Budgeting for a porn site.
1,000 scenes = $20,000 (this is top end and can be a lot cheaper)
CMS = $3,000 (can be cheaper)
Servers = $1,000 (can be cheaper and increased as traffic grows)
Design = $1000 (can be cheaper)
Programs = $1,000
$26,000. Any business man will tell you a business will take 2 years to turn the corner into profit. So lets say $1,100 a month.
1 member DL a video scene costs 3-4 cents. Again a good price and falling. He will probably DL no more than 20 in a month. 60 to 80 cents.
1,000 members on a site for a month will cost in content and delivery under $2.00 a month per member. Now we need to add on processing. 30 cents at 15%.
Add on affiliates and everything they need and all of a sudden you need to charge $30 because Gator will not send traffic unless he gets $30 on average for every join. Plus hosting, galleries, banners, tools and big lavish promotion to affiliates. Not trying to single Gator out but he replied to my post.
The blame lies with us. For 7 years we have squeezed the product production to find more money for "traffic". When the major cost of BW fell we did not lower the price or our spending on it. We just gave more away for free to affiliates.
We have done everything we can to maintain an inflated price to pay affiliates. We have spent millions to get affiliates and continue to do so. And now we are suffering from people with a different business model.
WELCOME TO THE WORLD OF COMMERCE. The real world.