FlipSwap.com - Go Green: Cash for iPhones

No doubt, the iPhone is the coolest of the cool when it comes to mobiles, but the latest updates may leave old school iPhone owners left out. Afterall, you spent all that money on a non-3G phone, plus the $70+ every month for service, plus a handsome two year contract with the lovely AT&T. So, you're left with a choice: upgrade or feel inadequate. If you want to take the little leap and upgrade, you can try swapping your phone in for some cash at FlipSwap. FlipSwap is a site that offers money for your iPhone or iPod, and they'll even cover the costs of shipping. Everything's free. All you have to do is input some info regarding the state of your phone, and they'll figure out what it's worth from there and send you a check or you can opt for in-store credit. Did I mention, there also green? Yup, for each iPhone, iPod or regular old mobile you send in that's not worth reusing, they'll recycle it for you-- no waste at all. And they plant trees. You can also choose to have the phone donated to charity. It's a win-win play, so go ahead splurge, get that new iPhone for yourself.

"Flipswap makes it easy to give mobile phones a second shot at life by offering fast, free and eco-friendly ways to trade them in. The average American buys a new cell phone every 12 months, which means more than one hundred million working phones become unused every year. Flipswap provides an easy way for consumers and businesses to make sure that these phones get put back into use by offering cash or store credit for them and then getting them into the hands of people that can’t afford a new phone."

FlipSwap is very in vogue. It's green and it gives you money for something you don't need anymore. That they offer recycling, giving to charity, in store credit, or cash without your having to pay a thing is not bad either.

Is FlipSwap merely a fad? Is the pricing algorithm fair? How do they make money?