How much startup money is required?

I'd say round 20k

very very nice thread

one of those rare ones you don't see all that often on GFY...what makes me scratch my head is why not one of the big boys jumped in here to share some words with us but then again maybe nobody wants to give out their secrets if there really are any

another thing nobody mentioned is that some programs redirect certain countries that get very few sales to dialers and other things...

yes, very good point

GFY need more threads like this...

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....

I couldn't agree with you more

Well, I had a few people ask me to post my analysis spreadsheet.
Here it is. Keep in mind that this is with 40% conversion from Trial to Full memberships and 60% of those rebilling each month.

JasonandAlex.com Program Analysis

+ many PPS programs dont pay for non-US sales, that can be 20-30% bonus revenue.

Our program would consider that shaving if we didn't pay you on the join based on "where" the surfer signed up in regards to his country, if we (and Nats) can process it and track it, the affiliates deserves to get paid on it. We didn't send the surfer there, the affiliate did.

yes, it is shaving, but nobody blames the companies for it...some ppl prefer PPS so much, that they dont mind to make less with it, its a mystery for me...

why wouldn't you as an affiliate want to get paid for all your traffic regardless of where it originates from? If you send traffic that goes to a dialer or check processor you should get paid for it.. I agree with banker that we would consider that shaving...

I agree with you, I dont like when programs redirect foreign traffic(or dont pay for the joins) or dont pay per check or other sales.

I will never understand that train of thought. Why would an affiliate push something when they knew they were being lied to, just didn't want to admit it.

It's funny when I get together with my friends and the such and we talk shop, laugh at the possibility of companies paying $55 a sign up. There always seem to be something wrong with that picture.

I know the cost is enough to keep me away from starting one.

there are pernamently threads about who pays the most per sale and affiliates love such sponsors, I think many of them prefer to get paid $50 sale and 50% shaving than $25 per sale and 0% shaving, $50 just looks better...

What always looked better to me, was a bigger check in my mailbox, but what do I know.

nice view, shitty front page. http://www.joemaria.com/

What a great fucking thread.

Am taking many notes.

lets see proof, unless you're just a jealous revshare program owner.

Nah....I can walk and chew gum at the same time

well to throw one together you could do it 5k to 10k but to have a decent one i would double or triple that and to have a fantastic one i would go 50k to 75k

proof? Read GFY, some program owners dont hide it that they dont pay on foreign traffic...

a lot of other factors dont seem to be counted in there

good thread needs a bump

6 years ago I started my first paysite for less than $5000.
Things were different in 1999 though...

My newest site cost $100k to develop and launch, and i'll probably drop another $50k into it before it starts to be profitable.

sorry, but you are doing something wrong if you need to spend $150k into a site to be profitable.

Companies with the capital to pay PPS usually have enough firepower to finance in-house programmers and do not need to rely on 3rd party software & support.

damn this thread got big.. and with great info

intresting point

Not doing anything wrong at all.. Just willing to do something different and innovative. Not every website has to be done exactly the same way. And there are plenty of websites that spend even more than that to launch..

You can lower some of your costs through outsourcing. Email me to find out how.

We do traffic and text/data work.

At the beggining you need fuckin very nice skills and experience in adult biz to even think about it

annie cruz

must be a helluva fuck

S0 if I get the exclusive content for free...

i'm down to needing only about 10 grand...

btw... since i started this thread... way back when..

i've gotten 6 girls to sign exclusive contracts

bought a canon rebel
bought a lighting setup from lowel
getting a minidv camcorder tomorrow
looked into getting incorporated in the states...
designer already paid...
and then shooting costs for the model...

once i finish.. i will post my exact amount for starting my first solo site

awesome fucking thread! BuMP!

Let's see some numbers sonofsam

We are almost in July, what have you done since then?

After 4 meaty pages, the answer has been settled. In order to start a paysite, one would need approximately $1,482,000.32 to cover all expenses. Kool.

