YouPorn owner says "it's not a profit center; it?s more of an experiment"
 

and he tries to unload it for $20 mil to Vivid and A.E.B.N. ?

I picked up the new issue of Portfolio and came accross this article. http://www.portfolio.com/culture-lif...inment-Profile

I never looked into the tube sites much but after reading this article I realized how much money these sites are probably loosing. I know of a way to make these sites extemely profitable but should I even approach them about it? This business seems to be killing many of us.

Do you think they will survive?

This is not anything like the tgp argument many have had in the past. Tgp's never paid for the bandwidth of the content... it was the submitters. So obviously the submitters were taking that into account to make their posts profitable. And tgp's spread like wildfire because of the low entry cost. But these tube sites are burning massive bandwidth and creating a HUGH collection of very valuable content all available for free. They are going way beyond what tgp's ever did.

Obviously this is what people want. But how can tube sites survive with this model if it is going to slowly kill the only other model that will support them? Paysites need to buy ads from tube sites for them to survive. The only sites to be able to do this are webcam sites, dating, and site with content that is very different from the more amateur style they provide.

Maybe it will just kill the Amateur market?

Will the huge startup costs of these sites prevent them from taking over or will we support these sites enough to make them profitable and sacrifice the amateur market to make money in other markets?

Great read...
http://www.portfolio.com/culture-lif...inment-Profile

sig spot secured

What is damn odd is I in essence created a near tube style site, just without user submitted content. It was also an experiment I was doing and I wanted to see if a free "paysite" could sustain itself off of nothing more than upsells, not even using an email mailing campaign or login scheme.

Needless to say even with just posting sponsor provided content and hosting it myself that even after a year it was still loosing money each and every month. I did not however attempt to sell Dating sites as they were just not that popular or known several years back. So I stopped updating and began to disassemble the material as I could not make enough money upselling to porn sites. Cams did ok, but not well enough to justify the site though.

That was my experiment and I knew I stumbled onto a fucked business model years ago thanks to that. I went into it expecting to either win big or fail in a spectacular fashion, I did the latter.

Yeah, our industry isn't like the mainstream world. We tend to purchase things already making money that can smoothly integrate in with our current business models.

If he isn't able to turn a profit on it, then big vod/paysite companies will never make a profit from it.

Tube sites will be around forever.. This is only an example of a Webmaster with no marketing and sales skills.

People shouldn't expect to make massive money off tube sites.. the purpose of tube sites is viral branding and brand recognition.

That style of thinking is why they fail.

I have no clue what uts about so click my sig and promote new solo slut Kerri at http://WWW.SLUTKERRI.COM

Viral branding plus $1.75 will get you an extra large coffee at Tim Hortons.

Tube sites burn the bw, we all know this. So before starting one you should already have the cheapest bw possible, with room for it to get cheaper. From here, most tube sites don’t include enough advertisements.

Branding and Viral marketing is for the paysite/affiliate program. The tube owner, should care less about that, and only worry about paying the bills. They should be aggressive, over ads, video over lays, corner peal ads, hosted galleries, a blog, ect, ect.. If someone is going to hot link a video, it should have a clickable overlay.

Most tube sites are using 2 or 3 ways to try and earn an income when they have 100’s of possible revenue streams to capitalize on.

Quote from the article

All the features were free, and, as Jones admitted, the advertising revenue was meager—about $120,000 a month.

which equals 4k per day
4,000 bucks a day cant be that bad ....

Even Steve Hirsch, who is one of the best marketers in our industry could not see how to get it to be a successful business. He had the youporn on his plate and refused to take a bite.

I know how to make it profitable and I am sure many others have a few ideas but the question does not seem to be how to make it profitable... the question seems to be are we going to sacrifice the amateur market to support this new model?

The more I think about it the more I think that is what will happen. These tube sites are the king of amateur content and nothing will be able to compete.

I just think it is giving WAY too much away for free.

lol. yeah not too bad. he probably going through $5 mil in bw a year from the sounds of it.

Nothing against Steve Hirsch, he has a great company - that does great with what they do. But he is very far from one of the best marketers in our business. It was a smart move for him to turn it down, it's about 18.5 million over priced.

