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Originally Posted by The Porn Nerd
Well I agree with most of what you said but I think your views on paysites TODAY are outdated. Perhaps you are applying your experience back then to how it is now.
Of course "big" paysites that want to invest 100K+ in new content will have a tougher time recouping that investment and it may well take years before they do. Piracy is a huge issue if you are sinking that kind of money into content production.
However, there are many ways to skin a cat (and be profitable NOW and in the future). Expectations must be reset, as with everything else. And the scale has to be reduced (from 50+ employees down to a handful). But with automating being much better today it is possible, through scripting and outsourcing, to be very profitable. You just have to adapt (or die).
I am like a Hollywood Agent. I make a % off every Membership I sell. Anywhere from 25% - 100%. So that's why I have so many "clients" (websites) and keep adding new ones. Remember I started this madness in 2009 - when paysites were DYING. So I had to be creative, especially because I had only $750 to start (a loan from a friend!).
The biggest challenge for your clients will be an ever-decreasing ROI, CTR, etc. That is inevitable.
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How many of todays Tube, free or pirate sites could make a living with B/W at $2 a GB?
Porn companies made a very good living with porn at $40 for 5 scenes. In restricted markets. So the delusion that everything
has to be free is wrong. The only thing supporting free porn is B/W at such a stupidly low price. The webmasters claim my days will never come back, they would if the consumer was forced to pay and with the global reach of the world wide web. The effect would be glorious.
How many are opposed to Net Neutrality where big users have to pay big prices? Why are they against it?
On another note, you would have to shift the focus of your business from buying up cheap to creating your own. By yourself or a shooter. But is that so hard to do?