Author Topic: Shopify a get-rich-quick scheme and dirtier than Herbalife  (Read 297 times)

rcjordan

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Shopify a get-rich-quick scheme and dirtier than Herbalife
« on: October 04, 2017, 09:40:16 PM »
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Shopify Inc. tumbled the most ever after Citron Research said it was shorting the stock and alleged that the Canadian e-commerce company’s rapid user growth was based off customers who would never become sustainable businesses.

https://www.bloomberg.com/news/articles/2017-10-04/shopify-tumbles-as-citron-calls-company-get-rich-quick-scheme

I'll add that our Shopify threads have consistently been spammer magnets. So, I'd suggest that newbie members not make their debut in this thread --Drastic has been edgy lately.

ergophobe

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Re: Shopify a get-rich-quick scheme and dirtier than Herbalife
« Reply #1 on: October 04, 2017, 11:14:37 PM »
Seems a little overblown

- people make money not by having a viable biz, but by selling Shopify... like Amazon affiliates
- has rarely turned a profit... like Amazon
- stock is overpriced... probably so. But as a user, do I care about stock price? Unless the company is selling more stock to raise capital, what difference does it make? It's somebody else's money.

I have put two shops on Shopify, both for businesses that are most definitely small (both around $200,000 to $300,000 per year) that are side ventures for folks who otherwise have full-time jobs and don't want to be bothered with having a developer on staff for all the security updates and such that go along with running your own Magento, Woo Commerce, Drupal Commerce or whatever store.

I think Shopify will survive this and I think they've been right to pursue a strategy of deficit spending to grab market share and build a large base of recurring revenue through Subscriptions and Merchant Services. And despite what the guys says in the video, Merchant Services are a real thing not some Herbalife smoke. Basically, that income, as I understand it, is mostly from providing credit card processing and shipping services.

Also, Shopify is working to cut the amount they pay out in affiliate commissions. To keep your recurring commissions alive, starting this year, you have to bring in a new customer at least once every 12 months or you go "inactive" and they cut you off. I'm going to really miss that $35/month.

Mackin USA

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