This was a part of the equation when I decided to pursue traditional publishing instead of going the self-publishing route. I wouldn’t be competing against other authors for the attention of publishers, I’d be competing against an ocean of ghost-written get-rich-quick schemes and bots. Sometimes gatekeepers serve a real purpose.
I gotta imagine much of them weren’t actually successful.
You’re right. Any individual person going in for these scams is almost guaranteed to lose their lunch money. But from Etsy’s perspective (and I assume Imgur’s), they only need a tiny fraction of their sellers to get the jackpot in order to keep the money train rolling. If they can get a single dollar a month out of 20% of their users, that’s still a baby dragon’s worth of a horde every 30 days. And I’m sure they have other fees and hedges to ensure that even if you never make a penny in sales, Etsy still comes out ahead on you.
It doesn’t help that a bunch of influencers descended on YouTube one day selling classes for how to get rich quick with drop-shipping. A couple thousand gullible dipshits emptied their wallets and dumped a load of cheap crap onto Etsy, with product descriptions that read like they were written by Skaven.
Can we please keep the Reddit spam in the specific Reddit-centered communities? I’m trying to stop paying attention to Reddit.
I am not a finance guy; this is my kindergarten-level understanding of the situation:
When the interest rates were hovering down around 0%, it was a no-brainer for VC firms to shotgun money out to everyone who walked past their office building. Most VC money doesn’t come from some rich dude’s pocket; it comes from banks and hedge funds and other deeply-market-tied entities. If any one startup they’ve invested in can win the profit lottery, the VCers will massively beat the rate of return they’d get for anything else. One big success can cover a dozen small failures, and, anyway, a business isn’t a failure until it’s a failure.
Now that interest rates are rapidly moving higher, those startup investments are less of a good deal. VC money is more expensive. VC firms are starting to close out their positions on start-ups that aren’t beating them market, because they want to stick their money somewhere more reliably profitable.