Quote:
Originally Posted by Pleasurepays
its always ending and those that are worried about it are always willfully ignoring the fact that many are growing and thriving.
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well, you're right to some extent. However, it doesn't mean those taking the bad part shouldn't be worried. I mean, if you have a program and start to lose and lose I bet you won't care at all if someone else is winning, you'll pay attention to your pocket.
In today's economy, losing a 0.01% of the whole market could mean losing 10, 20 or 50% of your income.
See, there's a fluctuating mass of money which will represent a certain market. In example, people will spend their money in housing, food, clothes, whatever..... and entertainment. Thus, adult market has a given share of entertainment and entertainment has a given share in global economy. More or less, it stands the same (despite what most people would think, people doesn't like to cut much on entertainment, however, bigger or smaller, there's a cut), but if the whole mass of money is reduced, it lowers the amount of money of any market niche. This way, it could perfectly happen that your sales increase and you have better conversions, yet you're winning less in absolut terms.
An easy example: let's say I had 10000 uniques and made 10 sales. My market share was 10% on a market of $100,000. I'd be having 1:1000 conversions and getting $10,000
Now, let's say the total market is reduced to $80,000. If my share keeps equal, I'll get only $8000 (20% less), so even if my conversions grow 10%, I'll be losing money as long as my conversions don't hit at least a 20% growth.
Obviously that's a very simple example that isn't taking in mind recurring sales for the sake of easy explanation.
So yes, you'd be growing in relative terms and still losing in absolute terms. Problem is that market is reduced not only in absolute terms (as in total available money) but also in relative terms (as in shares of market). The thing is that if you were barely making it with a better economy, you'll be losing for sure with this economy.
So, 2 possible solutions are: a) having something new and get a market share on novelty or b) maximize what you already have and keep the money in your pocket.
There are other solutions, but IMHO these are the more easy to achieve with the lesser risks (in option
a) it will depend on the "new thing", of course, but adult industry is usually an industry where you can launch new stuff at low cost)