obviously how DubLi makes up the difference between the actual price and the sale price.

Products range from digital cameras to gift cards and there are no fees to the user other than the bidding price.

Reverse auctions are fun and have their place, of course and because of their system, they list more auctions daily than most reverse auction sites generally do, so there are more products to choose from.

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