Welcome to the Mclowd Community Newsletter.
Less than a month on, Superhero has onboarded 10,000 customers as of Monday, with a growth rate at times over that period of one sign-up every 20 seconds.
‘Australia’s Robinhood’ signs up 10,000 investors in three weeks
Introduction
As per the above quote Superhero has taken the online broking space by storm.
That new market entrants can now disrupt incumbents over time periods that are measured in weeks rather than months or years illustrates just how quickly deflationary expectations are becoming embedded throughout the economy.
With those expectations baked in, the deflation will now feed off itself, snowballing and accelerating wherever and whenever globally-defined marginal cost equates to / approaches zero.
The D Generation
For now Superhero is focused fairly and squarely on Millennial investors, a cohort who should be renamed the D Generation.
This is a group who have grown up in a Zero Marginal Cost world.
As such:
- They could never imagine paying for an international phone call
- They would be very unlikely to pay $5 – $10 for a magazine (when they can get the same content on social media for free)
- For the same reason they are unwilling to sit through ads on free-to-air television
- They are more comfortable paying for access rather than being burdened with the responsibility of ownership (perhaps understanding on some level that by their collective behaviour they are making incumbent capital inherently vulnerable)
For them Deflation is part and parcel of the economy, and in the future they will be unwilling to pay for:
- Energy
- Software
- Information
- Education
- Transport
- Communications
In fact, they will be reluctant to pay for any good or service for which they believe the globally-defined marginal cost is zero.
Conclusion
Superhero charges $5 for an online share trade, some 50-75% less than incumbents (although understandably in start-up mode they do not yet provide a functionally equivalent platform).
But just like Mclowd, that pricing sends a very clear signal to prospective members of the Superhero Community:
Join with us and 50-75% of the benefit of our success will flow to you in consideration for you joining us on our journey.
At the expense of incumbent vendors
And looking at the statistics, there are more and more consumers who are hearing that message loud and clear…
Regards
Ashley Porter
Managing Director
Mclowd Pty Ltd