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Just to be precise, cyberrebate does not need to be a true ponzi scheme to stay in existence. A ponzi scheme is something that depends on an ever-increasing number of paying participants in order to succeed. An example would be the classic chain mail scam - "send $1 to the top 5 names, add yours to the bottom, and in a month you'll receive $14,000!". Obviously the first people make a lot of money, but eventually the chain letter runs out of steam and most of the people lose money.
If, in the prior example, cyberrebate sells $15 DVDs for $150, if 10% of the people fail to claim their rebate, or do it incorrectly, then CR breaks even (ignoring the money they make from any true manufacturer rebates, getting interest, etc). If more than 10% do, then CR can make money, without resorting to a ponzi-type scheme. They can stay in business, continuing to sell overpriced merchandise to the same core set of customers, and essentially those who get the item "free after rebate" are getting the item at the expense of those who end up paying through the nose.
However, the above depends on the continued existence of customers who will get burned but continue to buy from CR. If customers who fail to get a rebate stop buying, the percent of non-rebate customers falls, and CR starts losing money, unless they can find more sloppy/uncaring customers to replace them.
I wonder if the sudden increase in prices means that they are being successful and are able to entice people even at the inflated prices, or if they are having cash-flow problems, so they need the inflated prices to make money from the remaining customers?
The rebates are far from guaranteed, so (using financial terms), consider these a "risky" investment on the part of your money, and, just like the stock market, don't invest more than you can afford to lose.
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