Newly introduced e-commerce sites often require some extra explanation so that online shoppers can fully understand the benefits.  This was the case with DubLi when I entered North American in the Spring of 2009 and more recently in Australia and New Zealand.  This post will address some of the common questions I get about the auctions and its shopping portal.

First, DubLi is a German-based company that features two distinct reverse auctions.  The auctions feature the latest and more in-demand retail items.  Popular items range from Playstation 3s and digital camera’s to designer purses and gift cards.  Customers have the advantage of bidding on things that are guaranteed to be priced below retail price, sometimes much lower.

Both the Unique and Xpress auctions require users to buy credits up front to take part in the great buys.  Each 80 cent credit is used to reveal the hidden price as well as to purchase the item.  DubLi offers volume discounts to avid customers looking to purchase larger amounts.  In fact, many business associates have bought credits for just 60 cents, equaling a 25% discount.

The Xpress auction is where users have the ability to buy auction items at will.  They do this buy first using a credit to reveal the price which in turn dropped it by 25 cents, hence the name ‘reverse auction’.  It 100 customers clicked on revealed price without deciding the purchase, the price would be $25 less than the initial price.  At any point the item can be purchased via credit card and the auction would end.  Currently there are hundreds of Xpress auctions available for bidding.

The Unique Bid auction is similar to the Xpress auction in that customers use credits to win brand new items.  However, this type of auction is timed such that the lowest unique bidder bidder wins the auction at the specified end time.  Bids are placed on 25 cent increments from $0 all the way up to the retail price.  Unique Bid winners often attest to a strategy in placing a range of bids to hedge against competing bidders.  Additionally, DubLi will notify users if their specific bid price was duplicated so that users can bid again to find the lowest unique price.  The more people that learn how this new and exciting form of online shopping, the more that prices will quickly drop below retail standards.

The second half of the DubLi website is the shopping portal, where a larger number of products can be bought from the largest worldwide retailers.  It includes well over 1000 retailers that feature unique discounts for DubLi shoppers.  Each item lists a percentage that is credited to shoppers in the form of  points.  Once sufficient points are accumulated, users can redeem them for cash- or gift-cards for flexible spending.

DubLi quite literally has something for everyone, regardless of a person’s shopping needs or customs.  Look out for it to quickly become a household name as its appeal spreads through online and social networks for years to come.

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The unique bid auction is one of two different DubLi reverse auctions.  Similar to the Xpress auction, the goal is to be the lowest bidder.  This runs counter to the commonly accepted thought of a traditional auction where prices rise as demand increases.  However, given the fact that customers are walking away from drastically reduced priced goods the unique bid auction has become a popular auction for online shoppers.

Here is a brief description of how a customer wins.  The objective is to land on the lowest unique bid of a 25 cent increment, such that no other customer has bid that amount.  Once the auction ends the system starts at $0.25 and works upward by 25 cent intervals looking for the precise amount where only one customer has bid.

Let’s take a closer look now.  After placing a bid the system instantly notifies the customer if the bid is unique or lowest.  If neither of these is true, additional bids must be placed to have any shot at winning.  Bidders can place a single bid or a range of bids across a desired interval.  In either scenario DubLi notifies bidders of each bids’ status as the auction progresses.  If a price no longer is unique the customer must decide whether to continue bidding since that amount is now inconsequential.

Unique Bid Winner Example

Each bid costs one DubLi credit, or 80 cents.  So the total price of the item equates to the actual lowest unique bid price plus the total amount of credits used in order to locate the lowest bid.  However this total cost often pales in comparison to the item’s actual retail price.

This last point underscores why the DubLi unique bid auction is growing in popularity.  Few other auction platforms allow for significant saves on name brand items.

Contact me at dan@doctordubli.com to learn more about becoming a free DubLi customer and how to get free credits!

For-profit and non-profit organizations alike are always looking for ways to raise funds.  DubLi has formulated an effective means of filling this need through its Partner Program.

Dubli’s Partner Program is designed for companies, corporations, affinity groups and non-profit organizations with large customer bases.  It essentially provides a safe and risk-free online fund raising mechanism by linking DubLi’s auction website with the business entities customized brand image.

The business, or partner, simply recommends their current base of customers or donors to their replicated DubLi website.  Money is raised by customer purchasing DubL credits as well as items in the Shopping Portal.  These items include the latest brand new brand name products from leading retailers such as Nokia, Apple, BMW, LG and Gucci as substantially reduced prices.  Current customers are routinely seeing discounts ranging from 30% to 80%.

At just $199 it represents a cost effective means to any business to generate additional income from an existing and loyal customer base.  The partner earns a generous 30% profit margin for each DubLi credit purchased by their customers.  As an example, if a customer purchases 100 credits at the Partner Website for $80, the partner would receive 30% (or $24) as well as 30% on the commissionable dollars from those customers’ shopping mall purchases.

