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Originally posted by ldinternet
I can't be assed to discuss this, but online porn has been around for a while, however... its only been strong since around late '96 early '97. Each year, it is diluted more and more. A 100k site surely doesn't make as much money now as it did a few years ago... cheaper internet access lets 'poorer' people onto the net, more free porn, more competition, etc etc.
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Yes that's true, you earnings per 100k uniques are much lower then a couple of years ago. But in the meantime you could have mutliplied your traffic by 100 times. A site who received 5000 uniques a day 3 years ago, can have 500,000 uniques now. And whith good automation your profits can be much higher. The big players do have a higher value than the small ones.
Quote:
Originally posted by ldinternet
A site is worth what the owner thinks it is worth, but only to the owner themself... for everyone else, its worth what they are willing to pay for it. Eight times yearly profit is extreme... not to forget, this online porn thing has only been strong for around 5 to 6 years... if you're Nike, 8 times yearly profit may be cool because people aren't ever going to lose their feet. If the business is something like Color Climax or Private, then 5 to 6 years may be all good. But for online porn, the 6 month rule is based on a balance of risk, and urgency of sale.
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Yes the risk certainly plays a major role. You take as example Nike, but that's not completely fair as Nike is valued at 30 times Price/Earnings. Internet Research companies are reporting that most surfers don't search that much anymore, but are only using their bookmarks. If you don't do any stupid things you can keep your visitors for a long time. And I don't think that online porn will be gone in 10 years. You know how long there are already Adult video stores? And humans always would like to see porn.......