Internet/Mobile phone Auction vendors – how do they make their money

I am a subscriber of a mobile phone operator in Indonesia, and from time to time, despite my vehement refusal, I receive commercial text offering auctions of items from mobile phones to cars, the premise is that you can buy these items on the cheap (“a motorcycle sold for USD 8”), by participating on this auction. You pay a (premium price) text for each price quote you want to give, and then you pay the winning price (if your bid won).

I wonder how such companies make their profit, and then i read a great article from boing-boing that shows just how. link here. http://www.boingboing.net/2008/10/02/online-auction-game.html

Let’s hear more of this

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