Quote:
Originally Posted by JTWilson
The profits after the sales for AFF look to be in the $20MM+ range, so I don't see what you're getting at. Sure, their margins aren't the best. Yours are probably much better. But let's think which is better. Making $2M with 90% margins, or making $20MM with 10% margins?
Let's also not forget what we are talking about here. Sex dating sites are all misleading. There is bullshit going on with all of them. 10:1 male to female ratio with tons of bullshit pics and deceptive things. Of course retention isn't going to be the best. But here is where the trade-off lies. You can either become 100% legit and get WAY fewer initial joins with higher retention, or you can be like all the sex dating sites and do TONS of initial joins with lower retention. I'm pretty sure I'd take the latter, because I think the amount of initial joins is greater than the rebills would be with lower sales volume.
And yes, I'm totally OK with this because I think I'm making more money like this. I don't care if it's because of rebills, cross sales, high volume/low rebill, or whatever. Dollars and cents. That's all it is.
And why do you always bring up tubes? What do tubes have to do with this?
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Is it any wonder we are having problems in this industry with people like this in it? Still going down the same old road that does not work and not seeing the road that does.
The consumer is not an infinite market. It's a restricted and with limits. When one get's pissed off buying something that did not live up to what he was told, he tries it again and when it still does not live up to what he was told he stops buying.
If you can't link the way this business has dealt with it's consumers and Tubes you're not thinking straight. The consumer is not there for you to do with as you please.
The profits don't pay the debts, so there are no profits.
Antonio maybe you're right. Someone might pick it up for a song, they might go Chapter 11 and wipe the debts, they might sell it to themselves for $1 and keep going the same route. I agree they will still be around. But how long will the consumer keep buying and what will be the shape of the future business is a big question. How long will they carry on supporting practices that don't make a profit or a very small one?
The future is going to be tough, companies that deliver can survive, companies that don't are going to find it tough. Because people will be looking closer and closer at what they buy.