Just how much does Prosper.com make?  Since opening doors for business in February, they have facilitated the lending of very close to 30 million dollars.  (For this evaluation let’s call it 30 million exactly and ignore late fees.)  I grabbed a graph from Eric’s Credit Community to illustrate the progress of the year.

Prosper.com charges the borrower 1%: 300K.

Prosper.com charges the lender 0.5% annually: 150K

(I realize the lender amount is actually slightly less, but given the back loading of this year’s loan I think it is only slightly inflated.)

On top of this they also get late fees in several flavors.  Did I miss anything?

Are they making interest on the float? 

Now I don’t know how many people work at Prosper.com, but unless the pace of loans increases I would guess profitability is at least 3 years away. For example, let’s say they have 15 people and on average they make 100K each (I think I guessed low on both). That 1.5 million per year in salaries alone. Let alone benifits, office, and datacenter costs.

So unless I missed something large (interest on the float?) I think they are at least 3 years away.  On the other hand, once the ship is sailing how many people are really needed to steer?

  

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