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Want To Compete With Tubes? The Answer Is MICROPAYMENTS
I responded to Paul in another thread and typed so much I wanted to post it here. Don't believe what you read below? Fine. Bookmark this thread and get back to me in a few years.
You want to compete with Tubes? Micropayments would work fine with the affiliate model but a couple of things have to happen. 1) They have to be true micropayments. I can watch a $20 DVD for $1 at Redbox, I'm not paying $8 for a clip of two lesbians fucking. Yes, I know you can get $8 for ultra niche shit but a tube can spend a pittance on content and get the same thing, or just steal it. 2) There needs to be ONE main gateway. Not 20, not even 2. This needs to be the gateway to paying for all vendors accepting micropayments on the web. Nobody wants to dump $20 in an account for every site out there so it has to be somewhere they can dump $20 but choose content from every site out there. All content needs to be on the site, well organized (not like most adult sites) and clean. No more black backgrounds and shitty banners everywhere. Mark my words, the FIRST company to get micropayment billing done correctly will become extraordinarily wealthy. 3) The micropayment gateway needs to handle all affiliates for micropayment options, no signing up to 4000 sponsors to sell $1 videos. This would be like a CPA network in mainstream where once you sign up you can promote any video on the site. If you aren't familiar with CPA networks you need to look them up, it's how the affiliate model should be handled and is by industries that aren't so God damned worried about everyone stealing their affiliates. 4) Surfers need the option of purchasing one video at a time or loading funds. A discount could be given to those depositing blocks of money to their account but you can't make the single videos $5 each and $1 each if you preload $20. The minimum load needs to be reasonable as well, $10 is probably best, $20 would work. Bigger discounts could be given for bigger packages. 5) Affiliates needs to be paid on all referrals for LIFE. If you send someone to a single video and they purchase it for $1 you should also be paid when they come back and deposit $50 to their account. This commission should be 50%, no ifs ands or buts. There are so many damn options with a system like this that it's ridiculous. You are taking the purchase down to the pure impulse buy level but still providing excellent value for those that come back for more. Affiliates could promote a single video, whatever collection of videos they choose or the entire damn program. An API could be made to easily allow affiliates to pull whatever content they want into their websites, blogs, etc. People all over the world could afford to pay for porn. Mobile billing and other methods used to get money out of the poorer parts of the world would be accepted. Every video provided by a paysite could be used to upsell that paysite at a REASONABLE monthly fee. ========== Teen Lesbian Orgy - 35 Minutes - Provided by Only Teens. <image> <video description> Watch this full video for only $1.00! Did you enjoy this video? Browse for more or get unlimited access to the Only Teens video library for only $9.95 per month! ========== Of course, affiliates should be paid for those sales as well. THE QUESTION IS, WHICH SPONSORS WILL BE THE FIRST TO ALLOW THEIR ENTIRE CONTENT LIBRARY TO BE SOLD ONE VIDEO AT A TIME, AND AT A REASONABLE PRICE? The sad part is that affiliates and sponsors would make more money under a system such as this than they do now. It wouldn't happen overnight but it would happen. This is the future, bookmark it and call me in 5 years. Peace. :thumbsup |
Sounds like a viable solution! Great write up :thumbsup
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so why aren't you a millionaire by now?
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This will happen much sooner than in 5 years ;)
The main problem I see in your idea though is paying 50% to affiliates. If this is actually done network style, then there are 3 people that need to make money: 1) the network, 2) the content owner, 3) the affiliate. And micropayments are expensive. At a $1 sale, even a good deal would cost you around 20 cents, that leaves just 30% for network and content owner once affiliate is paid. Not really interesting for either even if the network just takes 5%, which for the technology and such involved is very very little, likely a profit margin of only 2%. There needs to be a fairer split or a pps solution in my opinion. 50% after costs MIGHT be ok... |
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Also, I said the gateway needs to be one company. There is no reason that the gateway couldn't be CCBill who would already have their profit built into the overall processing. It would be better if someone else stepped up but they could definitely handle it. Also, for those producing content that is actually good they will get monthly joins from the upsells. I don't think $30 per month joins are the future for most programs but something around $10 is OK on a site that updates and has good content. Just picture one of those hot ass solo girls that has shot enough content to start a site but not enough to justify a monthly $30. Even if she disappears the site could go online as a pure micropayment offering where surfers pay per video only. Producers could fill up their days shooting scenes for themselves after all custom shoots are wrapped up and let the gateway site be the only ones to offer that content. It could go a million ways but the point is to get the sale price down to a level that people don't even think about. $0 on a tube, $1 on the site I'm sitting on right NOW? Same fucking difference to me and millions of other people. I'm ready to jerk off to this sexy ass girl and would rather spend a buck than go check the tubes to see if she's there. The details would iron themselves out but a system like this would increase porn purchases OVERALL. More money, more customers, less headaches. :2 cents: |
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What I understand from what you are saying is that as soon as a monopoly comes along we will all become redundant and that monopoly will become wealthy.
