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he is a bitter old man and just can't stand that others can make money with the opposite of his strategies. from paul's point of view a business has to work for the fools and he can't and doesn't want to understand that someone who is not a fool simply takes the business away from the fools. and since paul on the other hand is smart enough to know that such people are called losers and he doesn't want to admit that he is the head of this group, he denies reality and comforts himself with the lies that only he himself believes. |
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at paul's time there was a handful of magazines and a few thousand sexshops and videostores. today there are millions of them on the internet. and of course everyone would like to be the only one and tell later how easy it was when there was no competition. |
I just make alms . . .
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It was also the time I decided to retire. After 30 years in the biz. At our height we were selling online and offline and making great money as a content producer. A dam sight more than most paysites. |
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There is no denying that today the porn industry supplies more porn than ever before. The difference is the money made. Magazines paid 10 times more than paysites could, online content stores sold 10 times more than paysites would pay. DVD companies paid 10 times more that paysites could. Tubes can't afford to pay for content without a paysite model. They can't afford to pay a $5 a gig BW, while paysites could and did. The Hun could post a gallery and the BW bill was the difference between making a profit and making a loss, while some sites could afford to buy spots. It doesn't matter how many people are watching porn, all that matters is how many buy porn. |
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if yes try to tell me wich is the bigger market size: 100 magazines with 10.000.000 eranings or 10 million magazines with 10.000 earnings Quote:
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the costs to send a video to a user 15 years ago have been simply too high to give it fro free. with the tubes things have changed because they buy that much bandwidth that they can give it for free AND make money with whatever else than selling porn. alone the dating revenues that are made in porn today are aproximately 50 times higher as all porn online revenues 15 years ago. and this is just dating - there are dozends of products more that bring the advertising money - why shoudl they only sell the product with the smallest group of buyers? Quote:
i HAD this experience with the hun when i posted galleries around the millenium and i paid more for the bandwidth than i could make with the sales. if a post did not get enough sales it was a negative balance. Quote:
It doesn't matter how many people are watching wild wild west movies, all that matters is how many buy horses. and you know how far you are from reality. a hotel on the beach does not sell the beach it gives it for free and sells the bed and the food. you will never understand how marketing, and especially internet-marketing works and this is why it is so senseless to discuss that with you. |
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- When people where able to buy porn by Ideal bank (cost 0,30 cents per transaction) instead of telephone (20 - 50% of the transaction) i saw my income more than tripled in a year. - A magazine made money cause of porn images, classifieds ads, sex stories, advertisement. Look what Adult Friendfinder makes, Backpage made, traffic companies make reddit makes... worldwide! etcetra. Only adultfriendfinder isn't interested in porn pictures or the advertiser must put them up (user generated content). I read a book about the history of porn in Holland, must ended up with no money at all due to circumstances (like the internet/ drugs/ bad investments/ living too large). I had a free classifieds porn site already 15 years ago, why buy a magazine with ads that are 4 weeks old and a reply takes also days/weeks. On my free sextories site i put even Paul Markhams pictures at the stories :) So in a way, you fucked the magazines also, just like the tubes ;) - Magazines even made money putting in fake ads so people could sent a letter to the magazine and they would sent it to the author for 10 guilder ;) - Recently Beat Uhse and Scala are taken over by EDC Internet (Dutch company) who started 15 years ago in an attic. He looked outside Europe and selling worldwide. And making more than regional sexshops with a market reach of maybe 50 - 200.000 people in medium large cities. Magazines are history. If i tinder for free i see more porn than i could find in 1 magazine. And real amateurs :) |
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the fact ist that not one of this dino companies ever understood the internet. beathe uhse, playboy, hustler and whoever else did NEVER even get in the near of the noname companies that have started with internet and have been focused on internet. the big nameīs market share in internet is a joke compared to the millions of internet enterpreneurs that have seen their future in the www. when TV came up there have been many people crying like paul does because they where focused on the cinemas. they will not understand til today that the market with free movies is thousands of times bigger as the cinema market ever was, just for the reason that movie-income from cinema was always related to the ticket price and the popcorn and coke. if you give the movie for free you have options to get on the buyers complete budget and that makes it so valuable. alone in our little network we are generating around 100.000 free signups per month in the different advertisers sites. roughly 3-4% in average of this people will ever buy the product wich are possibly 3000 to 4000 buyers with a livetimevalue of around 150-200 euro in dating and around 400-500 euro in cams. BUT: as the market today is completely different of before the same revenue again is made with the 96-97% that do NOT buy the product because smart advertisers are using this data they got on the free signup and selling this user who signed up in a dating site (but never paid there a cent) something completely else. and this "else" have no limitation - it can be the next holidays or a car insurance. people that are able to think above the horizon do know very well that the real value is in the existing contact possibility to someone who is a consumer. and no matter WHAT he is consuming - if you have his contact you can sell him all he might need til the end of his life. what paul does not and will never understand is that the biz he was in just focused on 0,29% of the consumers budget - and this 0,29% for pron have been in 1996 0,29% and they are still 0,29% - the only thing that have changed is that with growing of the internet we got more people with lower buying power in the net and MUCH MUCH MUCH more who compete for this buying power. the complete pott we are focusing WITH porn today is approximately 1000-2000 times bigger as in paulīs stone-age |
