Hi Frank! Thanks for the note, and you're not being too nosy at all.
:-)
Our thought process was twofold--one, we could spend gazillions of dollars on advertising (like PPC, print mailers, etc) and not necessarily get content on our site (listings), which we need in order to have a site. So we thought our advertising dollars, or at least a majority of it, could go towards paying folks to list, where we would then actually have content. We decided we'd rather pay $250 for 1000 listings than $250 towards a flyer that 90% of people might just toss.
Also, we thought it would be a nice model to give something back to our users, and of course, it's something no one else is doing which also makes us unique, and not just another free classifieds site. We recognize there's a lot of revenue sharing starting to happen, and eventually that will be the model behind Listasaurus (once we have an actual real revenue stream!).
Our business model is such that the site will be funded by ads in our Business Directory, which is the only area we're currently charging for besides Business Opportunities. We're hoping we won't need to put any banner ads on the site to monetize it, but that will take some time to determine.
Hope this answers your questions! Let me know if you have any others, and I'd love some feedback on the Listie site if get a chance to take a look!
:-)
Melanie