Quote:
Originally posted by FlyingIguana
this busines is not all that lucrative. how much is bezos worth compared to the ceo of the top adult sites? lack of an ipo market for online adult companies is a major reason for the difference, but it just shows how this industry is not very lucrative at all.
every industry has to deal with competition, but to say people shouldn't complain about the insane amount of competition in online porn is just plain stupid. the percentage increase in new entrants is most likely outpacing the growth rate for the industry. i think this industry, especially english language adult sites is coming close to the maturity stage, may actually be in it now, and thats not very good for profits. i believe there are certain segments in this business that will have a higher growth rate and thats where the better margins will be, but as the profits start to roll in, more and more people will run after those profits and it will drop margins.
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My point is the people that have been in porn for x number of years have had plenty of time to expand. You have to evolve with the times. If someone got in porn 5 years ago and ran it like most aggressive mainstream businesses are run they would be making profit from every aspect of it. Even on the bottom of the scale....Someone that was making $5000 a month profit submitting their own galleries could have expanded more. Hire someone to work with you, submit twice as many etc. From the time TGP's started catching on to now how many galleries could one person that wanted a chunk of the market be submitting daily? Of course profits with TGP's went down but the big players should be making a smaller percentage on hundreds of times more exposure, overall making more profit. For some reason people in this business don't try to expand like mainstream businesses. Imagine if Sam Walton had been into porn.
The ones that understand this will be OK regardless of where the industry goes.
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