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I've been out of the loop for too long, but back in the day (when Tube sites were just starting up), it was getting harder and harder to make money. So many peo
by kysol 14y ago
I've been out of the loop for too long, but back in the day (when Tube sites were just starting up), it was getting harder and harder to make money. So many people were starting up, and Visa was cracking down hard on charge backs.
The biggest issue back in the day was Content licencing, which with today's whole DMCA crap, I would expect it to be far worse on a user-generated content site. If you licensed images for a specific domain and they appeared on another domain you owned, you would have legal representatives sending you emails (most of the time you would just do a deal with the owners and extend the license). This wasn't the result of the content being found by the owner, this was from organised firms that were hired just to scan images and videos looking for specific sets that they represented. When I hear about user-generated content sites these days, I think of one giant nightmare when it comes to content.
It's easy enough to throw something together and try to make some money from advertising, but to be successful in that industry boils down to 3 things. Traffic, Quality and Retention.
- You won't get subscribers without Traffic (fairly simple). If you think that you can get organic traffic off the bat, think twice. You'll need to set up some deals with guys who own key domains to have them funnel traffic through to you. (I don't know if this sort of market still exists, but I can't see that it would have died off)
- To convert the subscribers you need Quality or unique content (which the successful sites will usually do in-house or through companies that will work with them to produce unique content). If you're going to throw up a few galleries of cheap $5 content sets that everyone has seen before, you're not going to get the conversion.
- Retention, is a tricky one. Back in the day you used to count on the subscriber, doing a one off then forgetting stinging them with a re-bill or two, or three. Then when they got their bill they were too embarrassed to challenge they usually silently cancelled. As I said before, around the time I left, Visa was starting to really crack down on charge backs as subscribers had actually grown a pair and started wanting their money back. The only way to fight this is to offer what you advertise and more. You won't keep everyone happy, but you'll see a nicer charge-back rate.
For the record, I was a coder, I wasn't the guy behind the camera, or even the guy that designed the sites. I dealt with the systems, and kept them running. It's not a glamorous title to throw around at dinner parties, but it does bring up some interesting conversations when you start talking about the things that you seen in the industry.
- true_religion 14y agoFor the record, he's talking about user-generated content so even if users upload unlicenced materials he's covered by DMCA protections. He won't have to worry about licencing content, since he won't knowingly use copyrighted content beyond what freebies are offered to CPA partners. I think everything you're saying makes sense for a Paysite, but he's not a paysite---just an affiliate and traffic producer which is a bit more downstream. As for dealing with the major players to have traffic funnelled through him, he won't be able to do that initially because (a) traffic trades require that you have traffic to trade and (b) you're going to want to have your traffic stream through organic links and SEM since you likely can't afford to pay for traffic for a non-paysite: the ROI just isn't there in advertising.
- revelation 14y agoAs megaupload shows, it doesn't even matter if you are protected from DMCA safe harbor. If a prosecutor thinks you are not, they will destroy your business without recourse.
- true_religion 14y agoIn terms of risk, I think its far less likely that a prosecutor will go after an adult site than say a music sharing site. The adult market has no one with the clout of the RIAA to lobby congress.
- indiecore 14y agoPorn is a multi-tens of billion dollar business, to think they don't have people in government is silly.
- true_religion 14y agoPlease don't stretch my words to the point of hyberbole. I said the adult industry doesn't have an organization with clout comparative to the RIAA. That's true as far as I know. Do you know of such a broad-based lobbying group for the adult market?