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kane · 11-08-2008, 11:01 PM

It seems every year people say that the paysite model is dead and affiliates will be cut out and the industry will be down to 2-3 big players within a couple of years. We have been a couple of years from this for a long time now and it has never happened and I don't think it ever will.

Sure, tube sites have cut some people out of the pie, but eventually they will stagnate. Why? Simple. We are not mainstream. Mainstream sites have an endless pool of potential advertisers. Our main advertiser is porn. We use porn to sell more porn. In the case of the tube sites they use tons of free porn to sell dating and cams. But most of their traffic is book marker and freeloader traffic and they will eventually tire of seeing the dating/cam ads on the site and they will have less and less draw. Think of the TGP model. Many TGPs would have the same banner on top of them for months but eventually it stop preforming so they would replace it. The problem with a tube site is there is nothing to replace dating and cams with. If people tire of that it will be very hard to sell them a paysite membership when they already have more free movies on the tube than the paysite they are selling has. This leave the tubes with a ton of viewers and limited ways to monetize them. Lest we not forget Youtube itself has yet to turn a profit and they have a huge pool of potential advertisers. But the tube argument isn't really the final say all end all in this discussion.

There are tons of people not going to tubes who are looking for porn. Also there are many affiliate programs who are fighting to get affiliates. It seems like a week doesn't pass on this site that there isn't an announcement of some company expanging or starting up and looking for more affiliates.

Look at it like this. If you are an affiliate program and you sign up 100 affiliates that just send you 1 signup a week that is 400 signups a week or 1600 a month. Sure, you aren't going to run out and buy a new Bentley with that, but it can add up and the cost of keeping those affiliates around and happy is pretty low compared to the cost it would take for you to hire people to work just for you and have them develop the resources to create that same number of sales. Not to mention if you hire a couple of people who can generate a large amount of sales on thier own, how long until they leave you behind and go work for someone else. If I can generate 400 sales a month unless you are paying me around 12K a month I'm gone because I can make that selling my traffic to other programs.

the affiliate model is going nowhere anytime soon. The paysite model will be around for a while too. Billing options may change. Upsells, content presentation and sales techniques may change but all paysites need traffic and affiliates are a fast and relativly easy way of getting it.

Things do change, but I know for sure that in 2 years I will be reading posts about how 2-3 years from then there will only be a couple of big companies left, no paysites and no affiliates.

11-08-2008, 11:01 PM
kane Too lazy to set a custom title Join Date: Aug 2001 Location: portland, OR Posts: 20,684	It seems every year people say that the paysite model is dead and affiliates will be cut out and the industry will be down to 2-3 big players within a couple of years. We have been a couple of years from this for a long time now and it has never happened and I don't think it ever will. Sure, tube sites have cut some people out of the pie, but eventually they will stagnate. Why? Simple. We are not mainstream. Mainstream sites have an endless pool of potential advertisers. Our main advertiser is porn. We use porn to sell more porn. In the case of the tube sites they use tons of free porn to sell dating and cams. But most of their traffic is book marker and freeloader traffic and they will eventually tire of seeing the dating/cam ads on the site and they will have less and less draw. Think of the TGP model. Many TGPs would have the same banner on top of them for months but eventually it stop preforming so they would replace it. The problem with a tube site is there is nothing to replace dating and cams with. If people tire of that it will be very hard to sell them a paysite membership when they already have more free movies on the tube than the paysite they are selling has. This leave the tubes with a ton of viewers and limited ways to monetize them. Lest we not forget Youtube itself has yet to turn a profit and they have a huge pool of potential advertisers. But the tube argument isn't really the final say all end all in this discussion. There are tons of people not going to tubes who are looking for porn. Also there are many affiliate programs who are fighting to get affiliates. It seems like a week doesn't pass on this site that there isn't an announcement of some company expanging or starting up and looking for more affiliates. Look at it like this. If you are an affiliate program and you sign up 100 affiliates that just send you 1 signup a week that is 400 signups a week or 1600 a month. Sure, you aren't going to run out and buy a new Bentley with that, but it can add up and the cost of keeping those affiliates around and happy is pretty low compared to the cost it would take for you to hire people to work just for you and have them develop the resources to create that same number of sales. Not to mention if you hire a couple of people who can generate a large amount of sales on thier own, how long until they leave you behind and go work for someone else. If I can generate 400 sales a month unless you are paying me around 12K a month I'm gone because I can make that selling my traffic to other programs. the affiliate model is going nowhere anytime soon. The paysite model will be around for a while too. Billing options may change. Upsells, content presentation and sales techniques may change but all paysites need traffic and affiliates are a fast and relativly easy way of getting it. Things do change, but I know for sure that in 2 years I will be reading posts about how 2-3 years from then there will only be a couple of big companies left, no paysites and no affiliates. Last edited by kane; 11-08-2008 at 11:02 PM..