Cash4Gold 50 Million a year? - WickedFire - Affiliate Marketing Forum

shawn81 · 10-02-2009, 10:26 PM

50 Million a year? Oh my...

Cash4Gold Absolutely Raking In The Money

Quote:

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 disabled for some reason). Television, not Internet advertising, continues to be their most profitable marketing, says our source.

The business velocity attracted the venture capitalists, of course. Sometime this year the company took a sizable investment from Mangrove Capital Partners and possibly other investors as well. Mangrove is notable because they’re a European firm (and also one of the first investors in Skype).

So what’s next for Cash4Gold? Competition. A number of clones have launched in the U.S., which is driving marketing costs up. The company recently launched operations in the UK and will continue international expansion. They’re going to have to do some serious brand building and lock up key strategic partnerships if they intend to create a long term business. But in the meantime they’ve made a ton of money off a very simple but very good idea.

basicsix · 10-02-2009, 10:34 PM

two threads. its not that interesting.

erect · 10-02-2009, 10:37 PM

Quote:

Originally Posted by basicsix

two threads. its not that interesting.

I think we need a minimum of 5

Danc1122 · 10-02-2009, 10:43 PM

Better question is how much fucking gold do they have?

efeezy · 10-02-2009, 11:08 PM

^ Probably none. I'll bet they melt all that shit down and sell it as gold blocks to some arab country.

tjdaz · 10-02-2009, 11:28 PM

Quote:

Originally Posted by Danc1122

Better question is how much fucking gold do they have?

Start another thread if you find out.

barman · 10-02-2009, 11:42 PM

uhm no shit?

filthy margins.

schockergd · 10-02-2009, 11:45 PM

Great concept , It's like a pawnshop!

Wright · 10-03-2009, 12:31 AM

Quote:

Originally Posted by schockergd

Great concept , It's like a pawnshop!

It's better.

Pawnshops have a higher payout to the consumer for their gold.

imouttehre · 10-03-2009, 12:46 AM

Quote:

Originally Posted by efeezy

^ Probably none. I'll bet they melt all that shit down and sell it as gold blocks to some arab country.

Hell no... arabs wouldnt even buy our shitty gold... any arab country you go to, they only sell 18k gold and up.

the norm is 24k for everything. I wonder if they send out that check like telebrands does... there backend system must be phenomenal.

leadsupplier · 10-03-2009, 12:54 AM

this is not a surprise to me at all ...

AdExhibitJason · 10-03-2009, 01:23 AM

Quote:

Originally Posted by imouttehre

Hell no... arabs wouldnt even buy our shitty gold... any arab country you go to, they only sell 18k gold and up.

the norm is 24k for everything. I wonder if they send out that check like telebrands does... there backend system must be phenomenal.

You do realize when they melt it down it is pure gold right? They make it without the metals that make gold karets

I could be wrong.

Sonny Forelli · 10-03-2009, 02:11 AM

Quote:

Originally Posted by AdExhibitJason

You do realize when they melt it down it is pure gold right? They make it without the metals that make gold karets

I could be wrong.

<face-mothafuckin-PALM>

n0fxx · 10-03-2009, 02:18 AM

everyday i'm hustlin'

Refrozen · 10-03-2009, 02:56 AM

Quote:

Originally Posted by AdExhibitJason

You do realize when they melt it down it is pure gold right? They make it without the metals that make gold karets

I could be wrong.

lol.

tacoX · 10-03-2009, 03:08 AM

Get Smelter + Get Paid

BlueYonder · 10-03-2009, 11:53 AM

After gold is melted it's reprocessed and can become any karat. Arabs generally buy 22k gold, as 24k is too soft to be durable. I have a 22K cartouche that came from the middle east and has Arab markings (purchased for $42 from eBay!).

schockergd · 10-03-2009, 02:50 PM

Higher the Karat rating , the softer gold is (pure gold is quite soft, which is why it was so sought after in ancient times, it's very easy to mold into jewelry and has a low melting point.)

thunderlips · 10-03-2009, 05:56 PM

i never got their or any of their competitors' shit to convert well enough. fuck em

supportomatic · 10-03-2009, 06:11 PM

I wonder why local jewelry and pawn shops don't capitalize on the opportunity by advertising better payouts than Cash4Gold? I mean, do a direct comparison right in the ad and they'd get people in the door. I guess pawn shops don't understand that you can sell that shit to refiners for serious bank.

