Is this business going downhill?
 

So many people seem to think the business of running a paysite is going downhill. In my own opinion what's happened is more and more people are building sites with less and less money for content and traffic. So the average site is much worse and there are a greater number of people failing. But not because the business got that much tougher... more because too many people are trying to do paysites too soon. I'll agree there are some factors like billing companies going tits up that have hurt. But it's not nearly as bad as people make it out to be.

So anyway I'm sure there are a hundred differing opinions. Let's poll it!

What's a paysite? :Graucho

This is the future:

TGP's becoming ubiquitous unless there is a law change
No submissions from folks off the street. Only hosted galleries and trusted submitters will be able to submit.
Conventions will get smaller and smaller until it only consists of private dinners and get together's at resorts.
Big companies will stop recruiting affiliates and will go overseas to find worker bees to promote sites.

You can survive if you are
A trusted personality in the industry and you can get big traffic (like DH)
A small fry with connections built over time to get your submissions in.
A well known content provider
A well known designer
A TGP owner with big traffic
A niche paysite owner with good site branding

If you're a small fry with a sponsor and no partner submit codes, you probably won't make a dime after this year.

But running paysites won't go downhill anytime soon.

Thet there is a most intelligent response!

I agree with BVF, the business is getting better and better, for those who can survive.

The days of the "Wild West" are over, the surfer is more educated, the billing companies are being pulled into line by the Credit Card people and the big players are coming into the market.

The days of starting a paysite without the necessary experience, money and skills are nearly over. A lot will try but few will succeed. The days of buying up a content blow out and making it work as a paysite are gone.

TGP traffic will have to be controlled much closer, subcontracted to a firm or done in house.

Those remaining will be offering a better product and experience or they will get lost. How that effects us I cannot say, I personally like lots and lots of people coming to buy from us. Don't want it to go the way the magazien business did, 12 major players who control the market.

Only one point I disagree with, being a well known content provider is not enough. There are enough of them suffereing, being a ood and well known content provider will save you.

This is just the opinion of one person. :)

Its been on a downhill since 1996 but still strong

i think it's more about the competition level rising, but then again it seems that way in almost every industry :(

For the average new guy that thinks they can come in and make a site with a handful of pics and make a lot of money, they're in dreamland. The consumer is too sharp now to fall for baloney looking sites.

The only ones who are going to make it through this next phase are those who reinvent the business model to what the consumers are asking for and at reasonable prices with continuously updated content and who understand marketing.

I'm predicting at least a 2/3rds fallout within the next 12 to 24 months.

10dollarcash is the way forward :)

I agree with most of what BVF said, especially about the inhouse/ outsourcing part. However I don't think TGPs are going to be ubiquitous at all - there are still better ways IMO to get bulk traffic at a better ROI, and people who can do it - eg through SEs, or I even know free site webmasters who have mid- to high- level TGP traffic levels over their entire network of (very advertising heavy) sites. There's always mail traffic too.