Remember that once said monopoly reaches critical mass the affiliate becomes redundant. |
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Oh and BTW 50% is not realistic. Adsense/Adwords is the biggest affiliate program in the world and the affiliate gets 35%, unless they get "smart priced" then they get a few pennies.
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Micro payments aren't new.... vod sites have broken unique videos out for years and sold them, for cheap to expensive, lots of clip sites have come and gone, even some tubes have done this.
If the person isn't rebilling, it's failing... period! |
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Also, rebilling is mentioned in my first post. |
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Here's the problem, very few people have enough content to make this work. Then if you mixed it with others, it means you have to pay them a cut (and your sales staff to get them) So you have a cut going to aff's, content owners, and the owner directly - ie: Why vod fails. So now you're doing micro payments, and only making a micro amount of money. You end up like the rest of the vod companies, massive income - zero net profits. |
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As for too many people getting a cut, you are looking at it from the perspective of the gateway owner being as greedy as every moron before him. The gateway owner in this case would be a smaller version of Paypal, 5 to 10% would be plenty. Also, there's not much tech involved in this at all. The entire system is extremely easy to setup, the only hard part is talking content owners into adding their stuff. Old dogs like old tricks, even when they are dying from doing them too much. There will be plenty of resistance but some will try it and when they succeed everyone else will jump on board as well. |
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My perspective is from a person that has done it. The gateway could be free, it's cost means nothing. However, no 3rd party could bill this - it would have be done on unique merchant accounts, per client, masked over the org site to not violate visa rules. Taking content, in various formats, sizes, some with dvd's, some with only wmv's, all types of stuff, correcting them, putting them to your system, requiring you to have a team of staff, servers, admins, techs, coders, etc to support such a system - exactly like vod requires. What your talking about is a modified VoD company, which is an extremely complex business model. |
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Didnt this *almost* take off a few years ago?
its an interesting idea tho |
At least someone is thinking now, instead of just saying lets sue all the tubes :)
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As for your second point, hardly any of that stuff is required. If the gateway is hosting the content it would be uploaded as is. If it's so horrible that it shouldn't be sold then it would be rejected. I see no reason that the content couldn't remain hosted on the content owners end anyhow. It would just be another billing method similar to hooking up mobile billing on your existing site. Admins, techs, coders, etc. I'm sorry but there is just not that much involved with anything on the internet anymore. A group of two or three people could easily manage the entire operation and you aren't going to convince me otherwise. I know exactly what things used to cost but they don't cost that anymore. There are websites out there (cough reddit) hosting up hundreds of millions of pageviews per month with a tiny staff and even tinier operating budget. Shit man, there are Tube sites around that were originally founded by one damn person. You trying to tell me a content owner can't upload their own video like idiot surfers do on YouTube? Also, the most important point I want to make is this. You keep comparing this to a VOD or clip store but one thing your examples miss is the correct price point. $5 to $10 to watch a single video is fucking retarded and those sites should fail hard. I don't know how so many in this industry can look at what is going on around them and somehow fail to take ANY of it in. RedBox is booming. NetFlix is booming. Hulu takes the combined efforts and millions of dollars of content that the big networks create and offers access to it all either for free or $10 per month. If you provide VALUE at a reasonable monthly charge people will pay. A reasonable monthly charge isn't $30 per month for content from one jackass with a paysite that is a fraction of a fraction of a fraction of what's available. If you provide VALUE at a real micro price point people will pay. A real micro price point isn't $8.99 or even $4.99 for a porn video. A micro price point is one where when someone links you to a 'OMG you have to see this!' video and you see the price you don't even blink before pulling out your credit card. I have not bought porn in 7 years, even I would pay $1 to watch a video I was interested in. I have not promoted a standard porn affiliate program in 3 years. Even I would send traffic to a site offering thousands of videos for $1 to $2 each. |
Micro payments are the future. For every western consumer you have 20 world consumers with a mobile phone. The problem is the carriers want too big a slice of the pie. When the rates come down watch out. Mobile porn explodes.
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The missing link is an accepted microcurrency
Micropayments are the answer. There is a resistance level at higher payments. MFC is proof that you don't need rebills, and that whales and cheapies will self identify under a reward system.