This non-traditional yet creative method of fund raising allows partners to get paid by DubLi without their customers having to contribute in large amounts. Many well-known organizations in Europe and now America have seen success by becoming a DubLi Partners, even amid the current economic meltdown.  Some of the latest charities include those affiliated with singers Jordan Sparks and the Backstreet Boys, and Baseball Hall of Famer Joe Morgan.

Look for more organizations, especially non-profits, joining the dozens of current DubLi Partners looking to capitalize on global online shopping trends.

For years DubLi has asserted its overarching pursuit to become the world’s largest online shopping portal.  Achieving this formidable feat will not be possible without some serious dedication from the individual associates who market the DubLi opportunity.

In the summer of 2009 DubLi announced a breath-taking incentive for those business associates who lead the charge and achieve the senior vice president rank by 2011.  Any associates who attain the SVP rank will be awarded a $1,000,000 cash bonus!  In addition to the money, the first SVP by the end of 2010 will also receive a new Bentley Continental convertible and a matching Breitling Bentley.  (Check out the video above to see the Bentley)

So just why is DubLi willing to offer such a lucrative bonus?  To answer this you have to understand the corporate growth patterns of other e-commerce giants like eBay and Amazon.  Both of these companies had little competition early on which allowed for staggering growth over their first ten years.  And today Amazon is enjoying some of their best quarters as retail malls are losing out to online shopping websites.  In fact, 4^th quarter 2008 marked their highest earning quarter in history.

DubLi is seeking to follow the same path to profits by providing an exclusive reverse auction twist to online shopping.  They acknowledge the need to mark their ground in this shopping niche in so doing are attracting the best talent possible to expand their market share.  The company can already forecast what a significant customer base a SVP would have to produce.  The long-term revenue generating contribution of these customers would far exceed the bonus’s DubLi has agreed to pay.

Over the next year DubLi will attract millions of customers throughout America, Australia and Asia.  The great thing is that any motivated entrepreneur can take this business opportunity and literally grow it into a fortune.  Contact our team to find out how you can become a DubLi Senior Vice President.

The DubLi Reverse Auctions originated as a mere forethought for CEO Michael Hansen in 2003.  He first bought the Technical Division from eBay’s Berlin office late in 2003.  Together with his team they formulated a solid infrastructure for the company, spending three full years constructing the online platform.  DubLi’s beta site launched early in 2007, featuring the Express, Zero and Unique Bid Auctions.

The three auctions went live in January 2008 after several lead programmers spent month finalizing minor technical issues.  Initially the customer base included just 28 European countries.  The first eight months included an acquisition of just over 2.3 million customers, and today DubLi reports a 72 to 1 customer to business associate ratio.  Of the three auctions, the Unique Bid auction dominated customer bidding throughout the first 16 months.

The company’s official North American launch took place on April 4^th 2009.  Since then one of the fastest growing markets in the Fall of 2009 has been Australia and New Zealand, where DubLi was formally introduced in September.  And now it forecasts its global auction platform to roll-out in November 2009.  This will provide a solid basis that seeks to garner worldwide customers.

DubLi also announced three other key developments.  First, they’ve agreed to pay a $1 million cash bonus to any business associate who reaches the top rank of Senior Vice President by the end of 2010.   Secondly, the Backstreet Boys have established a partnership through DubLi’s partner program so that their charity will be linked to the auction site.  And lastly DubLi will become a publicly traded company soon after planning a merger with MediaNet Group.

This brief chronicle of the DubLi history underscores its adaption to change in the e-commerce marketplace.  Looking ahead, it’s quite apparent how the most recent events and announcements pave the way for a formidable advancement in global online auctions and shopping.

Many DubLi business associates have raised the concern about the DubLi auctions being compared to gambling.  This post should debunk any of these claims with a closer look at U.S. Gambling law.

Gambling requires three distinct elements: 1) Chance, 2) Consideration and 3) Prize. Let’s look at each of these more closely.

1) – CONSIDERATION:
Consideration strictly refers to money in American Gambling Law.  The money must be put at risk and the player gets nothing in return for that money, other than the chance opportunity to win a prize.  The subject must also stand to lose the money permanently for no gain.

The Standard Auction Model: Traditional auctions are void of the “consideration” element in the gambling sense, since the auction ends with the highest bidder gaining the right to purchase.  Once the winning bidder pays the matter is resolved, as is the case in a reverse auction.  Today, numerous Fortune 1000 companies utilize the “ordinary” reverse auction with their vendors.

The DubLi Auction Models: In DubLi’s Express Auction and Unique Bid Auction, a customer expends one 80 cent credit to view the price and not to purchasing a chance to buy.  The non-refundable credit represents the consideration element   The Express Auction features prices continually dropping 25 cents with each “show price” click until the customer decides to click “buy now”.  The Unique Bid Auction winner is the only customer to bid the lowest unique 25-cent increment price.