Tube sites send sales.. Last period, one alone sent me about 30 sales. Just because some people don't know how to make money with them, doesn't mean others don't.

I hope youporn does not change. Its fantastic how it is, but sadly no matter what they say great sites will always sell out :(

I am not saying you can't bring in sales from the tube sites. I think tube site can become profitable even though I don't think many are now. I am asking if you think it will kill the amateur market in the process?

i read somewhere, not sure if its that article or not, but youporn is making $120k a month, thats not chump change...

Man that chick is nasty

Amateur porn was the first porn online and it's the most common porn online, it isn't going away. People will always pay for quality.

Free sites, tgp's, newsgroups, irc, ect have been giving away free porn for 10+ years and people continue to buy, and buy.. and buy.

The Article also talks about porn being recession proof.. That's is a stupid statement. While one country in a recession may not kill us, a global recession, even a small one would be a knife right in the back. People give up personal entertainment when recessions hit. The biggest threat to our Industry right now is a world wide recession.

Don't be fooled... How much a company makes means shit. It is all about profits. Yes, they are making 120k per month but they are probably spending $400k per month in bandwidth. Would you want to own a company loosing $300k per month?

Obviously I don't know how much they spend in bw. This is just my educated guess based on how much traffic they get.

I can make a million a month, selling dollar bills for 25 cents. It will cost 4 million a month to do it, but damn, think what you coudl do with 1 million a month income!

Bingo!!!

i don't understand why jpv keeps saying that tube sites are all about the amateur porn - any time i've checked out a tube site or a torrent site there are tons of movies from the biggest paysites on the Net like Bangbro, NaughtyAmerica etc and tons of movies from the big LA gonzo porn studios.
Lots of amateur stuff too.

Free sites and tgps are not a big deal for the reasons why I explained in my first post. These are just marketing engines.

IRC and many other file trading has been a problem though... but I see it as a different problem. There is no doubt alot of content is being shared out there. But many file sharing networks are being loaded with garbage by webmasters trying to protect their content. Plus people need to worry about what they are downloading from other peoples personal computers. People realize they can't just download anything because of the risk of viruses and other stuff that slows down their computer. So some are willing to pay for the peace of mind of not fucking up their computer.

But tube sites... no viruses... no popups... no hidden charges... large videos... new amateur content produced every minute. Plus amateur does not need to be quality. Youporn is proving this right now. People love the non quality true amateur feel.

I have seen other stuff like that also but I noticed alot more amateur content. Plus the videos are not good quality and this seems to attract more of the amateur audience. Alot of people seem to keep going back to this site to see more bad quality videos.

I don't see those larger producers posting alot of long videos though. They seem to post the same stuff found on tgps... 10 seconds to 1 minute clips.

The long amateur clips and the interactivity of the site seems to be what drives the tube sites.

I don't know... I see alot of videos on there without watermarks that are very long. If these are from studios then I can't figure out why they would post them unless youporn paid for them?

I know very little about the tube sites. I never spent much time on them. I just read this article today and wanted to see what people thought. Educate me :) If I can make some money here I will. I just won't give away my content by posting 10 minute videos and I hope these tube sites don't hurt my business by posting 10 minute videos. I don't think it will hurt my business since my content is different. It is much better quality and people will come to me if they want better quality.

So I guess this is why I feel the amateur market will suffer from this more than the other markets.

:321GFY .....

Would someone explain to me again why the 17 year old girl next door can post without 2257 docs or office requirements ... but If I photograph her 19 year old sister I have to under penalty of prison.

ummmm surfer alert !!!

There is certainly a prophet model to them however only a couple actually got it right. None of them been mentioned on this board yet.

My little video site does great so I think I got it pretty nailed.
The business model on video sites is very very different and not doing a couple things when ya got one going will rape your ass in costs if you got no idea what you are doing and maybe even if you think you know what you are doing.

I watch a video sites and see what they do and some of them are on a clear downward spiral as they miss some key elements that I think are vital.

Here is the only way you can do a tube site properly:
www.snizzshare.com

Everyone who submits content on there gets paid for it.

Simple.

ding ding ding we have a winner boys lol

errr maybe PROFIT :thumbsup:winkwink:

and that's CDN $:winkwink: