Quote:
Originally Posted by Paul Markham
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.
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I have always said and continue to believe that the tube site is a business model that is born to fail. Mainstream even knows this . Youtube has done nothing but lose money for Google. Porn tube sites have a very difficult time selling memberships to porn site. So they sell dating and cams. I feel eventually those will stagnate and they will become less and less profitable. When those profits drop it will leave the tubes without any other real options as far as revenue streams and they will be forced to make some hard choices. They may have to change and start offering much smaller movies or they may have to close down entirely or start charging a fee. Eventually, I feel, they will shoot themselves in the foot.
The problem with the porn business is many people are rushing to see who can give the most stuff away for free and that road eventually led us to the tube site. How long can sites like that maintain themselves. When you teach your visitors not to buy, can you be surprised when they don't buy? I'm not worried too much about tube sites. I think they will eventually take care of themselves.