Thursday, April 8, 2010

worldstock doing good for now, will cash-out later

If Overstock.com's "Worldstock" was a 501c3 charity separate from overstock then it would have a lot more credibility as would the ceo....case in point the company "world of good" a for-profit social enterprise that gave a lot of money back to its
artisans....recently sold to ebay for millions, obv the owner/"do-gooder" kept
it as a for-profit so he could sell it later an make a fortune....the ceo of
overstock knows this well....be a do-gooder now and cash out at a later date- he
is a self-described capitalist....all they see is $$$ no matter what spin he
puts on it. He sugar coated worldstock very well to cover this up for the
average consumer and to get more volume to his site....yeah it appears legit
now, but he has alterior motives that are less "do good for the world" and more "do
good for himself and overstock".

I even question his numbers.....example he states he gives 70% of REVENUE back
to the artisan. ok, so if I buy a 10.00 knecklace from worldstock he gives back
7.00. It doesnt add up, even if he is getting his goods fronted for free from
abroad...the shipping, the warehousing, the cc fees, his staff, his marketing,
accounting, etc etc etc the list is endless....3.00 wont cover this.... on top
of it all that 3.00 minus biz expenses gets taxed by the us govt....i dont even
think he can give away 7.00 and only get taxed on 3.00...there is a limit that a
for-profit enterprise can claim as a tax write-off and its below 50%...im not an
accountant but i know this to be true.

Even if worldstock is breaking even (through the use of overstocks resources)
and doing a great thing for the world....the ceo sees the light at the end of
the tunnel and that is $$$. Either sell worldstock, or change it around to make
more money after it gets more traction/volume and becomes a international
brand....Id also like to see his numbers on his wholesale items....i doubt
little of the wholesale revenue goes back to the artisan that created the
product.

Moral: Never trust a capitalist. Especially one that claims to be a do-gooder.

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