Cash4Gold Absolutely Raking In The Money
You’ve probably seen ads on TV and the Internet for Florida-based Cash4Gold , a service that buys gold from people (watches, rings, other jewelry, etc.) via the mail. You send in your stuff, the company sends you money. You have twelve days to say you don’t accept their offer and you get your gold back. The company pays shipping (both ways if necessary) plus insurance. The service launched in early 2008 to a perfect storm of soaring gold prices and a down economy. But still, it’s more than surprising that the company raked in $90 million in revenue in the first year of operations according to a source close to the company. Profit, even after paying out cash to sellers and a huge marketing spend, was in the $30 million range. Revenues in 2009 are on track to hit $160 million, says our source, with a similar profit margin. That implies $50 million or so in 2009 profits. The company decided to buy a Super Bowl commercial in 2009, featuring MC Hammer (pictured in image above, sans dignity) and Ed McMahon. You can watch it here (embedding is…
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