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Originally Posted by LegendaryLars
not if you have your own merchant accounts  |
It still applies if you have a merchant account. 5% of $30 is $1.50.
So the processors are looking at losing $1.25 a member. How long do you think they will put up with that?
This industry is very reliant on the CC processing industry. Turn their profits into a loss and you will soon find your merchant account disappear.
This industry is a million (a figure I'm using) people signing up to buy porn on a regular basis. There are some who buy it as a one off but most are repeat buyers.
Your idea will not suddenly turn that figure into 6 million people, it will increase it but not enough to cover the whole loss.
Certain companies that support us need to make a profit to continue supporting us, Visa are not doing it for the pleasure.
So all your idea will do is reduce the amount of money in the business, less for payment processors, content providers and hosting companies. How long before they decide that putting you out of business will keep them in business?
We can try a few $5 or $10 sites as promos and specials, but you are talking about an industry standard that will result most surfers signing up to a few sites. That will be quashed very quickly once CC industry realise that every sign up you make they lose money on.
The payouts to affilaites would also kill you. You are assuming that you will make more money by retaining longer and signing up more. Well the retaining longer part of the idea will hit affiliates and the traffic market.
While a member is a member of one of these sites for a year, $60 worth, he's not going to be looking for other sites to sign up to join. Hitting affiliates, TGP sites and traffic sellers. How long before they wise up that you might be putting them out of business as well.
No real money to be made on upsells either, the surfer is being educated to spending $5 a month for his porn.
For your idea to work a surfer will need to sign up to 6 sites a month, don't see that happening.
But again thanks for a great thread, it started a lot of people thinking and discussing.