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Originally Posted by Paul Markham
No they can't spend us into an early grave and you saying this shows how little you know. Actually we could spend them into an early grave. They have to have those advertisers to pay their costs, their profit margin is slim and by reducing the effectiveness of their advertising they will become a drain on the sites supporting them. It might only take a 10% swing, but a 10% swing can be 100% of the profit. Or 50%. It's definitely not 10% of their profit.
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the live cam sponsors and dating sponsors make money by selling live interaction while getting traffic from tube sites that give your content away for free.
so they screw you over to make money
your solution of a free chat service to cut screw them COST you money, because you would have to pay the girls to chat for free. The arguement that some how it will result in so much lost business for the chat sites that they will stop advertising is just plain stupid.
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An additional revenue stream, like what? I think this industry has gone about as far as it can finding additional revenue streams. Easier said than done. But we are listening if you have any ideas.
Product placement. Such as? There are more companies who would sue us rather than pay us to use their products in our sites. Maybe the Pill, vibrator or lube companies will fund us all. In my experience of talking to these people at trade shows they're not even interested in giving away free samples for us to use in scenes. So maybe you know more than I do.
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paul last time we had this discussion i pointed out you did not understand q-ratio and that why you could not get product placement.
Let me put it bluntly since you don't seem to get it when i am nice about
You didn't get product placement because you are a moron
you were selling porn to guys, yet you tried to get a product placement for products that appeal to women.
the advertising value is zero (or almost zero), hense no one is willing to give you shit.
If you understood the concept of a q-ratio you would understand the value of product placement and would have approached sponsors who would benefit for your target audience
or
written a script that targeted a market that those sponsors cared about.
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Live interaction. Yes and spot on. It would not take much for a site to do live shoots or have live webcam girls inside the site. It could be a cooperation between the paysite and the cam site or it could be the paysite doing it themselves. From what people tell me cam sites don't upsell to cam sites as well as they do to other paysites, others might know different, so maybe a girl online for free to the members would be a good idea. It would need 4 girls a day to make it 24 hours. But it represents another cost to the sponsor and today the margins are so tight many can't afford.
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which is exactly my point as long as it is a loss centre for you your screwed, you have to find a way to make money from the live interaction, so if you give away the chat for free to retain your members you have to make enough money from the extra long retention to keep the payout the same. If that is not possible then you lose because the chat sponsors are turning a profit by charging for the chatting rights.
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Unless they reduce the affiliates payout, long term the affiliates will earn more, or spend less on support or promoting themselves. But we know how this game works. Sponsors that screw webmasters can make it all good by having 60% rev share, $100 sign up weekends or even 90% rev share on a target no one will reach. Or a sponsor who puts on a big party, banners everywhere or skins a board will get more than a sponsor who is taking the fight to the Tubes and asking affiliates to stand alongside him.
WELCOME TO THE WORLD WE MADE.
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but if the term lenght of payment was truely greater long term, that you could keep the persignup rates just as high and just make your money on the back end. but it does work like that as you so clearly pointed out. You need to find ways to subsidize the cost of production so that producing content becomes a virtually zero cost action (product placement, process monitization) and building in an live interaction into your content (voting, time sensitivity, fuck the members) so that there is an incentive to be a member of the site.