Jon · 10-03-2009, 06:14 PM

Are you sure they launched in 2008?? I could have sworn I saw their annoying ads on daytime television when I used to ditch school as a kid.

But you should see this guy's blog post, definitely the funniest on the topic because he sends them complete garbage (literally) spray painted in gold LOL

Quote:

Unfortunately, real gold is very rare, and hella expensive. Even after checking the whole recycling bin and both garbage cans, I found that I had absolutely no gold scraps in the house.
I grabbed some doo-dads out of the junk drawer and some gold spray-paint out of the garage.
Soon I had a gold bottle cap, a gold stem from a bunch of grapes, a gold pop-top, a gold zip-tie, a gold 'S' hook, a gold nut and the elusive gold nickel.
In all, a nice sack of treasure!

Goldkit:
The Gold Kit Surprise - Recycling Gold Trash . Cockeyed.com
and
The Gold Kit Surprise - Recycling Gold Trash . Cockeyed.com

C4G:
Cash4Gold Will Offer One-Third of the Actual Value for your Gold

And here C4G offers him a bribe and also tells him how they made a similar offer to Rip Off Report, and it worked for them (but he later removed the ripoffreport.com mention)
http://www.cockeyed.com/citizen/gold...putation.shtml

One of the best parts about these companies is that they only melt down the "scrap" gold they can't fix and resell to jewlers, pawn shops or to people on ebay. See, "scrap gold" isn't jewlery at all, its the gold bits you find in electronics mostly, on circuit boards. What they do is they take your "scrap JEWLERY" and melt it down as a last resort. They are actually in the business of fixing and reselling what they get. They've also been doing this for a LONG TIME, and mostly had senior citizens as their largest customer base. Its not a very tough business to get into either, and there aren't many laws except for the minor FRAUD and DECEPTIVE ADVERTISING issues, which can actually be argued by a good lawyer I'm sure.

Gotta give them respect for being really creative though. There are also a few ways to make SERIOUS bank from the C4G/GK offers as an affiliate or advertiser/broker, and there doesn't seem to be any stopping this banking behemoth anytime soon either.

supportomatic · 10-03-2009, 06:36 PM

heading to Home Depot to buy some gold spray paint... i just found my retirement plan.

BlueYonder · 10-03-2009, 07:20 PM

Quote:

Originally Posted by supportomatic

I wonder why local jewelry and pawn shops don't capitalize on the opportunity by advertising better payouts than Cash4Gold? I mean, do a direct comparison right in the ad and they'd get people in the door. I guess pawn shops don't understand that you can sell that shit to refiners for serious bank.

Local jewelers and pawnshops give a far lower payout, maybe at the same rate as C2G. You have to take your stuff direct to a refiner for the best payout. Retailers buy your gold, and sell it to refiners at a profit.

I was offered $5-$6 per gram for gold, whereas the city refiner I like pays me about $18 per gram.

Grindstone · 10-04-2009, 12:02 PM

Quote:

Originally Posted by efeezy

^ Probably none. I'll bet they melt all that shit down and sell it as gold blocks to some arab country.

China is not an arab country.

Jan · 10-04-2009, 12:17 PM

I like the special, hard to miss envelopes addressed to cash4gold!

There are still lots of old fashion mailboxes out there....wonder how many have their flag up and a "special" envelope filled w/gold jewelry (or spray painted facsimiles) inside waiting for an intercept.

10-02-2009, 10:34 PM	#2 (permalink)
basicsix Junior Member Join Date: May 2009 Location: Little Rock Posts: 27 iTrader: 0 / 0%	two threads. its not that interesting. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ One time I got bit by a spider and started being able to ejaculate webs from the palm of my hand.

10-02-2009, 10:43 PM	#4 (permalink)
Danc1122 Senior Member Join Date: May 2008 Posts: 882 iTrader: 1 / 100%	Better question is how much fucking gold do they have? Share Share this post on Digg Del.icio.us Technorati Twitter __________________

10-02-2009, 11:08 PM	#5 (permalink)
efeezy WF Uranium Member Join Date: Oct 2007 Location: Fortune & Glory Posts: 2,879 iTrader: 22 / 100%	^ Probably none. I'll bet they melt all that shit down and sell it as gold blocks to some arab country. Share Share this post on Digg Del.icio.us Technorati Twitter

10-02-2009, 11:42 PM	#7 (permalink)
barman Join Date: Aug 2006 Location: Internets Posts: 5,848 iTrader: 12 / 100%	uhm no shit? filthy margins. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Where Affiliate Marketers go for News. and Weed.