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- When people where able to buy porn by Ideal bank (cost 0,30 cents per transaction) instead of telephone (20 - 50% of the transaction) i saw my income more than tripled in a year. Quote:
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They couldn't afford the BW at a raised price, can't afford to pay for their own content, because they don't make enough money. 20 scenes a day on Pornhub = $2,000,000 a year for content alone and that's not for good content. I only allowed $3,000 per scene. How much do they make from advertising? How much traffic do they need to pay for content? And would we as an industry be better off if porn tubes disappeared. Not that they will and we have to live with the cards we are dealt, but don't try to argue we can make more money giving it away for free than selling. |
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you write in a forum where people talk about a biz they live from. now you don't know who does what or how much he earns but you are sure that they are all dumber than you and only harvest crumbs. so you are here to tell the people that they are too late because YOU have already taken out everything that was possible. in other words: you tell the people to give up their biz, in which many earn more in one year than you have earned in your whole life, because it is pointless. you're such an old fool that you can't even see how ridiculous you are making yourself. if you need people to explain to you that the green men in your bed are not real, then you should go to the old people's home, because there are employees there who are paid to patiently listen to such stories of old senile men. you're really freaking me out about getting old. I hope that my fate will take me away before I start to tell tell such a hair-raising stupid bullshit. the only thing you can really prove is that you didn't manage to build up a reasonably comfortable retirement income in this time of milk and honey. so WHAT exactly should WHO learn from you? every one of my dogs and cats knows more about internet and internet marketing than you do. so WHAT can YOU teach us ? maybe how to win a formula1 race even though you've been cycling all your life? i don't know what bridge you slept under before you switched to pornbiz. but it must have been a pretty deep valley if you now think you would have climbed the mount everst. if you could play the piano i would like to explain to you why there are black keys next to the white ones and - surprise surprise - that you can use them too. |
I got my calculations wrong.
Pornhub put up 20 new videos a day, at a cost of $3,000 per video. Could they do that and pay for the content? 20 x $3,000 x 365 = $21,900,000 How many surfers do you need to pay $21 million for just creating the content? Did the porn industry generate 20 new scenes a day or 200? Was the porn industry able to afford the BW costs or the printing cost or the duplicating costs prior to Tubes? The truth is tubes can only survive because their costs today are so low. If they had to buy content, pay for a higher priced BW. Tubes would whither and die and paysites would replace them. The Internet allowed loads of new people to enter porn and make money. Now the number of people making money in porn has shrunk to a low level. Most people here have switched to making money in other sides of the Internet. And porn as a part of their income, which is why the board has slowed down compared to the good times. With the front page containing threads from the last three days. While Thommy rants on and on claiming something without offering examples to back it up. I offer examples. |
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Typewriters would still be around if computers were not so darn cheap! Horse and buggies would still be around if cars were not so darn cheap! The world moves forward. Business moves forward. Those that don't, get left behind. Companies need to constantly move towards the next thing because there is a disruptor sitting underneath them that wants to come up and shove a broomstick up their ass. Time to forget the glory days of being the high school basketball team champion and find something new to celebrate. |
Wow PM still at it huh ;)))
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IMO the best years were around 2000 to 2006. Offline sales were still good but not great, with DVDs, Cable, Mags, Phone lines, cable TV etc run on a country by country basis. Online sales were great as well on a world wide web basis. To really coin it with an advertising based model online porn has to be accepted by mainstream advertisers. So ads for people like this. https://www.wordstream.com/articles/google-earnings The porn industry is very much restricted to selling porn related products with it's advertising, with a few exceptions. Tubes can't afford to buy content and certainly couldn't afford to relay content if BW were to rise. But for now Tubes are given loads of content and BW is priced very low. |
