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Originally Posted by andrej_NDC
??? only exclusive content is quality? What has is to do with quality of the content?
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No, don't misunderstand that. There is a ton of content out there that is not exclusive and is still REALLY done right. We even use some of it within sites, etc. to help with retention.
I was merely replying to the statement that exclusive content tends to retain better, if the surfer expects and recieves more exclusive content on a daily update basis.
So while on the lines of content, we subit hundreds of galleries, and one thing has proven to be true. We have all thumbed through galleries looking for that perfect one to host, the one with the perfect 10 chick with every body part just hand molded my God himself. It amazes me how often the other girls convert more, not seen as much different tastes, etc. who knows.
One man's trash is another man's treasure I would presume.
Another thing to focus on that was commented on in this thread was the factual basis of whether or not the company would make more money with the same net profit margin such as $5 per memner to the program. If we are gonna nickel and dime it, than I think we should break out the pennies too.
So, just a few things that work both ways (for and against) for the program:
For: Lots of programs have bandwidth agreements in place that they are not fully utilizing, such as pay X amount per MBPS, lets say they are currently at only 100 joins a day and utilizing 1/10 of X, that means they could increase their usage 10 fold before they would incur additional charges. (sorry, I'm trying to keep something simple, that is hard to keep simple). So things like that will work in favor of the company, but not to the extent where anyone is getting their pockets lined. Content costs remain relatively the same in regards to updates and keeping the surfer on the site, just remember the program will need to eventually add new sites or new niches to continue to grow.
Against: Increased liability and legal issues. It is normal to spend a grip on bookkeeping and legal. We notice substantial increased expenses in regards to the amount of money we pay for bookkeeping as we grow, audit work, legal work, and pretty much everything in the accounting department. As any American knows, taxes on a company with so many transactions, and such a large amount of gross revenue, can be very complicated, and our CPAs that prepare our returns, don't discount based on the fact that we have a bad day. Imagine the sheer amount of transactional paperwork that is compiled with just 100 joins a day...now multiply it, not 10 fold, but lets say 3-4 to be safe.
There is money to be made if numbers get crunched on an hourly basis, but its like a 8 year old, you have to babysit it. It is common occurance to be on the phone with Alex at 11 PM, or 4:30 to get a second opinion on Unique traffic or which processor we should switch Nats over to for a better convertion, etc.
You name the problem, and I'm sure we have had it site related at some point. Interested to see what you guys think....