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Auctiva CEO: eBay Changes Triggered Move to Pay Model
 

http://www.aspkin.com/forums/../../b...May29_2009.JPGIn a webinar with several industry bloggers, Auctiva CEO Jeff Schlicht said changes to the eBay Partner Network program - as well as more eBay changes that have not yet been announced - led to his company's move from a free to paid model, news that AuctionBytes broke this week. According to Schlicht, Auctiva generated close to half of its revenue through the eBay affiliate program.

eBay acknowledged earlier this week that it had changed the program to stop payouts to seller tools. Schlicht said that was "the biggest contributing factor" to Auctiva's new business model. He said he had wanted to announce the change on May 1st, but had been waiting for eBay before moving forward.

With 20 percent of eBay listings using an Auctiva feature, there has been a big reaction in industry blogs and forums about the change, from the timing (30 days notice), to the rates - and to the reason for the switch from free to fee.

Sellers shocked that they must now pay for some services that were previously free posted that they were considering their alternatives, including using other listing tools or abandoning the eBay marketplace altogether. Some sellers are concerned that other tools that had also received revenue through eBay's affiliate program may have to raise their fees as a result of eBay's changes.

Auctiva said it is hosting a webinar on June 1st and made available a price calculator to aid sellers' understanding of the new fees.

I think this was inevitable anyway, regardless of the changes. Auctiva's goal must have been to grow their user base and establish themselves as the main tools provider and then start charging. This is as good an excuse they will have. Can't really blame them