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Originally Posted by Kyo
Hmm. So, at $1500 a shoot, and each shoot producing 4 sets, that's $375/set.
A paysite updating once per week needs 52 sets per year; that's $19,500 for a year's worth of content.
If the paysite charges $25/month membership, it needs 780 *typein* joins/rebills per year (65/month) just to break even on the content alone. If you're running a 50/50 revshare for affiliates, you need 1560/year (130/month). And this doesn't count the costs of hosting, bandwidth, design, and management.
I haven't actually started up yet, so don't have a good feel for how many joins/rebills per month the average site gets. Not to mention how much bandwidth would cost per year for a site of the aforementioned minimum size. But, from my newbie perspective, that price point for content would cause me to avoid purchasing your content, at least until I'd been going for a while and could see my stats on joins/rebills and the prices I was paying for hosting/bandwidth.
On the other hand, I understand that the newbie probably isn't your target market; that you probably are targeting more established customers. I'm just giving my perspective here.
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No critism intended, just my thoughts.
Very good points. But there are other things to consider.
Depending on the niche you do not need to buy exclusive everytime, brand new non exclusive will cut it, if it fits the niche.
Putting up content based on price will have an effect on three things.
The affiliates it attracts. Good affiliates are hard to persude to join a programme, if they see crap content for them to work with, on the tour and inside the site they are sending traffic to they will not join.
Conversion Ratios. Will you convert at 1 in 200 or 1 in 2000? And will you drive 3,000 hits from a gallery or 300? Good porn is what the surfer is buying, don't under estimate it's power.
Retention and chargebacks. The surfer who gets inside a site and sees it's mostly poor content, even though it is exclusive will not repeat and is more likely to cancel or charge back.
What I do for a living seems easy and fun, but think of this. There are few who make it as a profitable business. Sell on price and the eventual judge is the membership, they don't buy and rebuy the paysite owner has less money to buy again. Therefore the "Shoot on Price" guy has less clients. Spirals down to bankruptcy.
Yes it's expensive to start a paysite in todays market, the days of starting one on less than $20K are over.