Need opinions on a business model
Aside from ?Hello?, this is my first official post to GFY, and it?s a biggie. I am interested in getting some thoughts and feedback on an adult business model that I have created. The site is hottalking.com and our focus is on audio erotic stories. I think it has potential, but a set of fresh eyes is always a good thing.
The revenue model is similar to iTunes, where the stories are categorized into genres and the price for each is $2.95 regardless of the length of the story. The average length happens to be about 7 minutes. Every story has a description and a 10-20 second preview so folks can decide if they want to buy it or not. Once a story is purchased it can be downloaded immediately. I decided against a monthly membership model in order to give potential customers the freedom to pick and choose what interests them without having to commit to anything.
We grow content in the following manner: Folks can submit their own original audio stories to our site. (They must pass the quality standards outlined in the rules section). Each time a story is downloaded from our store, they will earn 20% of the fee. I am considering raising this to 40%. Currently CCBill is our gateway and PhantomCart handles the shopping cart. In addition, we have a group of independent contractors called the ?Hot Talking Talent Network?. These are men and women who have agreed to record stories on demand. We pay them $9 for each story they perform, plus 20% of each download. The $9 we pay them is funded through another really cool service we offer called ?Submit for Performance?. Basically this allows anybody to send us an erotic story in text format and a member of the talent network will perform it. The charge for this service is $20. So after the $9 we pay to the talent network member, we earn $11.
Since it is in everybody?s best interest that stories are downloaded often, we are in the process of creating a program called ?Meet the Voices?. This allows talent network members and other folks who submit stories to promote themselves on our site. Each person gets a teaser ad, plus a webpage dedicate to them. There is no charge for this service.
Sorry for the long-winded description. Does this sound viable? Anything I am missing or should consider? Any and all comments are welcome.
Thanks
|