Someone needs to convince ?Leo? or someone like him to act as a "microbuck" purveyor to overcome the initial resistance. Imagine if MFC currency could follow girls to their solo web sites, with him collecting half the revenue? Some cam girls already use MFC solely to drive traffic to their sites. Once someone tests the waters with a 5$ purchase and finds: 1. CC doesn't say "Pussybucks" or some divorce prelude 2. No rebills 3. No underhanded shit 4. Reward system follows him all over the web, with extra messages and invites, bonus scenes, fansigns, etc - things you CANNOT get from tubes his relationships begin to feel alive instead of exploitive, and that is what they'll pay for. |
stock has revolutionized the industry again this week. (although as doc has noted already tried and failed).
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This isn't a tube filled with 90% shit content, almost all of which isn't hd. Quote:
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Dropping to $20 a month is more than half your money gone - it does not mean more transactions - it 100% of the time does mean less money though. Quote:
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It would be "impossible" for a porn site to charge that little and stay in business, straight up - impossible. |
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Well, I have seen first hand the proliferation of mobile smart phones where I live. 5 years ago most of these fuckers didn't have electricity. Now everyone under the age of 50 has some sort of smart phone to play facebook. If you offered a video for .50 you could literally sell to EVERYONE in the world. The numbers dwarf what is available now. These fuckers will never get credit cards, but they sure as hell spend money for phone credits and horny is universal.
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You can not, not even b2b with your costs ripped out from under you, sell porn for dollars and stay in business. |
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Americans can't bill them through the phone.. sms, etc.. stupid phone companies here blocked us. And nobody is going to enter a credit card, over and over and over again on a phone... it's a real pain the ass to do that. People LIKE recurring memberships... if you offer non-recurring vs. recurring, far more people select the recurring - for a reason! Just like if you offer a scene/dvd for sale, super cheap and below that put a recurring membership to access everything - almost everyone selects the membership over a single item. ....... take a 2 hour seminar, toss it online for free. Sell the same seminar (or others) for $2 per download and zero people will buy it - maybe one guy... but if you offer a $20 a month membership to access "just the next video" not even the archive - more people buy it. 2 = shit 20 = value |
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They continue to grow at an astronomical rate over 10 years, and for a lot of patrons, are the preferred choice on buying porn. So it would seem your 'fail hard' is flawed from beginning to end in regards to not only their business model, but what the CUSTOMER prefers. Sounds like one more exampled of a webmaster thinking like a webmaster, not like the end user or consumer. Which is one of the reasons for your fail and the current state of the adult industry. Mr wizard webmasters who think they know the consumer, their habits, their preferences, yet are clueless. No offense. :2 cents: |
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I am going to take a wild guess that many in this thread do not have their own merchant account, nor have dealt with third party billing (i.e. running their own pay sites) and know the differences between them. The micro payment idea system it's self is not flawed per se, however, you would need to have a merchant account for it to work realistically for the prices you are advocating. Otherwise processing alone... rolling reserves, transaction fees, not to mention bandwidth/support and the rest make it an unsustainable business model. Which does not even touch on the pipe dream of 50% affiliate pay outs. :1orglaugh :1orglaugh :1orglaugh There are many other back end factors that go into this, but as Doc mentioned, it is one of the reasons C4S and alike do it at .99ct a minute. Under that business model, they make money to cover bandwidth/staff/processing fees/reserves/support/etc. based on the volumes of business they do. :2 cents: |
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And airline vouchers? What does that decades old scam have to do with porn? Quote:
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But not at selling clips for pennies, and you would need a merchant account. Nor would affiliates be getting paid 50% at those prices. Only way affiliates factor into this would be at higher price points. :2 cents: |
who will win this thread? theory? or practical experience? stay tuned ...
