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Originally Posted by thommy
paul, listen - i will give you a short explanation of marketing.
a market size is the result of a multiplication where is the number of buyers before the x and the price after the x.
no matter if you increase the number before or after the x it will have a higher result.
a porn movie and any digital good that you are able to simply copy have only ONE price - these are the cost of production. it is not the same as a salami sandwich that you have to produce for each single buyer.
what kind of products are promoted on this video doesnīt matter. we have already so many options with products that do not care to advertise in adult. especially dating, gambling, enhancement, cams, amateurs, ebooks are buying more traffic as any network have but we do also have buyers from the very nonadult world who start to understand that wankers are consumers.
even if this number is not THAT much yet there are again thousands of mediabuyers with nonadult product pages where all this products that we do not have yet directly are promoted and sold. the products do not want to be visable on a porn site but they do not care where the shopsite get itīs traffic from and here we are in another buyer market that did not exist 10 years ago.
on top of that every smart advertiser (and i would say 10% of them are already smart) is not really dependent on the sale of the product that it advertises - this is the reason why many product advertisers are calculation on single opt in.
marketing is above the product - the value is in the connection to the consumer and keep this connection alive.
if a marketer does have this connection to a consumer, he is able to sell him ANY KIND OF PRODUCT later. and this makes a simple emailadress or phone number MUCH MORE valuable as the sale of the product this user was originally catched.
as the internet (and especially the adult internet) is not a place where 2 or 3 big players getting all - you have to rethink the strategy of production. you will not be able to find enough buyers for a 50 dollar video but you will be able to find thousands for 2,50.
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So here's my version of marketing advice.
Selling to 1-20 is great
Selling to 1-200 is good.
Selling to 1-20,000 needs 100 times the quality traffic.
Selling to 1-200,000 needs 1,000 times the traffic.
Selling 5 @ $30 is good
Selling 500 @ $30 is bad.
Industries that don't give the product away are doing great online, industries that are giving away for free aren't.
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but you can also do a very other calculation by assuming that this video can be served to 100 million visitors for free. if each visitor "pays" indirectly though advertising only 0,0005 US the final market size for this video is not 4.000 but 50.000 dollar.
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Show me the video that gets 100 million views to make your example prove itself. Show me the Tubes sites that can afford to spend $60,000 a day to update their tube site. As the average view rate is less than 500,000 you make $250 a video, which doesn't support buying the video.
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so in fact the market today is MUCH bigger as it was before - just the always yesterday people like you did not catch this ball and swim with the stream - instead of that you are praising since years that the stream will go back to the old direction - but this will NEVER happen because too many people making too much money with a much bigger market as the one you are still dreaming from.
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Yes we now supply more porn to more people for less profit than ever before.
If the market is doing much more money than it was, Tubes would be making their own content to be exclusive. We're giving it away to sell ad space because Tubes can afford to with free content and very low priced hosting/BW. But they can't afford to with only making $250 per video
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so in fact the value of this video can be calculated based on the numbers of buyers and the price they are willing/able to pay for it.
in this case you might produce a video for letīs say 1000 dollar and sell it for 2000 or 2500 to someone who will hopefully make 4000 on a very very long term by finding 1000 customers who want to buy it for 4 dollar.
of course it is not sold to ONE buyer for 2500 dollar but maybe to 2000 buyers for 2,50 dollar.
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Yes I've used you calculation with the real number of views to get the real picture.
If you were right, Tube sites would be buying content for their Tube sites or for a members only area. They're not they have to feed off free scenes, because you're wrong.