Why arent paysites using Walmart business model by continuously reduce signup prices?
 

I haven't seen prices of signup to paysites go down, in fact I've noticed the opposite in some cases! Wouldn't be more logical to continuously reduced the SU price to gain more subscribers?

yeah, lets give them $250,000 worth of content to leech for $2.99
that will help our books

What about reducing the price from $29 to $24 the first year then to $22 the sencond year and so forth? Look at how Walmart run their business and how big they became.

Everything out there is more expensive now so why not porn? Walmart does not reduce prices below cost.

yes instead of going down they need to go up

wallmart is one big business who can dicate all of their stock from manufacturing to sale, porn business's cant, they work as indivuals, which makes it harder for them to control the prices.

also porn is very different to consumer goods imo

if lowering the prices, walmart aim to gain more sales. I believe people who buy porn mostly dont care about prices if they are between a certain amount $10-30. if we start charging $50 they may care. but low prices i doubt will get more customers, no elasticity of demand.

You have a lot to learn about how Walmart does business.

Hmm, that's not what I'm hearing from models!

the delivery of content has improved vastly in the past years, so more video in member areas, more content downloaded, access to more sites for the cost of one. i'd say if anything they should go up. although i still find the 40/month sites a tad expensive 24 bucks a month is damn cheap.

LOL. I just read an article on how they killed the Orange industry with their low price, and how a pickle company, I beleive Vlash (I don't remember the name) is making big sales with Walmart but makes almost no profit off of it:winkwink:

A lot has to do with the perception of value. Often times if you lower the price, people automatically think the product must be inferior.

Comparing porn to Walmart is like comparing grapes to watermelons. Walmart sells an incredibly high volume of merchandise and can dicatate purchase terms and prices to their suppliers.

They pay their employees a barely subsistent wage in most places (compare that to a paid porn model and production crew).

They don't pay the comparatively exorbitant transaction fees the adult industry is forced to pay.

Many reasons...

Exaclty why it should go down. WalMart help improved the delivery and fabrication of suppliers it work with, an then they in turn are able to reduced (or forced to reduced) their price and pass it along to customers.

It isn't quite that simple because a lower-than-expected price can work to convince some people that a product is cheaper than it should be, therefore it cannot be worth buying. However the real issue is that most sponsors depend less on the saleability of their sites than the availability of affiliates.

It is illogical that the Internet is best suited to high-volume/low-margin marketing yet most of us pursue the opposite business model. Over the long term I'm sure prices will go down, as sufficient (large) newcomers decide not to get locked into the high-payout affiliate model. But meanwhile, a few sponsors, simply greedy or looking to attract more affiliates, may see no alternative to price increases.

Why not give them totally FREE memberships? I'm sure that'll help growth. :Graucho

Who would pay the same price for a 'velvet Elvis' or 'dogs playing poker' ...compared to a Monet?

Walmart is to DeBoers as cheap porn is to quality adult production.

That's not the Wal-Mart business model. It is part of their Retail Strategy, but there is more to it than that (in case you were wanting to use it as a reference to attempt to mirror their success). :winkwink:

And having used porn to get lots of eyes on PCs, sell them something else...

Because we sell entertainment... those who are shopping around to find $1/month porn are also the same cruising the streets for $1 crack whores. Sure price/value can be a parameter, but its not the driving force behind paysite traffic - its the pussy (or whatever your flavor is):

http://www.moviewavs.com/php/sounds/...file=pussy.mp3

and fuck the affiliate on the back end and raise the shavemeter?

pps sponsors have a hard enough time as is to pay the 35$ per

and revshare is barely worth it now adays with shitty retention rates and cookie cutter sites

I think you're beeing sarcastic. If you're beeing for real on this one maybe you should think about it harder.

Wallmart got pretty much no competition. It drove competition away by doing more volume and getting better prices from the production compagny.

Porn has a lot of competition and it's selling a "virtual" good. Wich means pretty much that you can lower the price almost as low as you want.

If a price war would start in the industry, it wouldn't last long.


10 $ sites have been tried too, and they don't work.

walmart buys its products in such large quantities that they can drop the price on their products and not even notice it. Paysites do not do the same. You are comparing apples to oranges here.

Wallmart do their business by beeing able to get the best prices.

Give me hardcore gang bang scenes top quality with exclusive content for 500 bucks and I'l make you a kickass gang bang paysite @ 10 bucks a month.

The business model just isn't the same.

It's like comparing the business to McD... only apparent thing between McD and this industry could be the domain real estate.

If all porn websites were equal then i'd agree prices should come down. When someone makes a decision to buy porn, I think they're relatively price insensitive, it's often a certain model or scene that gets their eye that they MUST see..

Having said all that I think competition will inevitably lead to lower prices.

The Walmarts of the business reduced their prices so low they give their product away for free.

Exactly. :thumbsup

Customers would be willing to pay significantly more for high quality photos/videos as opposed to the common, run-of-the-mill content.

That said, there's a market for both - quality content and cheap crap. But the latter doesn't drag down the value of the former.

