| Atticus |
02-22-2005 11:42 AM |
This thread is humorous. This business is based on the model of charging $20 - $40 a month for content. $40!!!!! $40 is a cable bill. High speed access, Dinner for two and a movie. Up to 40 magazine subscriptions, including adult titles. I dont care how good the members area is, this business is based on ripping people off. No one here can possibly justify a price tag like that and say the consumer is getting fair value. People will pay more for less when it comes to the adult industry. That simple. A guy will bitch about $45 a ticket for Disneyland but gladly shell that out for 2 lap dances at a strip club. $10 for a movie?? Outrageous! $40 for a members area to a adult site? Sounds good? Dont think so. The basic retention in this industry is based on people forgetting that they have a membership. People come to an adult site to get off, they join the trial and pay a repectable amount, $1 to $5, then they get off. Then most cancel. The ones that forget, get charged for their forgetfullness. (of course there are exceptions to this rule, ie: single girl sites where guys fall in love etc) So if your business model is based on 30% retention off of the trial, the best way to get there, is to create a members area that is good, but not great. Great, people remember, and no matter how great, $40 is a ton of money to spend per month. So if you make it mediocre, the customer gets off, and forgets about it, then get charged per month. A certain amount get their credit card statement and realize and call and get a refund, the rest chalk it up as their own fault and the paysite gets paid.
It would be a great world if everybody in this business put up memorable and great members areas, but if you continue charging $40 for it, the consumer will continue to feel riped off. The future of the industry is a reduced monthly rate, most likely charged on a yearly basis, much like magazines, with cross and upsells, utilyzing the versitility of the web. Eventually the free content on the net will catch up to the current paysite model and force it to evolve to real world economics. Its the basic law of supply and demand.
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