I've been here about 1.5 months and just set my loot bag up this week. To be honest, the loot bag is really for higher end stuff. Once you get a 100% lower reagent cost suit you will have no need for reagent collecting until you get bored with whacking monsters and delve into crafting. I haven't gotten to that point yet. At our level, the gold scavenger on your ledger tool in your backpack is your primary money maker. The loot bag can be set to pickup specific items that you set it for. Just do a search on Google and you'll get a good description of the process. To be honest, until you work high end monsters and champ spawns the stuff you'll come across besides the gold will be garbage. You couldn't give it away. However, your loot bag is worth setting up anyway so it's good to go when you're ready. It takes about half an hour to do.