The Difference Between Auctions, Raffles, & Giveaways
This guide will thoroughly explain the differences between auctions, shop raffles, and shop giveaways.
What is an auction?
> In short, an auction is a public sale in which goods or property are sold to the highest bidder.
> An auction is started by having a set currency amount on the item being sold then progresses to higher bids.
> Multiple people participate in auctions offering a bid either required by the seller of a set amount or by a different amount a bidder is willing to bid.
> Auctions usually have set times and dates which is ultimately up to the auctioneer.
> There are no negotiations of the sale and typically the auction ends once the time is over, the highest bid as been reached (auto buy in AH terms), or there is no next highest bidder to the previous bidder.
> The host of an auction does not have to accept your bid.
> There are different types of auctions including: charity, silent, reverse, etc., but AH typically uses the standard and charity auctions.
What is a raffle?
> A raffle is a means of receiving a token or ticket that is drawn at random in which the winner receives a prize.
> Raffles normally contain a set price for purchase.
> Raffles can be seen as a gambling competition where people can obtain one to several amounts of tickets to increase their chances in winning.
> There is generally a set date and time in which the raffle will be over and the winner will be announced by the host.
> Raffles can be utilized to raise money for charities and other personal events.
> It is uncommon for the host of a raffle to decline/reject the winner.
What is a giveaway?
> A giveaway is essentially giving away goods for free and used for promotional purposes.
> On AH, there is an icon located on the far left of the reaction bar that states "giveaway token" which indicates a giveaway token.
> Like raffles and auctions, there is a time and date when the giveaway will begin and end.
> Usually a giveaway consists of one item or token used in a random drawing.
> There are no negotiations or rejection as the goods are being given away for free.
The Main Difference & tl;dr version:
Giveaway: pool of participants get a free token to receive a free prize
Raffle: pool of participants pay for x amount of tokens/tickets to receive a prize at random ; more tickets, the more likely you'll receive the prize
Auction: pool of participants outbid each other for a prize usually an item in high value