One of the huge problems many have about Online Adult is the narrow view they have of the industry. They know only online porn from their perspective. Fabian quoted Private's accounts as an indication of the money offline made. Private, well the part he quoted were just producers. He's not alone in this, it's a common mistake.
The places to look for the turnover of offline porn is the accounts of the retailers. Shops, Cable, Hotel Chains and Phone Sex. Magazines were included in the shop sales and often not porn shop sales.
Prior to the days of "I don't have to buy porn, it's free."
Selling a single DVD title for $30 10,000 times world wide wasn't abnormal in the days before online. Yes $300,000 for a single title. That's the world I knew. Shop chains made whales look like minnows. Madalton thinks they made their money selling novelties.
So when I went to my first Internext, I was coming from that world. A world where they didn't throw lavish parties parties for anyone with a badge. A world of businessmen. Sometimes a few crazies, but still most were hard nosed businessman. Who could spend the right money to get the right content, shop premises, etc. Spending $1,000 for a set non exclusive was a breeze, $2,000 in the US for the same set. $25,000 for 5 BG video scenes for the EU license to sell to shops, same for the US. Leaving the producer with Cable rights and set rights if they shot one.
Then I step across the corridor to Internext and meet all the big talking guys who promise me the earth, but want a rev share deal on our content. They can't or wont pay $300 for the online license only.
Or the biggest program of the day who wants a studio in Europe offers me $50,000 a year for me and Eva.
Now think of Perfect Gonzo, Mat Art, Party Hardcore and a few more. The thing that separates them is their content. More cold of been in the level, if the could or would of invested in better content. some could of negated the extra investment by selling to offline.
No like paying affiliates 50% and up then giving them every tool imaginable to flood online with free porn. Paying the lowest possible price for the product was always the right way. Because if you had the traffic, someone would sign up.
And that's why I look at some of the posts here and thing WTF! And so many who don't have the same knowledge and view of the whole porn industry as I do, think I'm wrong.
And yes you need traffic. But you also need something that separates you from 1,000s of other sites. And so many don't so they leap frog each other in their haste to give away free porn. And pay affiliates $100k a year to send traffic.