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Originally Posted by Nautilus
What "healthy nucleus" are you talking about? Sponsoring illegal tubes and profiting from it? That's some "healthy" biz model indeed lol. But even at that they're not as good anymore as they used to be - the damn thing is loosing both traffic and members. Check their financial reports (members base down 10%) and alexa stats (also way down from their hayday).
Not to mention the upcoming anti-piracy legislation (PROTECT IP Act) which will make advertisers liable for copyright infringement too unless the pull their ads off a pirating site. With that act implemented they'll loose a lion share of their traffic, and sales too, because in the age of facebook you can only sustain paid subscription based social networking site by massive (and false) advertising.
The damn thing is going to die, stock market has the right vision of it.
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no no no, the stock market investors who spend all day analyzing companies and their profit/ loss potential etc... are wrong and just don't like AFF because it's adult.
The AFF affiliates know better. lol.
Some nucleus they have there, with the bright idea to run a website called facebookofsex too.
Quote:
Originally Posted by iamtam
when they releases their information pre-ipo a couple of years back, they customer acquisition costs were higher than their total customer revenue. if i remember correctly, they were paying $125 or so to obtain a new customer, and on average they were spending about $100. that makes a huge gap to cover.
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I remember they were doing huge payouts to try to drive up sales and members to make the site look marketable for sale, the only sucker they could find was Penthouse, who after sinking ibill, had nothing left to hold onto to try to keep penthouse floating. Andrew wanted to sell AFF bad and wanted out, couldn't find a buyer and was ramping up payouts to try to make it look more attractive. He dumped it on penthouse, who promised them most of their $$$ from going public... basically they screwed each other. Having to drop the original IPO from 500M to 50M i bet cost Andrew and Lars a LOT of money. Hence why the debt is still so huge. If they could have gone IPO for 500M, they wouldn't be carrying much debt right now and would be better off. At the end of the day everyone will lose, Various Inc, Investors, people who buy the stock, and even affiliates.