their ad on Craigslist, but didn't know anything else about them.
Today, I saw a discussion on the Demand Studios forums and learned that when you apply to Interact, you have to submit a 500-word sample that Interact keeps and publishes -- without paying for it. That sounds very uncool. (Edited 11/30/12 to add: This is no longer the case. Interact now lets applicants use a previously published article as a sample, according to the comment from Beth Hrusch, Senior Editor at Interact, below.)
Aside from having to provide a freebie, which, of course, no one liked doing, opinions on the forum were mixed. Some people thought there wasn't much work at Interact, and what there was, paid too little. Others were finding more work and thought it was worth it on a dollar-per-hour basis because the assignments were easy, and they could do them quickly.
One person said that most of the gigs paid less than a penny/word (ouch), topping out occasionally at 3 cents/word. Several people said they made more by getting on clients' "favorite" lists and getting direct orders.
For me, having to give a freebie to get in the door is probably a dealbreaker. (Edited to add 11/30/12 -- Again, this has changed since I originally wrote this post, and Interact no longer requires writers to provide a freebie, according to the comment from a company editor below.)