The business model of these companies goes something like this... In phase 1, sell $1 at deeply discounted rates of 50 cents. Sell a lot of them to show tons of revenue.

In phase 2, sell $1 at slightly less disconted rates of 40 cents and show growth in margins.

In phase 3, establish monopoly but still sell $1 at 80 cents and show both topline and bottom line growth.

Finally, go belly up after not able to overcome the fixed costs in their business.