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a market size is the result of a multiplication where is the number of buyers before the x and the price after the x. no matter if you increase the number before or after the x it will have a higher result. a porn movie and any digital good that you are able to simply copy have only ONE price - these are the cost of production. it is not the same as a salami sandwich that you have to produce for each single buyer. so in fact the value of this video can be calculated based on the numbers of buyers and the price they are willing/able to pay for it. in this case you might produce a video for letīs say 1000 dollar and sell it for 2000 or 2500 to someone who will hopefully make 4000 on a very very long term by finding 1000 customers who want to buy it for 4 dollar. but you can also do a very other calculation by assuming that this video can be served to 100 million visitors for free. if each visitor "pays" indirectly though advertising only 0,0005 US the final market size for this video is not 4.000 but 50.000 dollar. of course it is not sold to ONE buyer for 2500 dollar but maybe to 2000 buyers for 2,50 dollar. what kind of products are promoted on this video doesnīt matter. we have already so many options with products that do not care to advertise in adult. especially dating, gambling, enhancement, cams, amateurs, ebooks are buying more traffic as any network have but we do also have buyers from the very nonadult world who start to understand that wankers are consumers. even if this number is not THAT much yet there are again thousands of mediabuyers with nonadult product pages where all this products that we do not have yet directly are promoted and sold. the products do not want to be visable on a porn site but they do not care where the shopsite get itīs traffic from and here we are in another buyer market that did not exist 10 years ago. on top of that every smart advertiser (and i would say 10% of them are already smart) is not really dependent on the sale of the product that it advertises - this is the reason why many product advertisers are calculation on single opt in. marketing is above the product - the value is in the connection to the consumer and keep this connection alive. if a marketer does have this connection to a consumer, he is able to sell him ANY KIND OF PRODUCT later. and this makes a simple emailadress or phone number MUCH MORE valuable as the sale of the product this user was originally catched. as the internet (and especially the adult internet) is not a place where 2 or 3 big players getting all - you have to rethink the strategy of production. you will not be able to find enough buyers for a 50 dollar video but you will be able to find thousands for 2,50. so in fact the market today is MUCH bigger as it was before - just the always yesterday people like you did not catch this ball and swim with the stream - instead of that you are praising since years that the stream will go back to the old direction - but this will NEVER happen because too many people making too much money with a much bigger market as the one you are still dreaming from. |
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Selling to 1-20 is great Selling to 1-200 is good. Selling to 1-20,000 needs 100 times the quality traffic. Selling to 1-200,000 needs 1,000 times the traffic. Selling 5 @ $30 is good Selling 500 @ $30 is bad. Industries that don't give the product away are doing great online, industries that are giving away for free aren't. Quote:
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If the market is doing much more money than it was, Tubes would be making their own content to be exclusive. We're giving it away to sell ad space because Tubes can afford to with free content and very low priced hosting/BW. But they can't afford to with only making $250 per video Quote:
If you were right, Tube sites would be buying content for their Tube sites or for a members only area. They're not they have to feed off free scenes, because you're wrong. |
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maybe someone can teach him to use a calculator - i am unable to teach him a first grader logic |
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Competition is huge in both mainstream and porn. Advances in software have democratised the content creation business in all areas, videos, music, book publishing, tangible online sales etc. Unless you have a solid business model, or are very lucky, any online business you go into will be difficult to make money from. |
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what paul assumes is that the smart ones with a lot of money to invest will let the dumb ones eat the cake. this will never happen when there is money in a market. he also does not know what "mainstream" means - I get more than 50% of my revenues from advertisers that are mainstream advertisers. sure they can buy even better traffic on mainstream sites with 100 users per day. but they will pay for a click 1 dollar or even more (depend on the niche). even when this traffic would convert 1:5 it will not bring them anywhere. they prefer to buy 1 million clicks for 5 cent and convert it 1:100 because with so many buyers they will reach a MUCH better market position and MUCH higher payouts. i wish that everybody in this biz would be such a moron as paul is - i would be a billionaire already with competitors like he is. |
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At first the Internet allowed lots more people to sell product, then the expansion led to a watering down of profits, then to a level where few made more than a nice living. Even with all the big talk here about how well they were doing back in the good days. How many site made enough money to pay decent prices for content? A handful, then a few who produced it themselves. Today with Tubes they could never afford to pay low prices for content, because as Thommy points out 0.0005 per user needs 100 million to get a good return. They don't do that. Because there are too many tubes "saturating a market with suppliers and the same or similar product doesn't lead to same expansion of buyers." It was one of the first lessons I learned in marketing, 30 odd years ago. |
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Anyone selling traffic that converts will be charging pro rata for the traffic and the profit on the sale. Because traffic is mostly auctioned to the best bidder. If a site only does 1:5 on 100 hits, for a speed boat. $20 sale is great, for penis pills it sucks. |
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the SUM of the tubes doing MUCH more - and THIS is the market. i don't know how someone who claims to have learned something in marketing comes to the conviction that "the market" is limited to the visitors of ONE site. your arguments and your arithmetic skills are becoming more and more hair-raising. the "real wold" in what you want to send me for holidays is something that you have never been and what you will never see. |
