Everthing Free (1 Viewer)

[Bill Griffith]

There's this sight where you initially pay 20 to 30 times the value of the product thats for sale then in 2 to 3 months you get a rebate coupon in the mail which you send in and get all you money money back.

Goes like this.

Shrek DVD you pay $210

2 months later you get a $210 rebate coupon

Mail in the coupon

You get a check for $210

For the most part the Shrek DVD is free.

Yes yes, time value of money, and interest on money you don't have, yadda yadda. Fine

Has anyone ever heard of this sight or tried it? Curiose if it realy works?

 

[RogerB]

A site like that went bankrupt last year and lots of people lost lots of money.

 

[Anthony Moore]

cyberrebate .com

people lost 10's of thousands of dollars when they went bankrupt. Do a search for it on google and i bet youll find something.

 

[Bill Griffith]

Well I figured the company was making thier money on investments.

They take you money invest/day trade for 2 months make thier profit then get you your money back.

with the market the way it has been it doesn't surprise me.

thanks guys.

 

[Denward]

Bill, Look at it this way. You would be making a loan to that company. Instead of them paying you interest on that loan, they're paying you in the form of merchandise. As any loan officer would tell you, you need to take into consideration the likelihood that your loan would be repaid.

From the other side of the transaction, if they're charging 20 times the value of the product, if 1 out of 20 people don't send back the coupon, they break even on the merchandise and their profit is the interest they earned on everyone's money, less shipping costs.

 

[Bill Griffith]

I think that business plan would be riskier than playing the stock market.

Maybe if it was only 2 or 3 times the value of the merchandise the people wouldn't pay it back. but if it 20 times I would say most people would pay it back.

I believe more in the investment business plan and if people to send in the rebate thats just a bonus.

But hey they went bankrupt so there was definatly a flaw in the plan somewhere.

 

[Brian Perry]

I'm amazed that anyone would be suckered into that scam.

 

[Ryan Wright]

I'm amazed that anyone would be suckered into that scam.

As am I. Others already posted about people losing tens of thousands of dollars from Cyberrebate.com. There were people who took out home equity loans and second mortgages for $50k+, bought tons of stuff, then intended to get tons of rebates back.

When the rebates never came, they were screwed. Think about it: $210 for a DVD? You're going to risk that? I wouldn't put $210 at risk for a $20 DVD. It's not worth the risk.

 

[Bill Griffith]

Granted it is risky but thier were people that got thier rebates. So it worked until the stock market crashed.

Scam indicates that it never performed like it was advertised to perform, and they were delibratly trying to rip people off.

That wasn't the case here. And for awhile it was performing very well.

I think the only people suckered were the ones that allowed themselves to be. No DD before they gave there money away. Those that truely understood the consequences of what they were doing I doubt were the ones that lost $50k+

 

[Hugh M]

hehehe,

see my powerbuy thread here.

 

[Bill Griffith]

don't see the relation mate.

I also didn't read it all, it kind of drags on about the same thing.

 

[Hugh M]

 

[Bill Griffith]

OK

 

[Anthony Hom]

Using the rebate business model, only 20% of all people who buy a product based on a rebate will send in the rebate coupon. That's why rebates are so common. Also some rebates make you jumps through hoops and if you don't get things done just right, the rebate is void.

 

[Aurel Savin]

The whole Cyberrebate thing was a much more complicated scheme than it looks on the surface ... Ponzi scheme ... look it up.
Sorry to all the people that lost money ... greed got the best of everyone; the buyer and the seller!
Oh yeah .. and the stockmarket had nothing to do with them going bankrupt. The timing was right for them to close shop

 

[Jamie E]

Yes, Cyberrebates was a pyramid scheme, pure and simple. When they initially started, they were charging full retail price for remaindered or discontinued merchandise, promising a full purchase price rebate in 2-3 months. They claimed they were investing the money in high yield investments, and that was how they were making their money. After awhile, they started raising the product prices higher and higher. For those who could read the signs, it indicated that they were beginning to be unable to pay off their rebates in a timely manner, and needed more "up front" money to pay the previous purchasers. At that point anyone with economic sense could see that the company was not viable. I'm completely amazed that people were so willing to trust this company with hundreds and thousands of dollars of their money. I guess P.T. Barnum was right, there really is a sucker born every minute.

 

[Bill Griffith]

Interesting information, I never heard that side of it.

Where did you get the info or read about it?

 

[Steve_Ch]

>>Granted it is risky but thier were people that got thier rebates. So it worked until the stock market crashed.

Scam indicates that it never performed like it was advertised to perform, and they were delibratly trying to rip people off.

 

[Hugh M]

I think Pyramid schemes had gotten pretty popular in Colleges and schools in the past.

I never really understood them, exactly how they made money. But I just assumed that since you screw someone in the process you make money.

The last people to put money in are the ones who really get screwed.

 

[Bill Griffith]

How can they say they invest but don't invest.

Then when there plan doesn't work file for Chapter 11.

Wouldn't it be called something different if they were commiting a crime, which is what this is sounding like it was.

Chapter 11 suposedly protects businesses from certain things (or is that Chapter 6), why would they be protected if they weren't a real business?

I also don't see how the piramid scheme would work here.