Quote:
Originally Posted by potter
4. Pricing
For the record, I have three memberships to adult paysites. Paysites I could easily get a free membership to but simply decided to purchase one instead. Because these sites run off an intelligent cutting edge pricing plan. The most basic understanding of business model pricing would be when the economy tanks, your market is saturated, and the technology makes it easier for you to provide. Your price goes down. The complete opposite has happened through out the years though. Instead greed and idiocracy has taken over.
Porn is everywhere, the internet is just flooded with porn. Remember, we went over this earlier. Even a lot of micro-niches have more competition. This means your price should go down! The economy is also doing a lot worse. People still want and are willing to pay for porn though. However your price should go down, not up. Lastly, the technology for you to provide porn online has become better and more accessible which makes it cheaper. The cost of owning and running a website is getting cheaper and cheaper. Therefore it would only make sense for the prices of the product to reduce as well.
However in the industry, we've seen an increase in subscription price across the board. Instead of simple supply and demand, and competition taking over. Pure greed has taken over. We see one paysite selling their subscription for $25 and feel if they can charge that we can try for $30, someone see's that and tries $35, then $40, and so on. It's literally backwards. Specially when you consider most are still selling a product that runs on a system two decades old, and have no innovation to their website or business model.
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Price is the only thing keeping this business together, once paysites start offering lower prices it will all fall apart. Not only everyone will have to compete with tube sites that offer stuff for free, they will have to compete with idiots who sell it for cheap. If you start competing based on price, in a few years price will drop to dirt cheap, and everyone will be scratching their heads trying to work out how the profits dropped from $100/member to $5/member...
