All about penny auctions, bid-fee auctions and similar topics
Hi - looks like your case study is struggling. If you're on the lookout for another one, have a look at Jingobid. We've been reading your blog with interest and have to deal with many of the points you raise.The squirrel does look a little underfunded - there is no way you can get a site like this going without spending substantial money on ads. Also, you need to offer some differentiation to other sites, and most importantly be super-honest about everything you do.Jingobid has strong finacial backing and is fully expected to lose (a lot of) money for the first 3 months. It's key differentiationg points are an Asian presence, cheaper bids (around US$50c/ bid), larger auction increments (meaning they are genuinely auctions, not lotteries) and proprietary software (not a knockoff swoopo clone) that is continuously being improved. We also offer dropsales as another option for our users to spend bids. And as we are trying to build a sustainable business like swoopo's, we do not use any shill bids or other tricks - the auction results so far speak for themselves (ouch... but it means there are lots of happy clients).
See http://www.jingobid.com for the site itself.