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The Internet changed that and at first a few had the chance to make a lot of money by selling to the few countries with the Internet. Then it changed and the over saturation of suppliers wasn't matched by the growth in buyers. America and Europe were already buying, growth in numbers were coming from countries without the money or ability to buy. The offline buyers had moved online and that source was largely played out. Then Youporn was created and a huge spanner hit the works. People no longer had to buy their porn fix. Thommy is convinced that 1 million buying at 0.0005 ($500) each is worth more than 1 million buying at 1-100 at $30 ($300,000). His 100 million was a mistake I'm sure. :1orglaugh |
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the problem is that you have so much no clue of this market makes it impossible to explain you anything. Quote:
how many speed boats do you think are daily sold IN INTERNET and how many penis pills? btw. this enhancement products have a MUCH MUCH higher per user value than 20 $ usually the advertisers spend for the first sale around 50-60 - some of them up to 150 JUST for the advertising (In the tier 1 countries) - in countries like indonesia or the philippines or other asian countries it is still around 10-15. this is already more than the complete lifetimevalue of a user in the good old porn membership times. and as i said - enhancement stuff is not a very big part of the total revenue - they make maybe 7-8% of the total. and is is indeed correct that click prices in a network like ours are not made from me or from the holy ghost. they are high because people can make good money if they have the right product and know how to advertise and this people do high bids. porn membersites can not - and the NEVER could because their concept was the webmaster affiliate that takes the risk and most of them did it because they think that they get traffic for free (what is not the case). but as you see we do not really need them. we can live much better with advertisers that are ABLE to pay good money. |
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in tier1 a visitor of a site has a value of aproximately 0,001-0,003 US. alone in our very small network we are talking here about 8-9 million unique visitors per day. and now calculate that with the BILLIONS of unique users per day on all those free tubes, blogs, picture sites and even parked porn domains - than you have a small idea of the market size we are talking about. in your time the complete online porn market per year was around 100 million and there was nothing else sold than that. the revenue of all porn sites today - no matter if made with advertising or affiliate marketing of ALL products that are sold there NOW is approximately at 5000 million and growing. |
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they do not have to buy as they get it for free from the producers and give them a share. and they also have paid areas like pornhub. but a paul markham would not be an attraction there - they can afford to work with disney stars like bella thorne |
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You're constantly trying to justify black is white by including mainstream product advertising. I'm saying that selling porn made more money before Tubes gave away for free. Everyone knows online advertising is huge in mainstream, but only for tangible products. Products given away for free have suffered. |
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Back them up with evidence, include offline porn as well. And then read up on https://www.google.com/search?biw=13...Ug1CfwQ4dUDCAo There's no dispute we serve billions today, but at your conversion rates of 0,001-0,003 there's very few sites with a lot of visitors that can convert at that rate. Most certainly not Tube sites where the bulk of the traffic is. Which is why they sell ads for a lower price than TGP sites used to. You constantly tell us that affiliates have to be better because today it's harder. Adult King tells us the business is more competitive. And a lot more say it's harder to make a living today. So who is buying all this expensive traffic people sell? Not your secret traffic, you can direct us to your competitors traffic, or is that a secret as well? |
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paul i was running a huge and very successful membersite for more than 12 years. i know how hard it is to get even one single buyer and as i started that side in 1999 i also know the numbers from this good old times you are talking about. the expenditure to run a sich a website is HUGE - starting from fraud protection til customer care, content buys, affiliate system, servers, content delivery and much much more. even with 2 million revenue per year there is not more than 8-10% of net profit left if you want to make it good. and there are not many membersites that make 2 million revenue - not in the good old times and also not now. so donīt think that i donīt know about this market. because i know it MUCH better than you as i had actually the very first paysite on membership base in the german market - weīve started one week before fundorado and if i would KNOW that they start i would rather promote them as to go through this B2C hell. fundorado is still doing good - but the market is not big enough to keep that many of them alive. but the market is big enough for all the publisher sites when they do not focus on this little cake. btw. the video market started to die already around 2000 when the first livecams came up. in all the time when i had membersites the usage was 80% on cams (wich we bought and sold flat also) and just 20% on videos and pictures. so in fact we paid too much for videos already than as it was never the reason why people signed up. tell me why livecams are still here and bigger than ever before even when you can get them for free ? what did they do better as you did? they are just smarter as you are and think further as you can ever think. so do not complain the tubes or the market - complain your brain! |
