MagicJack work by plugging the device into a computer's USB port. Nagicjack features an RJ11 jack for connecting a traditional home phone. The service supports caller ID, voicemail, voicemail-to-email and call forwarding.

The device works when the computer is on and will forward inbound calls to a cellphone if the computer is off.

The company's strategy is super-low-cost calling. After the first year is up, it costs $20 for a full year of nationwide, all-you-can-dial calling.

Magickack originally was designed for business travelers. However, with the current economic climate, people are desperate to get rid of their landline phone. The most MagicJacks have been sold in Florida and California, respectively, where economic times are tough.

Magicjakc have also been used by retirees who are looking to minimize fixed expenses.

The company next strategy is to sell Magicjac as a hardware device and not a service that provides a retailer with recurring revenue when a calling plan is activated.