GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Do you buy traffic? Save money. Reasons why you should NEVER buy from traffic brokers

G Sharp · 06-25-2002, 05:51 PM

Interesting THESIS. Analysis on the SUPPLY SIDE: Problem is, manufacturers often charge direct buyers more than they charge their distributors becuase the direct buyer does not have VOLUME purchasing power.

Think of it this way: If I have paysites that generate XX amount of exit traffic per day and it cost me YY amount to generate that traffic, would I sell it to a person who contracts for ALL of this traffic for a whole YEAR [the broker--distributor] or do I sell it for more piecemeal to direct buyers? Before you choose the latter option, note that there are a lot of costs involved in recruiting direct buyers, plus also customer service issues.

It all boils down to ECONOMIES OF SCALE--the larger the broker commits to distribute, the lower my costs, the more comfortable I feel in selling to him/her all my output for near the cost of production. I still make a profit and skip on the hassle...and rest assured on continuing demand.

Brokers, whether they broker real estate, stocks, or porno traffic, exist for a reason. They act as reservoirs of demand in a fragmented and dispersed market.

DEMAND SIDE ANALYSIS: Brokers build a reputation on their ability to deliver inventory. There is an efficiency built into a relationship where a party is specialized in sourcing, costing, and delivering supply in a consistent way. Sure, it can sometimes be cheaper to go to the supplier ourselves, but supply is not assured. Moreover, buying your supply from a broker benefits from the psychological dependence the supplier has on the broker. The supplier wants to please the broker because this person is a volume buyer, so the supplier is more willing to please the customer as opposed to a scenario where the customer approached the supplier directly. Unless you're HUGE, you are a one time shot to the supplier and service/quality may suffer.

So based on an analysis from both the Supply and Demand side of this economic relationship, the broker is a necessity in today's economy--whether online or offline, whether adult or mainstream. To use a final historical analysis, there have been brokers for thousands of years, the dynamics discussed above worked 5000 years ago as well as they work today.

The broker is here to stay.

06-25-2002, 05:51 PM
G Sharp So Fucking Banned Join Date: May 2002 Posts: 1,343	Interesting THESIS. Analysis on the SUPPLY SIDE: Problem is, manufacturers often charge direct buyers more than they charge their distributors becuase the direct buyer does not have VOLUME purchasing power. Think of it this way: If I have paysites that generate XX amount of exit traffic per day and it cost me YY amount to generate that traffic, would I sell it to a person who contracts for ALL of this traffic for a whole YEAR [the broker--distributor] or do I sell it for more piecemeal to direct buyers? Before you choose the latter option, note that there are a lot of costs involved in recruiting direct buyers, plus also customer service issues. It all boils down to ECONOMIES OF SCALE--the larger the broker commits to distribute, the lower my costs, the more comfortable I feel in selling to him/her all my output for near the cost of production. I still make a profit and skip on the hassle...and rest assured on continuing demand. Brokers, whether they broker real estate, stocks, or porno traffic, exist for a reason. They act as reservoirs of demand in a fragmented and dispersed market. DEMAND SIDE ANALYSIS: Brokers build a reputation on their ability to deliver inventory. There is an efficiency built into a relationship where a party is specialized in sourcing, costing, and delivering supply in a consistent way. Sure, it can sometimes be cheaper to go to the supplier ourselves, but supply is not assured. Moreover, buying your supply from a broker benefits from the psychological dependence the supplier has on the broker. The supplier wants to please the broker because this person is a volume buyer, so the supplier is more willing to please the customer as opposed to a scenario where the customer approached the supplier directly. Unless you're HUGE, you are a one time shot to the supplier and service/quality may suffer. So based on an analysis from both the Supply and Demand side of this economic relationship, the broker is a necessity in today's economy--whether online or offline, whether adult or mainstream. To use a final historical analysis, there have been brokers for thousands of years, the dynamics discussed above worked 5000 years ago as well as they work today. The broker is here to stay.