Like all good companies, FreeMarkets originally focused on certain marketplaces, such as raw materials. However, the auction technology can be applied to many diverse industries. Recently, the company has auctioned tax preparation services. Moreover, FreeMarkets has purchased several companies in the surplus equipment industry. Apparently, the market is highly fragmented, yet has great margins.
Many companies have equipment that is tough to sell and often sits in warehouses.
Revenues have been strong for FreeMarkets. In other words, FreeMarkets does have a business model that works and is sustainable. And at its current rate of growth, it should not be long until the company returns to profitability.