| One of the first challenges in operating a Reverse | | | | of all the major retailers. This is a very significant |
| Auction is getting enough consumers to participate in | | | | feature because as the consumer realizes they will |
| the auction. A company must be prepared to loose a | | | | always find the best prices for products that fall into |
| good deal of money in the early stages of setting up a | | | | these categories, they will always check the Dubli |
| reverse auction. In the first several months of setting | | | | Reverse Auctions first before going anywhere else. |
| up the Dubli Auctions in North America, Michael | | | | Let's assume that the consumer is interested in the |
| Hansen, the founder of Dubli lost millions of dollars | | | | iPod nano listed above. |
| because there were not enough consumers | | | | They simply click on the image of the iPod and it will |
| participating in the auctions. | | | | bring it to the top of the page with a full product |
| Lets take a look at the Dubli Zero Auction and | | | | description below it, so the consumer can see for sure |
| examine how it works as well as how the "word of | | | | this is the iPod they wish to bid on. The next thing the |
| mouth" or in this case, Viral Marketing builds out the | | | | consumer will notice is the start price is $138.50. Below |
| customer base. | | | | the start price it says "Your Current Price Is"; and it will |
| First of all, anyone can participate in a Dubli Reverse | | | | be grayed out. In order to see the current price the |
| Auction, but in order to participate in the auction, the | | | | consumer will have to click on the green button that |
| consumer must have a bank of Dubli Credits, with | | | | says "Show Price". When they click "Show Price" it will |
| each credit costing 80cents. Once the consumer has | | | | cost them one Dubli credit, or 80cents, and the current |
| established their free account on the Dubli Network, | | | | price will be shown. |
| then they will click on the Zero Auction tab at the top | | | | Every time someone clicks on show price, the price |
| of the page. Once the Zero Auction is loaded they | | | | drops by 25 cents. That 25 cent drop comes from the |
| can either click on "Show All" or they can click on one | | | | 80cent Dubli credit. The remaining 55cents goes into |
| of the 6 product categories. The 6 categories are as | | | | the commission structure which is either paid out to the |
| follows:o Travel and Voucherso Toys & Gameso | | | | non-profits or the Dubli associates that are helping Dubli |
| Top Auctiono Electronicso For Hero Household and | | | | establish the initial customer base. |
| Leisure | | | | At the time of the writing of this article I clicked on |
| If for example the consumer is interested in electronics | | | | show price and it was at $98.00. That means I spent |
| they simply click on "Electronics" and all the electronic | | | | 80 cents to save $48.50. Now at this point you might |
| items that are available in the zero auction will be | | | | be asking why I didn't buy the nano right then. I already |
| loaded on the page. At the time of this article the | | | | knew that the start price of $138.50 was the best |
| following items were listed in the zero auction.o HP | | | | price I could find anywhere online - Dubli even |
| iPAQ914c Business Messenger --- Start price: | | | | guaranteed me it was the best price I could find online, |
| $349.99o Epson Multimedia Projector 2200 Lumens --- | | | | so why would I not grab it at $98.00. |
| Start price: $549.99o Dyson DC28 Animal --- Start | | | | The reason is very simple. I CAN'T BUY IT. In the Dubli |
| price: $599.00o WD portable Hard Drive 500 GB --- | | | | Zero Auction, you have to be the last consumer to |
| Start price: $106.95o iPod nano- chromatic 16 GB | | | | check the price and take it from the final 25cents to |
| purple --- Start price: $138.50o Casio Exilim EX- FC100 | | | | zero (thus the name of the auction) and if you are the |
| Digital Camera --- Start price: $239.95o Elgato EyeTV | | | | one that takes down to zero, then you get it for |
| Hybrid ---Start price: $128.00 | | | | nothing. That's right, you get to buy that brand new, |
| You will notice the start price for each item is listed on | | | | brand name, fully warranted $138.50 iPod nano for |
| the right. What Dubli does, which is unique to Dubli, is | | | | absolutely nothing. The only expenditure you have is |
| they guarantee you that the start price listed is | | | | the cost to the credits you spend to take it to zero |
| absolutely the best price you can find anywhere online | | | | and of course the shipping cost. |