10-02-2009, 11:45 PM	#8 (permalink)
schockergd Senior Member Join Date: Dec 2008 Location: Circleville Ohio Posts: 1,323 iTrader: 6 / 100%	Great concept , It's like a pawnshop! Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Shut up and make some money already. PM Me if you want a discounted PPC-Coach Subscription.

10-03-2009, 12:54 AM	#11 (permalink)
leadsupplier Senior Member Join Date: Aug 2009 Posts: 1,321 iTrader: 13 / 100%	this is not a surprise to me at all ... Share Share this post on Digg Del.icio.us Technorati Twitter

10-03-2009, 02:18 AM	#14 (permalink)
n0fxx Member Join Date: Aug 2009 Posts: 52 iTrader: 0 / 0%	everyday i'm hustlin' Share Share this post on Digg Del.icio.us Technorati Twitter __________________

10-03-2009, 03:08 AM	#16 (permalink)
tacoX is RYAN EAGLE Join Date: Sep 2008 Location: Chicago, IL Posts: 1,608 iTrader: 0 / 0%	Get Smelter + Get Paid Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Flash Content Locking - 1900 Incentive Offers

10-03-2009, 11:53 AM	#17 (permalink)
BlueYonder Flaming panties Join Date: Aug 2008 Location: Central N00bistan Posts: 2,223 iTrader: 32 / 100%	After gold is melted it's reprocessed and can become any karat. Arabs generally buy 22k gold, as 24k is too soft to be durable. I have a 22K cartouche that came from the middle east and has Arab markings (purchased for $42 from eBay!). Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Better copy = More sales I write sales copy that moves the numbers. Review thread here Try Article Marketing Robot FREE

10-03-2009, 02:50 PM	#18 (permalink)
schockergd Senior Member Join Date: Dec 2008 Location: Circleville Ohio Posts: 1,323 iTrader: 6 / 100%	Higher the Karat rating , the softer gold is (pure gold is quite soft, which is why it was so sought after in ancient times, it's very easy to mold into jewelry and has a low melting point.) Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Shut up and make some money already. PM Me if you want a discounted PPC-Coach Subscription.

10-03-2009, 05:56 PM	#19 (permalink)
thunderlips Senior Member Join Date: Jul 2008 Posts: 1,728 iTrader: 0 / 0%	i never got their or any of their competitors' shit to convert well enough. fuck em Share Share this post on Digg Del.icio.us Technorati Twitter

10-03-2009, 06:11 PM	#20 (permalink)
supportomatic Asshats for sale. Join Date: Oct 2008 Location: Colorado Posts: 215 iTrader: 0 / 0%	I wonder why local jewelry and pawn shops don't capitalize on the opportunity by advertising better payouts than Cash4Gold? I mean, do a direct comparison right in the ad and they'd get people in the door. I guess pawn shops don't understand that you can sell that shit to refiners for serious bank. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ <none>

10-03-2009, 06:36 PM	#22 (permalink)
supportomatic Asshats for sale. Join Date: Oct 2008 Location: Colorado Posts: 215 iTrader: 0 / 0%	heading to Home Depot to buy some gold spray paint... i just found my retirement plan. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ <none>

10-04-2009, 12:17 PM	#25 (permalink)
Jan Resident GILF Join Date: Aug 2006 Location: Arizona, USA Posts: 1,151 iTrader: 13 / 100%	I like the special, hard to miss envelopes addressed to cash4gold! There are still lots of old fashion mailboxes out there....wonder how many have their flag up and a "special" envelope filled w/gold jewelry (or spray painted facsimiles) inside waiting for an intercept. Share Share this post on Digg Del.icio.us Technorati Twitter __________________ Failure is when you stop trying...DON'T STOP TRYING! 24 hour article delivery Jan's Writing Services Jan's Ideas Ways to Save Money

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
google + myspace split in a year?	bizzykehl	Affiliate Marketing	3	05-14-2009 02:45 PM
What happened to the WF Awards?	bam bam	Shooting The Shit	13	04-29-2008 09:11 AM
Jackpot winner $136 million (idiot)	turbolapp	Shooting The Shit	24	04-08-2008 09:58 PM
DMV.org make $11.5 million per year	Laura	Shooting The Shit	17	07-31-2007 10:21 AM