How Does DealDash Make Money?

How Does DealDash Make Money?

DealDash is a privately owned bidding company that was started in 2009 by William Wolfram who was only 16 years old at the time. It is headquartered in Minneapolis, MN and the current CEO IS Pasi Lohi. The number of employees as of 2021 is 19. Toda’s topic- How Does DealDash Make Money?

The auction has been running from 500BC and has influenced many e-commerce models for instance Amazon – where bidding of the same products is of different rates by various sellers or an eBay auction.

It is the largest auction website in the U.S. You can also access it as a mobile app. It uses the penny auction strategy to run. 

The auction starts at zero dollars and zero cents (0.00) with no minimum reduction prices. Each bid that you place adds one penny (0.01, 0.02, 0.03) and it resets the countdown timer to 10 secs. If no bids are placed in the next 10 seconds you win the auction. All you need to do now is pay the final price for your product and wallah! It’s now yours.

The products range from electronics, jewelry, home goods, beauty commodities, and apparel. Most of the prices of these products go for a much lesser price than its actual price. It also goes into partnerships with companies that are in retail such as Walmart.

So what will we be discussing?

  1. How does DealDash make money?
  2. Features on DealDash that you have to Know
  3. Is DealDash a Scam?
  4. Conclusion

How Does DealDash Make Money?

Now let’s get into details on how DealDash makes money.

Like many other penny auction websites, DealDash sells bids in exchange for money. The breakdown of the sources include

  1. The bids. They offer them in 100 packs or more and they start from 12 dollars. The more you bid the more money they make and this makes most of the revenue for DealDash and it amounts to more than 50 percent. 

The unspent bids also bring in good revenue. For instance, a dress goes for $20 and the auction starts from $0 and moves up to the highest bid that the bidders take it to.

Now we have the highest bidder who has won the dress with an offer that she made for 10 dollars. Remember many other bidders made offers. So what happens now is DealDash receives the total amount of bids made on the dress. 

You guessed right, the company will make much more than the actual price. This explains why DealDash offers free shipping to its clients.

  1.  It also makes money from the high number of customers who will keep coming back due to the auction’s addictive tendencies. Currently, it has close to 15 million customers. 

The company made over 43 million dollars of revenue within 4 years since its launch in 2009. We may not have the current price on DealDash but from the estimation above we can confidently assume they are doing very well.

  1. They have a feature known as the Buy it now feature where you as the bidder get to buy products at their full value.
  1. DealDash makes Extra money from investors and retailers who pay referral fees. The names of some of the investors are Ari Korhonen, Finnvera, and David Friend.

Features on DealDash that you have to Know

  1. Free delivery within 14 days. Keep in mind that DealDash is only available in the United States.
  2. DealDash offers a full refund when you make the first purchase. You can get your money back within 90 days and the interesting part is you get to use DealDash for free.
  3. They also have an option of earning Daily Returning Bidder Rewards which depend on how many bids you placed the previous day
  4. The products that you purchase will be original and with a warranty. DealDash deals with trusted brands and original manufacturers such as Walmart and Seers
  5. One of the most unique features that DealDash has to offer is a gamification element known as Time as Highest Bidder. Every time you win a bid the progress bidder bar fills up. When your progress bar fills up it allows you to win more auctions weekly. This is known as Level Up’. According to William, this specific feature made the company attract six times more customers.

Is DealDash a Scam?

A good way to know more about whether DealDash is legit is by reading the reviews from customers. 

Over 23000 customers have reviewed DealDash at the Apple store and the score is around 4.3/5.0 and similarly, from the Google Play store, the score is not far from 5 from over 36 000 reviewers. If we go with the total number of reviewers from Google Play Store and the Apple Store the answer is a Yes!

However, they still do have criticism and bad reviews. Some customers compare it to gambling or betting since the money lost is through bidding. But to be fair, the company does disclose that some losses will occur on the terms and conditions website. 

Therefore it is safe to say that all the customers are aware of what they are getting into since it’s fully disclosed on their website. The company came up with a clever alternative that we discussed earlier known as Buy It Now. If you lose the bid, you can buy the product with the lost money at the original retail price. It is better than not getting anything in return after bidding.

Conclusion

By now you probably understand that DealDash is legit. 

No reports conclude that it is a scam.

We hope you now have a clear understanding of how DealDash makes money and the cool features that can help bidders to bid better using DealDash.

Our advice to you would be to always bid for items that you want to buy so that if you do not win it in the auction, you can buy the item for the retail price without incurring any loss.

How Does DealDash Make Money?

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