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the offline pornbiz was a black money biz - and because it was easy it was made by pimps with no clue of the market. Quote:
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business is not communism - the best will have the most traffic and the others die. it is as simple as that and it works like this in EVERY kind of biz. Quote:
if this biz would not make money there would not be such a competition. and yes of course it is harder today because you can not make money when you are dumb . i never said anything else ! but that smart ones do not only make the same money as before - this money is still here and not even this money - it is MUCH MUCH MORE - but it goes into the hands of the smart, competitive, far-seeing, skilled and not in the hands of people with your views. so if you want to discuss the biz - than discuss it on the reality of today and not on a long past era when a couple of idiots who had no name to lose bathed themselves in the champagne that rained from the sky. and when exactly these unprofessional idiots asked every one to become their competitor because they believed it was "infinitely" much of it there in the paradise. if you know the offline business so well, then ask one of the half-dead guys from back then what it was like to open a new sexshop on the other side of the street. |
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With adblockers, Google and others tightening their software to block annoying ads, etc I predict in 5 years or less those profiting from this circle jerk traffic will drop signicantly. Will it ever go away? No, not likely since there IS profit in it. But the cost to earn that profit will continue to go up as the companies that profit the most from these strategies continue to shrink. Your game Thommy is based solely and strictly on huge numbers, mathematics and probabilities. That's awesome for the analytically and metric minded. But, in the end, only VERY large companies will be able to afford this kind of game where the basic investment is a minimum of 50k just to get any type of traction at all. But, as you say, this is true of EVERY market. Those who work with Wal-mart will always insist everything is just dandy while the small community supporters of the local flower shop will bitch til they go out of business or settle for tiny scraps. So you know, good for you for working with the porn Wal-Marts of the world but your calculations don't really apply to us normal 'small business' types. :) |
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when i was starting trafficfabrik there have been only CPM networks out there and here i saw the problem. CPM is a method that is completely based on performance - means: an advertiser wants to have as many clicks as possible and assumes that there are a few buyers in a big number. additionally the CPM model is an open door so decrease quality because however prices are falling a publisher just have to add one more banner and ready is the banner farm. this is why i was going CPC only and everybody was laughing at this time about this idea. as i do have a quite huge number of own sites I did not need a lot of publishers and also no other network or RTB shit to have traffic enough to start. right now we do have not more than 80 publishers and nearly ALL of them are big or running huge networks but 100% of them I know personally and they are following my vision. my vision is that a user clicks banner not for accident - I want he clicks because he is interested. sure that leads to a much lower CTR but the quality of a click is much more valuable. i also do not want that people go away from a site just because they where tricked - a user can buy today, tomorrow or next month or next year - it does not matter - but to do that he have to come back. the coalition for better ads rules have been in my network long before coalition for better ads was existing - and believe me they are even harder than theirs. no 500 kb animations - not even animations that never stop. no fake chats - no fake closing buttons - not even a yes-no on a banner or something what could be understood wrong is allowed. so and now letīs resume what have happend in this last 7 years: COM prices went down around 50-60% my prices went up 500% 7 years ago the network was already closed for publishers and worked on invitation only. now it is also closed for advertisers because it is already too much competition inside the network. I do allow clean advertisers what are promoting stuff that is not already over promoted. I actually do not need new advertisers because i rarely lose one. we also need to keep in mind that the really big buyers would not buy even the very best traffic when the numbers are too small. big mediabuying agencies would not even try to buy when they can not spend at least 2000-3000 euro per day (but better more) because to maintain and optimize big campaigns makes less effort than big campaign. and a GOOD mediabuyer will laugh out loud when you offer him this job for 5 or 6 thousand dollar per month. we are mainly focusing the german speaking market but even when we are so limited and when not many of you guys know us - we are the fastest growing adult adnetwork on the planet. it is not very hard to grow from year 1 to year to 100% and even in year 3 to 4 50% are not really rare. we are growing 3-digit since 7 years. i started in this biz as a webmaster and i owned paysites - i even had my own payment system - so I really know this biz from EVERY point of view. there is really NOTHING what I havenīt done yet - but i come originally from advertising and this is where I am best - and this is why I focus on that. I know that it will ONLY work when ALL people involved are happy and not only the advertiser OR the publisher OR the network. the art in this biz is to keep the balance between them. so if you talk about advertising networks you can completely exclude me here because I have a VERY different idea of that and go - as I always did - my very special own ways. |
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Thank God Paul could have saved the industry...................................... .................................................. ................................ ................ if he wasn't retired:( |
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