I applied to be a tutor online through one of their ubiquitous Craigslist ads (60-70 Tutors Needed!). Within 24 hours I was able to schedule a phone interview. This was a typical screening interview and the interviewer was friendly enough, but it was still a bit annoying to hear the kind of feedback typical of VOIP when a professional headset isn't used and loud keystrokes on the other end. The line of questioning quickly turned to the minimum compensation I'd be willing to accept, and when my response didn't fall in line with the maximum rates set at corporate level for my area ($23/hr for certain subject tutoring, $25/hr for standardized test prep--this is in DC), the conversation ended promptly, albeit amicably.
I have no qualms about the interviewing process, but if you're an experienced tutor in a major metropolitan area, it's clear that they will take 60% or more of your pay. Other tutoring companies do too, but in return you get things like a dedicated classroom, commute to one destination, predictable hours, and a bank of materials to draw from. With Varsity Tutors, you get none of these things.
If they were really desperate to add 60-70 tutors in the area you live, you would think that they would exhibit a little flexibility in terms of wages. Also, it's clear due to cost structure that they really can't afford to hire the most highly qualified tutors. That isn't to say that the tutors who do work for them don't do a good job or aren't passionate about their work, it's just they can't attract the best tutors in the area (or at least ones who are aware of their worth).