no money in porn :(

From Aug 15th 2011 10-Q


Marketing Affiliates

Our marketing affiliates are companies that operate websites that market our services on their websites and direct visitor traffic to our websites by placing banners or links on their websites to one or more of our websites.

The total net revenues derived from these marketing affiliates have increased from year to year during the three years shown, while the percentage of revenue contribution has increased as well. The compensation to affiliates can vary depending on whether an affiliate chooses to be compensated on a pay-per-order or revenue sharing basis. Under a pay-per-order agreement, we compensate an affiliate one-time for each new member that places an order. Under a revenue sharing agreement, we compensate the affiliate in perpetuity for as long as the member continues to renew their subscription. Depending on the longevity of the subscription, either of the two compensation methods can result in a higher expense to us. In addition, we occasionally modify the pay-per-order compensation amount as needed depending on the quality of the traffic sent by the affiliate, economic factors, competition and other criteria.

Our compensation to our marketing affiliates has decreased and the percentage of revenues from our marketing affiliates have increased modestly, reflecting the variability in the rate at which we compensate our marketing affiliates described above. The percentage of revenues derived from these affiliates and the compensation to our affiliates for the three and six months ended June 30, 2011 and 2010 are set forth below:

Three Months Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
Percentage of revenue
contributed by affiliates 47% 44% 46% 44%
Compensation to affiliates (in
millions) $14.5 $18.7 $30.7 $38.6


-----So, affiliates are contributing more to revenue, but receiving 25% less compensation. Interesting.

Adult FriendFinder
There is some controversy over the true ratio of male to female members. Additional reports state the user database is rarely purged, and a larger-than-average number of members are prostitutes "looking for clients".[8] Others are scams advertising fake profiles using photographs taken from the Internet to phish for e-mail addresses, or to advertise for other websites. As with most dating services, they offer a free membership option, although there are thousands of reports of problems with the free and paid memberships.[citation needed]
In 2004 and 2005, the Ripoff Report published a report[9] written by a former employee which included allegations of deceptive and/or criminal activity. These allegations included the inflation of the member database using false profiles, using computer code and archived chatroom logs to provide the appearance of greater activity on the site, and the use of bots to send emails from profiles that are not of actual people.

http://en.wikipedia.org/wiki/Adult_FriendFinder

New all time low today $1.42