Quote:
Originally Posted by JTWilson
WTF are you talking about? They are selling plenty. Last time I checked, AFF had nearly 1MM users paying $19 a month, which equates to roughly $180MM in the first 9 months, with operating income of $17MM (dragged down by Penthouse's losses.) That interest and other expenses stems from Penthouse and most likely from that $414MM of debt. If Andrew and Lars didn't sell, guess how much of that $414MM of debt they would have.
Also, you can talk all you want about selling customers good products, but guess what. These are adult websites. This isn't Comcast or Sprint. It's a monthly, subscription based, adult website. Could you maybe give me a list of other adult entities that net $20-30MM a year?
You, and many others, need to start reading. If you did, you'd see that all those numbers don't include solely AFF.
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Where did you learn your business skills?
It's not just about how much you're selling, it's what the profits are after the sales that's important.
OK Penthouse funded the acquisition by taking out a loan, it happens in the business world. The idea is to take the company, then the profits from the company will repay the initial loan, usually increased profits. This did not happen so all the sales were not enough, or cost too much or the guys at the top skimmed off the profits. What ever is the reason it did not work.
So a top site selling a less than good product is good for you because this is porn. About as fucked up a theory as I've heard. Unless you can totally lock the customer into buying you will lose him with that approach.
Look around you and see what happens in the real world. Sponsors spending more and more on traffic to get less and less on sales. Because the buyer is a repeat buyer and he's not taking it any more.
And if you seriously think a free Tube site should be an alternative to a paysite you're screwed. If we can't give the customer more for his $30 than what a Tube site gives him we are in the wrong. And if the customer only needs something that costs 2 cents to satisfy him, why are you charging him $30 in the first place?