JODIE FAWL / Lincoln Journal Star | Posted: Sunday, March 12, 2006 6:00 pm
Brandon Dupsky wrote the book on making money on the Internet, a book claiming he made more than $8 million a year.
But on March 4, his Lincoln company filed for bankruptcy.
Dupsky, founder and CEO of Sell2All, which sold consigned items on the Internet, co-wrote “Insider Secrets of an eBay Millionaire,” a selling system available for $197 from Internet Marketing Center since October 2005.
The U.S. Bankruptcy Chapter 7 filing did not estimate assets and liabilities of the company. Those are due March 17. Dupsky could not be reached for comment.
Former Sell2All controller Marvin Frank, who left the company in November, said he was not in a position to say whether company employees were paid before the bankruptcy filing. He declined any other comment.
The Internet Marketing Center Web site was still advertising Dupsky’s selling system as of Sunday. Internet Marketing’s CEO, Derek Gehl, co-wrote the “Insider Secrets” system with Dupsky. He could not be reached.
The Internet Marketing Center Web site includes the following statements about Dupsky:
n “Learn how a regular guy from Nebraska made over $8,000,000 in just one year selling everyday items on eBay …”
n “Brandon’s a pretty quiet guy … Not the type to seek out the spotlight or anything like that. He’s been perfectly happy to ‘fly under the radar’ for the past couple of years … all while building one of the most wildly successful businesses in the history of eBay!”
n “Brandon agreed to generously share every last tip, strategy, and secret he knows for locating hot products to sell on eBay …”
Sell2All, 2610 W. L St., sold excess inventory for companies through online auctions on the Internet, according to earlier news reports.
It got a percentage from the seller or earned profit by selling items for more than liquidation prices. Sell2All sold items including toys, shoes, electronics, tools and Tupperware.
The Sell2All Web site says the company ships items from 35 warehouses daily. It lists itself as one of the top 10 largest companies selling on eBay out of 49 million and claimed to have 10,000 auctions per week with more than 200 clients.
The company also did business as Back-Track, Bidmix.com, Closeout HeadQuarters, DropPro, Dropship HeadQuarters, Electronic Head Quarters, Network Mega Mart according to the bankruptcy filing.
Web sites for each of the businesses were not fully functional when visited Sunday. Sell2All had no items for sale as of Friday, according to eBay, the online auction house.
Sell2All sold items on16 Internet marketplaces, according to the DropPro Web site.
Sell2All’s 30 employees celebrated the company’s seventh anniversary on July 15, according to its eBay seller profile. Sell2All earned the Lincoln Chamber of Commerce’s 2003 award for fastest-growing company.
At least one creditor was not completely surprised by Sell2All’s bankruptcy filing.
“It was evident from the statements they sent us that they weren’t making any money on the product we sent them,” said Mike Duweling, controller at Heartland Hobby Wholesale. “It always looked like they were losing money.”
Heartland Hobby Wholesale wasn’t out much money, Duweling said.
“We’re talking a couple of hundred bucks,” he said. “It was kind of a pilot program. I gave them samples and thought this stuff is good if they can find a market for it. I was hoping we could liquidate product, but it kind of sizzled out.”
The company’s bankruptcy was more of a surprise to Darren Morton, owner of Mail Plus, 3201 South St.
Mail Plus operated as one of Sell2All’s DropPro outlets, Morton said. Sellers could drop off an item at Mail Plus and it would be listed for sale online.
“We were never notified (of the bankruptcy),” Morton said.
His store manager called Sell2All about two weeks ago to find out why they were unable to list an item, Morton said.
“They told us their server was down,” he said. “When we followed up no one answered the phones.”
He went out to Sell2All and found it locked up, he said.
“My concern was for our customers,” Morton said. “We have called our customers to see if they have been paid and they have.”
Morton said he is owed money for commission and postage.
“We’re going to lose money but we’re not going to lose customers or our reputation,” Morton said.
When Morton added the DropPro site at Mail Plus it was the first location in Lincoln where people could drop off items for sale on the Internet. Now, he said, there are five stores in Lincoln that operate the same kind of business.
“I think Brandon was ahead of the curve five years ago when he started his business,” Morton said. “It’s just conjecture but certainly additional people getting into the business had to have an impact.”
Attorney Bill Chapin represents a client who was renting space to Sell2All.
“They got behind on the rent,” Chapin said. “I don’t know what happened, but it was evident there was no money coming in.”
Dale Galusha was an independent sales contractor for Sell2All.
“It’s an unfortunate situation,” Galusha said. “It’s life with an Internet business. They can rise quickly and fall just as fast.”
Reach Jodie Fawl at 473-7235 or jfawl@journalstar.com.