I will be more explicit, even though I won't tell all the story since it won't apply in some cases and it may get kinda tedious.
1- Those of you who think most programs are "dying"... well, I've a bridge I can sell you for cheap, mint condition. Just send $10,000 to my paypal account
[email protected] I won't go further on this, just take your own conclusions.
2- Those that are really dying... well, there are several reasons. I think the most important ones (more or less in this order) are:
- lack of innovation
- lack of professional help
- trend following
- poor money management
- global economics
The first one doesn't even need explanation. It's a given and it's directly related to second and third item. The main problem is that most adult businesses were and still are ran by enthusiastic people with certain specific skills, including being in the right place at the right time. With the addition of more actors, some of them with more skills, some of them getting professionals within their crews, competition gets harder, and even those companies with higher budgets will suffer against smart-ran businesses. In any case, higher budgets will mean higher losses (at least in proportion). See if you recognize any of these business models, which belongs to who and which one will make more money in the long term:
BUSINESS MODEL 1
CEO: original porn fan with contacts and experience
Marketing Manager: a Bro with contacts (hopefully). Usually, no marketing qualifications whatsoever.
Brand Manager: a self taught designer that goes always for the safe path. Usually very qualified and high quality work, but never out of the herd.
Development: What??????
Sales Person/s: one or two skilled and professional persons relying on the power of the brand that holds them. Tremendously poor communication skills and times (unless it's on public boards)
BUSINESS MODEL 2
CEO: highly educated newcomer or porn fan willing to take risks and innovate. Experience and contacts aren't an influential factor.
Marketing Manager: Experienced marketing professional (formally educated or by experience) with development background
Brand Manager: Experienced self-taught out-of-the-box designer or formally educated designer with at least 3-4 years experience
Development: Designers and coders working together. Existing development budget
Sales Persons: many hungry people working by results
Both of those models exists TO THE A and we all know that. Furthermore, these models are almost stereotypes (think on any adult company and you'll see most of them will fall in one or the other category, with a 3rd category we'd call "in between"). Now think about the companies closing, or even those not closing but with poorer results every single day. See in what business model they will fall.
Now, I don't want to go with the "I told you so" story, but I need it to explain things a little: I didn't predict this state of business or what would happen to affiliate model more than 1 year ago because I have a crystal ball. I did because I've information (like many people here) which when used within business development models (plus some common sense or call it intuition) gave me the results you're seeing now.
Take a look at the following :
Key Dimensions ------
1) Low Marketing Influence Characteristics ----------------
2) Marketing Driven Businesses Characteristics
Top-management objectives 1) Focused on current stock price, earnings per share, cost reduction, market share, sales volume.
2) Focused on long-term growth in revenue, profitability, EPS and cash flow.
Orientation and functional background of CEO 1) Little or no marketing experience; focused on financial community.
2) Deep understanding of marketing; compelling vision of customer value. Advocate for the customer
Top-management priorities 1) Cost reduction and labor productivity.
2) Customers, resellers and key accounts. Market information and tracking data are key management tools.
Growth strategy 1) Growth achieved through mergers and acquisitions.
2) Growth achieved through serious commitment to research and development, product innovation.
Role of brands 1) Strong brands used as cash cows to fund acquisitions, growth strategy.
2) Substantial investment to build and maintain brand equity.
Focus of new product development 1) Product-focused and technology-focused
2) Customer analysis is hard-wired into product development.
This was written in 2004. Don't you think it applies perfectly to our industry as it is now? Both business models exists today, both are successful and they may even co-exist in a same company or holding group. However, IMHO the first model can exist only if the human resources are 100% professionals. It took longer in adult because of the characteristics of our industry, but now (again, IN MY HUMBLE OPINION) it's impossible to deny it
sorry for the long post, just my :2 cents: and yadda yadda yadda
