The Underpants Gnomes’ Business Model

On a mailing list I’m on, there’s been some discussions of a particular business strategy. I didn’t know, but this is the business model of the Underpants Gnomes:

1. Collect underpants
2. ?
3. Profit!

This formula is frequently sarcastically applied to Internet businesses, such as:

1. Build a site with rounded corners
2. ?
3. Profit

You’ll find the gnomes in episode 17 of season 2 of South Park. Niall Kennedy has kindly collected an explanation and a video clip. Caution: Kenny may die in the aforementioned clip.