Only 94$ ?? Mouhahaha, this is a good ROI !

So far just on a design, minor hosting (for starting up) and a couple sets of non-exclusive content I've spent about $1500-$2000 for my first. Trying to determine what would be a good amount of content to get started with. So for now I'm probably gonna just keep taking money where I can get it and buying content untill it seems like I have a good amount.

okay well since then i had started working on a solo site... got a couple days of content done, then the model flaked....

recruited a couple more girls... decided to make a solo site with 1 of them... bought the equipment like i posted above, but ended up just paying a photographer to shoot the content. Didn't want to risk having the model flake so i quickly shot 1 years worth of updates and enough to launch with, so that i wouldn't leave a possibility of being fucked over.

Now one of the biggest setbacks was because i'm in canada. If you wan't to use ccbill or paycom and accept visa on your site, you have to be located in the states or EU.... or at least be incorporated there... i went through an incorporation company to get incorporated and it cost roughly 830US.. now the part i underestimated was how long it takes the IRS to send a tax id, and you need a tax id to be able to fill out the visa registration contract, and paycom/ccbill contract... the IRS took over 6 weeks to send my tax ID because of their policy that they can't give it over the phone... if you are a US citizen with a SSN you can get the number over the phone, but if you are a foreign entity you just have to wait... which is frusterating because i would always call back and ask for an update since its taking so long.. and the guys like.. its been sent, i'm looking at your number right now infront of me, it's been assigned.... and hes like its 7-9 digits, and right infront of me.. but i can't give it to you

anyways the site is up right now but i didn't really drive any traffic to it until i switch it over to paycom.. for a couple reasons... 1.) when i switch to paycom i would lose my rebills on ccbill and 2.) if i were to start taking on affiliates right now, they would get pissed if i switched to paycom and them having to change all their linking codes

btw.. currently i'm on a ccbill subaccount of someone elses... but i'm switching over to paycom, as soon as i recieved my tax ID... (roughly 1 week ago) i completed my paycom contract and sent in the visa fee to switch over.. site should be visa approved this coming monday-tuesday so look for an announcement thread

BTW.. a big hurdle for me was finding out information on how to get a paycom/ccbill account since i'm in canada and can't do it from here...

basically you need to go with paycom.. because even if you incorporate in the states CCBILL requires the principle owner of the LLC to LIVE in the states and also supply their SSN number... where as with paycom you can just give your canadian passport number etc...

but its not too big of a deal since paycom/ccbill are both good...

btw... costs so far for me in adult has been 10-11k and i've gotten a full teen solo site developed.... mind you that includes equipment and a content package and visa fee + incorporation... so now that i have the equipment costs and visa and bullshit paid for... the next solo site won't cost me nearly as much..

my first solo girl that i had started to work on a site with was a fucking nightmare.... so i'm really thankful to my new girl because she has manors and is well spoken etc.... and VERY easy to work with...

heres a pic of the girl btw.. and her site is being officially launched in a couple days....

she's a hottie man! good luck! What kind of fees are you paying through paycom?

exactly what is an average site?

i guess what i meant was non-exclusive content... i dunno... was a long time ago... check the date this thread was posted; i've come a long way since then

thanks buddy, and i'm paying the normal rate.. i believe its 14.5% transaction fees... but obviously with more volume you get a bigger discount.... hopefully the site does good

No one has any of their own traffic to begin with, its not hard to get a decent amount of traffic to your site without using a program.
he can do it without other webmasters

You're the man sonofsam

thanks buddy i'm doing fansigns of my solo girl if you are interested... check the other thread

I've seen someone doing it for $250k/first site and I've seen others do it from $5k/first site... both can have the same results ... be smart, don't lie and don't fuck up anyone... and find good niches - babes and teens are the hardest to make profitable.
Also go for exclusive, quality content, with frequent updates.
The more you can do yourself, (or someone as a partner) the better.