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What's Worth More? A Free Site or Pay Site That Nets 500K
so if you went to sell a free site that netted 500K a year and a paysite that nets the same which would sell for more?
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can I have both?
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tough, since a paysite you probably invested more than a free site
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paysite
people going to a paysite have their credit cards out and you KNOW they are spending, so there is more room for escalating income a freesite is a site where you have to beg them to buy, so it is harder to get them to whip out their cards, therefore decreasing the overall value of the site |
if the paysite is having affliates I would say the freesite is worth more since there is probably only one person behind it instead of 100 affiliates who can pull their links. But then again it depends a bit ofcourse ;))))
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It seems like legally paysites have more ground to stand on (2257, keeping porn away from minors), so it might be more attractive for a big time buyer who's looking to go into the adult business.
Guys like that probably have their attorneys do risk analysis and maybe that's something they come up with. |
actually withou any details it realy hard to tell, too many factors lol
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true there are too many possible variables - there are situations where a free site netting the same amount as a paysite is worth more and vice versa.
not a great question now that i think about it. it would be if i gave out more background on each site. |
Right, too many variables. If a paysite relies on affiliates....things can change. But the person who controls the freesite has control over who he/she promotes so that could be an advantage. Also running a paysite has more 2257 responsibilities. Paysites also need to keep spending money on content where freesites don't.
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Well, if they both make the same, I would make a decision based on the amount of time I have to spend on each one. Which one takes less effort.
Then I would base it on where my skills are and what I feel more comfortable doing. The other thing to look at would be their past trends.. is one growing and is the one stagnant? What kind of name do they have in their market? etc.. |
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My viewpoint: If they make the same money with the same ammount of maintainance and both are stable then id say they are worth about the same. If there is a large ammount of retention on the paysite and recurring members then id have to say the paysite is a better investment... or if the free site has alot of rebills / search engine traffic sales then that would edge it in that direction. Also, generally freesites require less maintaince / content updates so are likely to require less effort to maintain income. Its all swings and roundabouts. Im pretty confident i could manage / better just about any freesite however i have no paysite running experience so id be fucked there. |
I would pick whichever requires the least maintenance and the least expenses...
I'm lazy so whatever requires the least upkeep and lowest overhead. |
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I just speak from 8 years experience running free sites and paysites how is that stolen content board of yours going mr seo master? |
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I have paysites I have not TOUCHED or UPDATED in 2 years, they still being in nice money every month my free sites that I don't touch or maintain slowely die...always so, that is my experience i would imagine your stolen content forum has much different experiences |
I would say the paysite, the members area traffic will convert on upsells. You don't quite have that same effect from free sites.
WG |
they are both worth 500k
what weighs more 100lbs of rock or 100lbs of feathers? |
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you obviously know me SO well haha I just had to hire 4 more full time employees....how is that stolen content board going? |
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What was the biggest paysite 5 years ago? Karasxxx?
What was the biggest free site 5 years ago? The Hun? I think there's your answer. |
When I think about it again, I would go with the free site as being more valuable..
Why? Because the free site has the TRAFFIC. In internet terms, traffic is king. With the traffic from a free site, you can create as many paid sites as you want. The paid site is dependent on others for traffic.. a big weakness... |
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I'll buy the freesite if both is generating the same income....just the fact that freesites are easier to run then a paysite.
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Let me explain this to you in simple terms. There's a 7-Eleven on one side of the street. There's a Mega Super Duper Gigantic Walmart on the other side of the street. Who's store do you think gets more traffic? And now ask yourself WHY that store gets more traffic. Ask yourself WHY they come back, and WHY they buy from them. The picture should be clear to you. Now go back and think about your statement. Think long and hard about why content is king. |
I'd opt for a domain name earning 25% of that money with no work, but that's me :)
if chosing between free site and paysite i'd raher own e a free site, (we talk about tgp's, right?), especially if this was a free site like thehun, not facing 2257 issues |
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That's a strength, not a weakness. |
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A free site doing the same would be tough to get to but the profit margin would be far more. Less staff, less content, less BW unless he hosts everything. Less everything except getting the traffic. The paysite has one very big expense, getting enough traffic to sign up 35 a day. Not a lot but think about the costs. The problem is getting a free site to produce $1370 in revenue every day. The question as always is too vague. MrLuvr traffic is not king, selling it something is king. |
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You should really stick to the "would you hit it" threads, the business threads are way over your head. |
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Many were blinkered to this for years and we are now suffering from it. |
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If the paysite relies on affiliate traffic to make that 500K, and the free site makes most of it's money from bookmarkers, then the free site is worth more.
It's hard to say in general though, because there are alot more variables in play than just "pay" and "free" |
uhhhhhhhhhhhhhhhhhhhh
ok I guess this is just one of those... uhhhhhh where noone wants to be right for the sake of losing business.. but seriously speaking.. if a paysite generates 500k they are much likely to monetize that traffic then a free site. I guess you can say if the freesite generates 500k of its traffic from SE and the paysite generates all its volume from affiliates then yea the freesite is worth more. But laws of average say CLEARLY the paysite is worth more.... |
Free site with out a doubt.
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What Quashe said...If the traffic for the paysite depends for 80% on affiliate traffic, I would say the freesite. When the paysite is working on it's own, the paysite...
When you have such freesites, and you hire the right ppl, you should be able to create a nice paysite yourself.. |
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Though I would go with the free site to start with... Thus a free site would be a better investment. |
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If you're generating traffic for a few random programs, you control nothing. You may like your hair cut a little longer in the winter, but... BZZZZZZZZTTTTT. When you've built someone else's brand, you're at the mercy of someone else. Their tour, their conversions. They control everything, including that check they send you. Businesses that don't control everything from start to finish are setting themselves up for big failure in the end. |
there are too many factors to judge adequately.
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free site for me!
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