For instance, if I'm not mistaken, they use U-Pic as their insurance source. Being they have or will have A LOT of Auctiva users, they're able to get a great rate. Say they're able to get domestic insurance for up to $100 in coverage for .15 to .25? Ah, but the customer is being charged $1.30 for $50 and $2.30 for up to $100 in coverage. Auctiva gives you a kick back of .25, leaving them with .80 to $1.80. I'm guessing they get a better rate than the one used as an example.
I'm sure they've worked something out with Sellathon and whoever else they're aligned with. It's a savvy way of charging and or being paid for a service they're advertising as being 'free'. So, Auctiva is 'free' but they're being 'paid'. I say, good for them. Witty.
I'm sure Auctiva is looking at things long term. Perhaps, the cashflow is slow in the beginning. However, once things begin to snowball, it could become a cash cow and all while offering a 'free' service.
Of course, this is my understanding of Auctiva.
I'm sure if I'm off base someone will come along and set me straight. I'm all for letting Auctiva handle things and if it goes south, it goes south. Life will go on if that day ever comes. I mean, how many are SpareDollar refugees? Well then, the sun is still rising and setting isn't it?
Don't worry, be happy, lol.
PS -- Let's continue to keep Auctiva 'free'. If you're concerned make insurance 'mandatory' for all of your buyers, use the Sellathon products via Auctiva and whatever else they have set up to generate capital.