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Originally Posted by The Porn Nerd
Yes I get what you are saying and it proves one of my points: that the law of "big numbers" applies when it comes to media buying and, really, the product being sold does not matter. It could be porn or kitchen utensils.
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thatīs more or less correct
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But I highlighted what you wrote above as an example. I can think of many, many ways to make a $2000-$3000 profit without spending a dime (or very little) since that is a low (but good) achievable figure. If I was going to invest 20-30K in order to get that little amount I would rather spend it on content, more sites, my own traffic network, reviews, etc etc. Because at the end of all that I would actually HAVE something. With the media buy model 90% is 'wasted' expense. A lot to get a little, not much bang for your buck, etc.
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and exactly here you see things wrong.
imagine you are a billionaire and you want to invest your money in something that is more profitable than stock market or anything else.
did you caclulate the REAL interest rate on that?
it is not 10% per month - so 120% interest per year.
it is MUCH more as this guys are playing again and again with the SAME money they have played the month before. so depend how much one will reinvest he will end up with such a huge profit as you can not even imagine or do in ANY other biz.
I know media buyers that have started with 10 k borrowed from the grandma and they play now with 100-200 k per month as they reinvested all in the first year and after that they reinvested the half of the profit.
there is no bigger biz around than that and this is why there is so many money in it.
ask a bank on what you can get 120% or more profit - they will not have an answer.
but ask a billionaire if he will invest on 20% and you know how to make money in this biz he will shit his money on you - always assuming that you know the business, the tools and the market
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Oh but I know what you will say! You can SCALE that 20-30k/$2000-$3000 profit, right? No not always. It's especially hard with paysites. And what it takes to do that is not always something, lifestyle-wise, a small webmaster wants to do (more employees, overhead, etc)
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YOU do not have to scale or invest nothing because you are far too late to learn
this tricky biz and as you need your time to maintain a product you do not have the time to learn it.
all what you have to do is to give this people who are doing this biz already the options they need and THEY will invest and not you.
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On a side note: I wonder if ALL content production suddenly STOPPED how long it would take for the tubes and ad networks to see a decline in traffic, views, revenue, etc? I am guessing, with over two decades of filmed content to rotate, the drop-off would be minimal. So does that signal an eventual end to content production?
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there is so much content around and it does not matter if it is old or new.
the number of content producers have multiplied in the past 10 years.
and those are the ones that are producing already for this market. they do not even need shops or something like that as they have a few 100 tubes buying a few 100 videos from them month by month - they just do not pay 50 dollars for a scene - maybe they pay 2 or 3.
i actually spend for licences every year around 100-150 thousand euro - and i am just a small clown -how much do you spend with your paysites ?
so no - this argument does not work as the biz is much too big already and everything is here. it is also not a big problem for the big tubes to open their own productions and resell the same content later to their own competitors (what is actually also existing already) you can either swim with the stream or wait til the stream comes back. but this will not happen.
i know that does not sound too nice but true words are mostly not nice and nice words are mostly not true.