Quote:
Originally Posted by Robbie
They had a plan. Build up an amazing presence on the internet and create a huge database of customers and then sell it to a big company for a lot of money. Brilliant actually.
But now the reality sets in for the new "owners". All of those monster sized pre-paid ad spots on big traffic sites costs a lot of money. ROI was bad enough on legit sites the last 4-5 years, but now for the last 2 years they've been dishing it out to torrent sites and tube sites full of stolen content and full members areas.
That traffic is massive. But when you bottom line it to the logical conclusion...it never converts into an actual sale. Just a lot of numbers.
So they keep shelling out a huge monthly advertising budget for nothing. Especially since every human being on the face of the Earth already has a free profile on adultfriendfinder
It has been a tremedously profitable business model, but like a lot of things it has run it's course. Time for AFF to adapt. Shouldn't be hard, they are the biggest damn thing in the internet so the potential is there. But on the other hand they are such a big ship, it may be hard to turn her.
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You write too much and don't read enough.
It has been explained a couple of times already.
The debt doesn't come from a bad business model, or AFF being unprofitable, but from the purchase itself.
The debt has been dumped on AFF's books and now cash needs to be raised to pay the previous owners. AFF is having to pay for AFF.