Quote:
Originally Posted by kane
If I run a TGP and I get 100,000 freeloaders a day I may not sell them a membership, just like the porn store didn't sell the guys in the jack booths a video or toy, but I can use them to make money. I can sell advertising based on the number of visitors my site gets. I can also sell the traffic in general to a broker. I can trade the traffic with other sites and I can redirect them to other offers/sites which could net me a return. So maybe I don't sell them membership or a tangible good, but I can use them to make money. In that case you can argue that any visitor to a site is worth something. Even if they don't spend anything on my site they can help with the bottom line.
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The guys in the booths did buy something. They could of paid more than those who bought the video. I do know those machines were very profitable. Today lots of those guys jerk off to a Tube site video.
OK you can sell the traffic. But the price of that traffic is based on how much it buys. Traffic does not equal profit, it's what the traffic buys that makes the money. Yes you can sell them to another TGP, dating, webcam or paysite, but then you're running out of options and unless Coca Cola start skinning GFY or The Hun or Youporn the profits from the traffic are going to be limited. We need to focus on selling more to the traffic we have.
Have we focused too much on pushing people around the Net and not enough on stopping them to buy something? A site with a conversion rate of 1-500 is missing out selling something to 499. Today is it easier to get 1 of that 499 to buy something or get another 499. And if you say get another 499 will it be the same quality and where will it come from?
I think it's often lower quality and it comes from another site who then steps up it's marketing to get it back. Short term solution.