Startup Gizmogul Gives you Cash for Trash

Gizmogul Founder Stephen Schneider buys your unwanted smartphones.
3:00 | 12/30/13

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Transcript for Startup Gizmogul Gives you Cash for Trash
From life changing innovations to a startup that wants to pay cash for your trash can -- is mobile co-founder Steven Schneider joins us on -- hi Stephen how Ariel. I'm Rebecca I got a great New Year's resolution three UOK Kelly what does that. You should take all this cell clones. I act as if sitting at your desk -- com and sentiment it is no dot -- -- recycled you assume that I have authority doesn't esteem and well let me check the database here its name must use our competitor. -- -- OK so you have -- similar name actually tier competitor when you're Disney mobile why you choose such a similar name I'm curious about that. Well. You know. I don't know if you ever tried to buy a domain name nowadays. -- You take any random key string of letters ABC do you apply dot com it started taking. So we went through a bunch of different. Options and we came up with this great idea of being the leader. The you know cellphone smarts on recycling is industry. And another word for her cell phone as it is not alert out -- and so we took that certainly together its total coincidence that it's a similar actually -- I'm very very different from our competitors. So tell me what is it that you're doing how much money I get for example I'm not ready to trade in my Blackberry but if I works traded in what kind of money would you pay before -- -- What we do it on a daily basis as we search the web through were the current prices that people are hurrying and we try to. Hey at least five to ten dollars per -- -- more than the leading our leading competitor. For example if you -- to sell an iPhone. -- -- You know you mentioned gazelle -- suffering 375. -- iphones I've asked we would pay 410 dollars should and the reason we're gonna pay so much more than. -- is because gazelle has like a forty million dollar. You know DC funding so they have to that they have to account for a lot of that marketing budget when Nate. -- -- consumers for their devices. We're -- small family run an organization I started the business with my two Brothers. We don't. Have a ton of overhead in terms of marketing so most of most of our business comes organically through word of mile. So you're not gonna -- we don't have to cover the costs of those were you know outrageous marketing fees to. So you when your two Brothers if I -- to send something -- are the ones are gonna take a look at it determine how much money it's worth. And then tell me what it is and then send me that Shaq. Well. We won't be the ones actually. Analyzing your phone that's what my mother tell us. Your mom and without analyze. It to Al-Maliki. We have a full -- Employees we have about 25 people that -- -- And we have an entire team that deals just with. Looking at the phone in the wiping it in analyzing the total value of that crazy on the spot. And then we have another team if that phone is. As water damage or that ordered damages street -- cracked it still has value and yet we pass up that team that human services that phone. And reintroduces into the secondary market. In that secondary market that's where you have to be making your money where do you think the secondary market from a consumer's standpoint. Is the best place to -- I think places. Light. Amazon or eBay you're looking to buy a secondary phone that's used. You know you want to make sure that you have a reputable seller. Because so many people are. You know does not know -- speaking of your last segment there's nobody really policing. Or -- That industry online so you never know when you're dealing with -- -- we're we're in the process right now actually. Building and online. Marketplace to sell some of the secondary -- results and I think a lot of companies like -- -- during something similar to so. -- -- -- the entire process. Jack in terms of that security now. How much of that should be a concern to somebody boat sending new devices but also the person on the opposite and buying the device -- It's it's you do it should be a big concern to people. You gotta be careful. In this in -- where you're sending your devices and even though you may -- -- -- clean of the data you know through. Just a basic data wiped that you couldn't figure out how to do long line. Sometimes that data still remains on the boards and a company like -- is really taking great lengths to. -- -- sure our customers that when they said the device and everything is completely why do what we do is we send. We send all our customers a certificate of data destruction. With the I -- number which is the serial -- that device to assure them that their specific device has been totally wiped out before it's either. Broken down through arts and refined. -- are reintroduced in the secondary market. Steam and thanks so much for joining us don't forget the company isn't he is mobile and it's Stephen Schneider and his Brothers run and thanks thanks so let's not. -- -- -- -- -- You've got it makes -- happy new year -- you to.

This transcript has been automatically generated and may not be 100% accurate.

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