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In addition to some of the worthwhile advice here (what the fuck? a bit of informative posting on GFY???) I would also add that you defeinately need your own traffic pumps. Don't rely solely on a sponsorship program. Use your own traffic and see what works and what doesn't. You have to be totally original to work o a small scale. You can't compete with the likes of CE or ARS without a couple buck$ (likes 100K+).
You also need GOOD hosting. Price should not be a factor when shopping for paysite hosting. Cogent bandwidth for 50 cents a gig is fine for TGPing, but it's not going to work for your paysite. You should also automate everything as much as possible (especially if you don't have employees to do things like upload new content, oversee member's areas, etc.
If your site is a specific niche, then seek out freesite owners with sites related to your niche and work on private deals for traffic. Get a starter base of 10-12 people ho have sites in your niche and work with them by providing things like content and custom adverts.
Unless you have a substantial amount of money in the bank, you're going to have to be satisfied with building slowly and just keep folding your money back into the business. You should also run it as a business. Get incorporated, set up with a good attorney and an accountant (believe me, from personal experience, I can tell you get a GOOD accountant. We had one take us for a LOT of money and it's still a big pain in our ass trying to get shit straightened out).
It's not easy and is going to be much harder with the new Visa regulations, so you'll definately need to keep on top of your customer service. A lot of even the big boys are going to be going through difficult times the next few months. Now, you can look at this two ways: get the fuck away from the paysite game or look to carve out a small niche amongst the turmoil. Remember, that as a smaller company, you can live on what would be a devestating income loss for bigger companies, but you're going to have to fight much harder for traffic.
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