John Rogers: Ponzi scheme?

[D. Bergin]

Originally Posted by Sean1125

They pay a total ebay and paypal fee of 5.2% with a cap of $200-250 on any item. They make their money on the higher end items.

The absolute lowest Paypal rate is 2.2% + transaction fees alone. You're telling me that they're getting some sort of deal with Ebay, they only pay 3.00% on their sales? Not to mention anchor store subscription costs, Ebay taking a cut of shipping, chargebacks, returns, overhead, hiring people to scan, list and pack stuff for you, manning the phones, insurance, International transactions incurring higher fees, etc....

Higher end items...........they need to sell for over $2800 for that $250 cap limit to even kick in (if they count Top Seller discounts into the mix, it would be even higher then that). I checked out Probsteins Sold lots for the last 3 months. 65,000 lots sold................only 55 lots that ceiling actually kicked in for..........most on the lower end of that threshold, not making much of a difference.

I don't see it adding up. Seems like a House of Cards to me.