When you have something that you don't need anymore, but don't want to trash, you tend to give it away. Sometimes they go to friends, sometimes you post them on Craigslist. But there's no system based on merit or need. After all, some people need a lightly-used baby stroller than others.

YCombinator-funded Listia intends to become the epicenter for giving away free things. By doing things like signing up, giving away free items, and more, users can build up credits and bid on free items. Is it an ingenious way to build a marketplace and community around free items, or is it an unnecessary complication to giving stuff away?

If It's Like eBay, Does It Also Have eBay's Weaknesses?

So Listia as a platform is very straightforward and intuitive. Here's the basic overview:

1. You sign up and are automatically given 500 credits. 2. You can use those credits to bid on free items - everything from iPods to magnets to invites to websites. 3. At the end date, the bid with the most credits wins. 4. To get more credits, you can either sell stuff, refer friends (50 credits per friend), or buy credits ($0.10 per credit). The latter is essentially Listia's revenue model.

The service is really simple to understand and utilize. We also see why Listia can get addicting. Like eBay, you get swept up into swapping credits and getting rid of items so you can get that iPod. There are some quality items on this site, plus a few gems.









We can't help but feel that Listia complicates the process of giving away stuff, though. Is Listia the most efficient way to give away stuff? We'd argue not - posting on Craigslist or just posting to your Facebook is going to be less time-intensive. However, we do see the merit in the credit system - it's entertaining and it helps make sure that the person who wants the item the most actually gets it.

Listia risks becoming entangled in the current situation plaguing eBay. The world's largest auction site, after years of growth, is now bleeding users and profits at a shocking pace. The entertainment factor of eBay died off and users turned to more efficient alternatives to buy items - aka Amazon.

We're interested to see how Listia avoids and overcomes these potential pitfalls. We believe it will gain traction and build a strong community. We're not as sure about whether it can sustain users or growth in the long-term. Still, Listia is a really fun way to give stuff away.