You wouldn't go shopping at Walmart for a Porsche (so to speak).

WHA?!?!?!
you got models.. since when??
they some crack-whore welfare chick from the hood?? :1orglaugh

What would the models say.....

"Excuse me, but I know you used to get $1000 for that double anal B/B/G scene, but now that we have 400 sites, you'll need to do it for $250....ok?"

That could be a good idea. But people wont follow you !

And look at how Rolex run their business and how they became big. Why are they not cutting their watch prices by 25% each year?

If you want to compare watches to online porn, Timex might be more realistic, although that is probably insulting Timex...

Year? You should consider yourself lucky if you can get a customer to last more than a month let alone a year. This business is mostly based on short term memberships, not years at a time.
WG

I think wallmart is in the real estate business not the widget business. Totally different business model then porn as the assets porn are not appreciating?

As long as they can keep thier employees happy and stay in the black the property they aquire alone is worth it? Not to mention the incentives they get to build.

yeah without going too indepth as i cant be fucked walmart are a completely different demographic. We are not talking about universal models here

Even better example, look at Microsoft, whose OS prices have been going up for every new version. :winkwink:

sites need to cost 40 a month to pay out those high payouts

You can't really compare the porn industry to the retail industry.

Wal Mart doesn't give 60% of it's profits to K-mart because K-mart is an affiliate.

Wal Mart has been known to sell a product at or slightely below cost, to get rid of another company that is competing with the same product.

Walmart buys and sells on volume, hence being able to move a lot of product, have to buy more, bigger discounts, more money.

I fail to see how porn would compare? Model's wages fluxuate with the city/country, and economy. Rarely going down to begin with. So who's going to eat it on the cost cutting you propose? The company/producers? Hardly.

As some others have said as well. If you are too low cost, then you are considered inferior by some of the seasoned porn patons.

These also tend to be the people who sign up, rape (d/l) your site, for their $24/29/39 and then cancel. Coming back the following year to do the same (i.e. no residual). While it's nice to get their $24, I think any company/WM would agree we prefer the rebilling customers. Not the types I just described above.

$24 doesn't cover even a fraction of the cost for models if you produce original content. So why would I want to fire sell my shit for $10? Have more people doing the same? Nah. I'll pass.

As the cliche goes, I am Macy's, not K-Mart.

:2 cents:

Why do the people who start these posts insist on comparing tangible goods to non tangible goods.

Its not as if a retail customer gets to wander around the street and pick free shit to try before actually walking into Walmart to make a purchase. Ive seen no free Tv's on the street recently or golf clubs or frozen pizza's.

In porn thats exactly what happens - millions of free images float around online that at least INITIALLY ward of a real purchase.

The only way that porn is ever likely to go down in price is if the numurous places to share porn (namely groups/bittorrent sites /file sharing sites: megaupload etc /content sharing forums /password sharing sites) get closed down. It basically leaves the surfer no other option apart from to join.

In addition webmasters could look to control their content copyright more seriously.That is, digitally protect everything so that the member only see's the material WHILE being a member and not actually download it to hardrive etc.

That way they are forced to either pay to be a member and see your merchandise......or not.

As an example - a person goes bowling....they hire shoes.....they DONT get to take them home after......unless they're a thief of course :winkwink: Porn should be the same - limit availability and a surfer will HAVE to pay.

Thats the only way id see memberships meaningfully increase so that prices could come down. Lets face it though, even if memberships go up in numbers - why should the price come down too much - most of the good pornsites are crazyily good value for $25 a month and should be $40.

Agreed mano... very true...

The paysite (i.e. domain) is a real estate and the content is the widget, and a domain does appreciate:winkwink:

LOL. No I go zero models but I do talk to some at strip clubs:)

Explain why you want to bring this pricing model to selling porn? You realize we'd be the orange industry and pickle company don't you?

you all are forgetting that walmart also owns tons of factories (sweat shops) in foreign countries that employ their labor for $20-30 a week...

if you can find me a model factory in Guam where I can shoot girls for $10 a shoot, I will gladly lower my cost from $25 to $2 a month

HELLO??? Did nobody else see this post? Why is this thread still alive? Case closed.

Well said, Richard.


--T

Why does it have to be exclusive? Alot of stuff sold at Walmart can also be found at other stores. Get them hardcore gang bang scenes for less than $100 by the truckload, mix it up with exclusive content, and it should average out to $500 or less:1orglaugh

why would you want that to happen anyways? they more they pay, the more we make! :)

Are you just beeing sarcastic right now or you really beleive you found the solution to all the problems in the industry ?

The difference between wallmart and this industry is too big...
We sell intangible products, with a fixed cost.

Wallmart sells cheaper because they buy cheaper and they buy more.

Cheap porn made in China ?

quite possibly a very stupid post


what are the barriers of entry to opening up a walmart
how easy is it to compete with walmart


what are the barriers of entry to opening up a porn site
how easy is it to compete with an adult site.

The cost to join a paysite is going to go down.

Those sites that can adapt to providing higher quality at a lower price will survive while those that can't or won't will not.