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4) Too Much Competition
If Reason for Failure number 1) applies to you, chances are competition is a factor as well. If you are an affiliate and market sites that fall into the 1) category you also are affected by too much competition.
You are probably waiting for these statements:
There is too much free content available.
Everybody's got a video camera now and they all shoot porn, it just saturates the market (with crap).
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Define too much, in terms of economics please. C'mon even in a perfect competition market, businesses see operating profits.
Economic profits, above what the market should hold, are fleeting by definition.
But too much competition is a fucking cop-out. There's no such thing in any industry. There is just competition. You could argue that any competition beyond a monopoly is "Too Much". I would like to see some metric or definition for market saturation.
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In economics, "market saturation" is a term used to describe a situation in which a product has become diffused (distributed) within a market; the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
For example, in advanced economies an extremely high percentage of households own refrigerators (more than 97% of households) i.e. the diffusion rate is more than 97%, and the market is said to be saturated i.e. further growth of sales of refrigerators will occur basically only as a result of population growth and in cases where one manufacturer is able to gain market share at the expense of others.
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Are you saying 97% of surfers are familiar with their porn sources, and have all the memberships that they intend to buy? Shit not even nasty dollars has a 35% brand penetration. There's plenty of room for growth.
Strike #4 it's fucking weak.