InPhonic

The company generated revenue primarily through commissions and bonuses from carriers like Verizon Wireless, Sprint, and T-Mobile for each new customer activation that met specific criteria. Its core strategy involved subsidizing handsets through complex rebate programs to attract customers away from traditional brick-and-mortar stores. InPhonic operated through its flagship consumer-facing website, Wirefly.com, and also managed private-labeled e-commerce sites for major partners, including Best Buy, RadioShack, and AOL. This strategy led to a period of rapid expansion, which included an aggressive string of acquisitions of smaller competitors like Simplexity and A1 Wireless to consolidate its market position.

This rapid growth culminated in InPhonic being ranked as the #1 fastest-growing private company on the Inc. 500 list in 2004, the same year it launched a successful IPO on the NASDAQ, raising over $100 million. The company attracted a high-profile board, including former Apple CEO John Sculley and former Vice-Presidential candidate Jack Kemp. However, the aggressive growth strategy, financed by debt, proved unsustainable. The company struggled with profitability, and its complex rebate programs led to consumer complaints and lawsuits. Financial reporting issues surfaced, leading to significant restatements of earnings, the resignation of its CFO, and a sharp decline in investor confidence. Faced with mounting debt and unprofitable marketing expenditures, Steinberg resigned in 2007, and the company filed for Chapter 11 bankruptcy protection shortly after. The company's assets, including the Wirefly.com brand, were subsequently sold to private investors and used to launch a new company, Simplexity, in 2008.