2) – CHANCE:
US Gambling Law states that “chance” equates to an event resolving by a random occurrence completely independent from the participant’s influence.  DubLi does not exhibit this level of chance since the resolution is strictly dependent on the customer’s (participant) conduct.   In either DubLi auction, if no one clicks on Show Price, then the price never drops and there is no resolution to the auction.  Therefore, by definition, there is no random influence acting outside the control of the participants.

3) – PRIZE:
Once again US Gambling Law defines “prize” as anything of value.  This is the only element that DubLi Auctions have in common with Gambling.  The evidence of this is obvious since customers are rewarded with brand new (often luxury) items such as computers, designer clothes or gift certificates.

In conclusion, the DubLi auctions cannot legally be considered games of chance and therefore do not rise to the level of gambling.  Please comment below with your thoughts or questions.

In this second half of the DubLi compensation plan, I’ll cover how some commissions are backed on the package level (bronze, silver or gold) you buy as a business associate.

Quarterly Bonus: In the summer of 2009, DubLi announced a 50% Quarterly Bonus for Gold package holders.  This bonus awards a 50% bonus to those who sponsor at least $6500 in packages on their frontline within a three-month quarter.  For example, if a Gold member sponsors 3 gold members (~$9,000) on his frontline from October through December, he’ll receive $4,500 as a BONUS in the month following the quarter.

Sales Director 3x3x3

Reselling credits. When you buy a gold package, you have purchased the credits at a 25% discount from their $0.80 retail price.  That means that when you resell them, you earn the margin between what you paid ($0.60) and what you sell them for ($0.80).  This favorable 33% margin is a compelling reason why initial bronze BA’s upgrade to gold following their start.  A bronze package holder would have a 14% margin due to a 10% initial discount. So All of the income from the sales of your credits is, therefore, entirely tied to the package you purchase.

The shopping portal revenue.  Once your customers begin purchasing the shopping portal you still receive compensation based on your package level and the purchase amount.  DubLi has set up a revenue sharing relationship such that bronze, silver and gold package holders will receive 10%, 15% and 25% (respectfully) of the total revenue.

Although the revenue percentage of each item varies, I’ll illustrate an example using a 5% pay-out.  For instance, let’s assume your customer purchases a new computer through a shopping portal’s merchant for $1000.  If the total revenue generated is arbitrarily 5%, DubLi receives $50 ($1000 x 5%).  Of that $50 DubLi pays the Gold package holder BA 25% (or $12.50).

A bronze package holder would have receive 10% of the $50, or $5.00.

DubLi Debit Card

The same percentage specific to the item serves as a discount to the customer.  This percentage of the total price of the item represents the available commissionable dollars. Using the computer example from above, the customer would receive $50 rebate at the end of the month and is loaded on their “Load and Spend” Debit Card. They can use this card anywhere MasterCard or Discover is accepted.

Hopefully now you have a better understanding of the DubLi compensation plan.  Please post your questions below in the comment section.

DubLi business associates can earn compensation in a number of ways, however, generally speaking the compensation falls into one of two categories:

* Income based on the BA’s organization rank (Team Member, Team Leader, Team Coordinator, Sales Director, and Vice President),or …

* Income based on the package level (Gold, Silver or Bronze) that you buy when you become an associate.  I’ll cover this and the shopping portal revenue in the next post.

The video here gives you a beginning look at the DubLi compensation plan in the early stages:

Your introductory title as a DubLi business associate is a Team member.  As a TM you earn an up-front commission of $28.75, $67.50 or $149.75 for a Bronze, Silver or Gold frontline sponsor (see image below).  These values are based on a 5% commission.

Image 1: Frontline Commissions

Once you sponsor three BA’s (of any package level), you become a Team Leader.  You now earn up-front commissions according to the second row for frontline sponsors.  These are double what a TM would earn since TL’s are paid out at 10%.  As a TL, you would receive 5% of your frontline sponsors new BA’s (see image 2).

The Team Coordinator level is attained by sponsoring 3×3 and earns frontline commissions according to the third row in image 1.  All of these dollar values are based on purchased credit packages, whether they be initial or subsequent.  The Team Coordinator is a solid goal upon starting in DubLi since this is where bonus’s begin.  BA’s of TC or higher are paid a 20% bonus commission each month based on the month’s production.  So if a TC sponsored several BA’s that totaled $5,000 in November, DubLi would pay him/her an additional $1,000 in December.

Image 2: Commission Percentages

Here are the exact percentages you earn based on your rank and the new BA’s organizational position:

• Earn 5-25% in Retail Commissions on Credits purchased by Personal Active Retail Customers.
• Earn 20% from all Credit sales generated by personally enrolled BA’s.
• Earn 15% overrides on all Credit sales generated by Team Members.
• Earn 10% overrides on all Credit sales generated by Team Leaders.
• Earn 5% overrides on all Credit sales generated by Team Coordinators.
• Earn 2% 1st generation bonus on all Sales Directors.
• Earn 1% 2nd generation bonus on all Sales Directors.

Look reading about about the DubLi compensation plan in my second post.  Comment below with questions.