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Also, I read your other reply. All you see is "rrrghh lower price, bad" but you are missing the big picture completely. No matter how much you can sell under the current systems it will be dwarfed by how much REAL micropayments generate. As for the 50% payouts being unsustainable, your 3 year old videos still costing you production money? Maybe you were talking about bandwidth that is at an all time low... so low in fact that Tubes can give content away for free and still be OK? I know all about the fees associated with merchant accounts, third party or otherwise. Considering the content was already paid for they are near irrelevant. And TheDoc, I have no idea what you failed at but I guarantee you it is NOT what I proposed here. Your "Porn can't live on small payments" is ridiculous. a) Yes it can. b) Keep your fucking recurring website up then. If they prefer it as much as you say then your cheap videos will only upsell memberships for you all day long. I am going to say this one more time. The entire point of offering lower price points is to bring in customers that WILL NEVER BUY SHIT UNDER THE CURRENT SYSTEM. All your talk of ratios and rebill percentages are irrelevant when we are discussing new customers or those that have been pissed off by pornsites in the past. Real micropayments open the door to millions and millions of potential customers that haven't paid you a dime in 5 years. Key word, real. |
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No offense chief, but your rantings simply sounds like an affiliate with some hair brained scheme and absolutely no working knowledge of the back end to pay sites, the processing piece, and how they work. For micro payment system to work, you need a merchant account and rock solid platform to sell from. So it has to be coded well, and minimize support issues. The processing piece is what will, or will not, crush you. Ask around champ. See if you can get most of the adult programs, with histories of upsells, cross sales, and charge backs what their rolling reserves are? Their rates they pay on transactions, among other back end things that factor into this then come back to this thread with some of these price point pipe dreams. The processing, and price point, is what will make or break this 'theory'. Either way, no affiliate is going to promote a site for pennies. Which is essentially what you are asking the micro payment website to charge. Nor is any reasonably sane company going to give away 50% of the revenue on profits so small, much less life time. As I said before, micro payments idea is not bad. This concept of yours however is flawed from beginning to end and reeks of someone without the back end knowledge needed to pull it off, and be profitable for all sides of the equation. :2 cents: |
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Do you not understand that the entire purpose of selling a video for $1 or $2 is to get customers you would otherwise never get? Mainstream businesses often spend $100 to $200 to aquire a new customer that will make them about $10 profit on each order. They are prepared to wait years for their efforts to pay off. This shortsighted ass industry can't wait months. I mean, here you are arguing about affiliate percentages when the difference in cost would be 20 or 30 cents. Also, for the third time. Microniche products would not fare as well as general porn under this system. They would still work but the benefits would not be as immediate. In short, you can wait it out longer than most. Quote:
It is a guarantee that porn will eventually hop on the train but it's never easy getting through to old school folks that have been beating the same horse for 10 years. As you can see from the replies in this thread they don't even understand what I wrote even though I put it in extremely simple terms. |
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Suddenly your south american, eastern european, south east asian (all of the worthless traffic we try to block) has a value. And if I had a library of a couple thousand videos, I would gladly take 500 guys downloading a .99 video over 1 guy buying a $30 membership. The 500 guys could then buy another movie or 2. The ratios in the states might not be that high but when you take the global market as a whole I think the numbers are conservative. |
what is difference from VOD?
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"I wouldn't pay them that, I want my 20 cents extra!" The low price point is for people that normally buy FUCK ALL. That means every extra dollar you make is an extra dollar. It's really not a complicated concept. 15% fees, 10% rolling reserve, chargeback, rebills, affiliates, etc. I know the fucking numbers, welcome to how the rest of the world does business. How much do you think the content producer makes on a $0.79 song from Amazon? 100% fact that it costs an epic shit ton more to produce that song than your 10 minute foot job video. |
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I see what your saying. The downside of giving one video at a time is if the surfer didn't like that one, he's lost and feels cheated. Giving him a better deal has a better chance of keeping him buying.
Could work for one video at a time or say a few videos at a time. Like network of small sites, say 100 sites like www.5dollarsporn.com except with a more attractive name. Giving the surfer access to a handful of videos and the possibility of upselling to a large site. The option would be there for the surfer to buy one site at a time or more at a discount. Affiliates wound send traffic to one main site or the whole group. And get paid for a lifetime of the member re-buying in the network of sites. Why didn't I think of that. :1orglaugh :1orglaugh :1orglaugh Haters please note the LOL LOL The downside is in my next post. |
Holy crap it's useless. :1orglaugh
Just check this fucker in 2 to 3 years please. The whole fucking internet is leaving some of you behind and you haven't even noticed that you're off the train yet. |
OK this is the downside. For a year or two a lot of affiliates with some traffic left won't send it to this network. It simply won't pay them $100 a sign up so they won't send.
As there importance dwindles and the news gets out of this type of deal they will find it tougher and tougher than they do now to get a sign up. Traffic means sweet FA if it doesn't buy. The other downside is it has to be content owners or content buyers who run this. Anyone splitting profits with a content owner simply won't make it pay. And what's the point of splitting it with a content owner when content is so cheap? Why split all future payments when you can buy the scene for pennies? Yes I see it being done in the future. Better than I did it. But it will come and it will work. Maybe someone who owns lots of content and has loads of content like Manwin will see the point of doing it and not paying affiliates or content owners. Then upselling happy $5 customers to a $30 site. Or another $5 site. Costs can be adjusted to suit. |
do it then man. again, show us idiots up, revolutionize the internet, make bank, shows stats.
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Additionally, if it were 'so easy', you would be doing it yourself. Quote:
Furthermore, no one is going to invest a shit load of money in a pipe dream. Which is what it would take to get the platform build, and work properly to start. Which does not get into the processing piece of things. More over the rest of the things needed for this to work on the scale being advertised. The realities of this type of venture you simply refuse to hear. With each post it becomes more clear you are clueless, and simply looking to play devil's advocate on the issue of practicality and viable profitability. :2 cents: |
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:thumbsup |
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