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?

  

Related Posts

• Prosper.com Underappreciated Listings This is the first installment of ProProsper's new listings via RSS feed... Under appreciated listings are AA-E credit grades with an interest rate greater than weighted average with the percent funded < 20% with 5 days remaining, < 50% with 3 days remaining, or < 80% with 1 day remaining.......
• Prosper Ordered to Cease and Desist by SEC http://www.sec.gov/litigation/admin/2008/33-8984.pdf It appears to me that the ruling is that they have been selling unregistered securities without a license.  What does that mean for the lenders?   Doesn't the board and company officers have some personal liability too? There is some discussion at prospers.org: http://www.prospers.org/forum/prosper_order_to_cease_and_desist_by_sec-t10903.0.html No one seems sure just yet... SEC: UNITED......
• Prosper.com Lender Game — Retireme99 Initial Update — 10.16% to 14.88% Retireme99 wrote his own intro: I started lending in May 2006... let the money sit for awhile to see how it worked... then got back into it more actively recently.  Looking at my results I have been happy that only two loans have gone 1+ months late.  I have another......
• Prosper Debt Sale Offer Roughly 0.93%-4.83% On Friday, Doug Fuller gave an update on the debt sale. Synopsis:  Prosper put the bid file on an auction site, 8 bids received, all the bids were very disappointing, Prosper has not accepted a bid yet, and is exploring options for getting a better deal. When asked how disappointing......
• Update: RateLadder Prosper Listing Request Reaches 100% Funded Sometime late afternoon on Wednesday (1/30/08) my loan reached 100% funding.  This is a critical first step in getting a Prosper loan. Without reaching 100% funded you cannot get a Prosper loan.  Reaching 100% funded should be the 1st goal of an Prosper borrower and the tools for reaching 100% should......

Related Websites

• How much are you paying... to have someone else write a few checks for you? I'm talking about escrow accounts, which are accounts that mortgage companies use to hold the money they've collected to pay property taxes and insurance on your behalf. They are also allowed to keep a cushion of 2 month's worth in......
• Twitter won't let you be a total sheep Remember when you first signed up for Twitter and started following people? Eventually you realize that one method to build a following is to follow as many people as possible hoping that they'll follow you back. In theory, that works but it doesn't last forever. Twitter stops you at 2000......
• Should You Punish Greed and Stupidity? According to Reuters: A New York man who discovered that millions of dollars had mysteriously appeared in his bank account, and withdrew more than $2 million, has been arrested on charges of grand larceny, prosecutors said on Wednesday. Benjamin Lovell, 48, pleaded innocent on Tuesday to charges that he withdrew......
• Powerball 5 numbers hit from last 4 draws Powerball Australia is drawn once a week, 5 balls from 45, and 1 Powerball from 45. There are 55 million combinations possible, so tracking this game is a long process, over years. At 52 draws a year, it is possible you may not see a particular combination hit for a......
• 10 Things to do without in 2010 [/caption] Ten years ago, most homes relied on dial-up connections to access the Internet and iPods, flat-screen TVs and the Nintendo Wii didn't exist. In 2010, consumer should expect to see more revolutionary products supplanting old mainstays. In media, DVDs, books, newspapers and magazines will continue to lose ground to......

Online Stores

• Tee Times Green Fees Golf

If you liked this article, vote for it on del.icio.us and stumbleupon.


Categories:

Prosper.com

Tags:

azerbaijan, mozambique