Quote:
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.
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.
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)
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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Yes the same rules apply, if you give the product away to support advertising the return isn't going to be as good as selling the product.
If you made a profit from your traffic spend, investing even more is easy. $500 a month could be $5,000, which could be $50,000. And you would have more money to invest in more content, sites, etc. The problem is paying enough for the content to make the traffic profitable. A small number of companies can do that.
The problem has always been the porn industries obsession in traffic being the answer to everything. We see that here with someone saying Thommy's 404 page gets more traffic than me content stores. Who cares how much traffic one gets if it buys nothing?
So far no one has come up with figures on the CTR, conversion ratios and price sits get for traffic. But I guaranty it's not enough to pay for content production and a higher BW charge. Because an industry that boasts a $2,000 return on a $20,000 investment isn't making enough on the billions of hits it gets.