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Originally Posted by cam_girls
Congratulations on being the only person to post alternate figures. I just checked Cams.com and they have 306 models online and 232 free. That's 1/4 in private. Who would work all day for 30 mins * $1.50? Oh yeah I know, I'm just a hamburger stand don't mention big sites, deary me.
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Did you totally skip over John Marco's post?
Quote:
Originally Posted by John Marco
Your figures are SO wrong. They are not even close to reality.
Processing -- 10 to 12%, even with merchant account -- you don't get a better deal than this until you have a lot of volume. You could use a US based merchant account and save 3% of this, but then you have to deal with a 1% visa cb ratio
Models -- 35 to 40%
Affiliates -- 25 to 30%
So, you have 18% to 30% left over to cover fraud staff, customer service staff, development, general administrative costs, and marketing costs. You will need a full time fraud team, and millions spent on software development to get a decent product that can compete with current sites, plus expert product managers, senior developers, etc.
People who are saying it is easy are completely clueless. Webcams is the most complicated business in the adult marketplace, which is why there are only a few big sites.
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Where are you??? I figured the Mickey D's reference might put things in perspective, guess not. I'm sorry, but guestimations of your potential for profit based on a 2 year old IPO of a company that took years and years to build are fantasy land follie, and not to knock anyone's dick in the dirt, but have you been paying attention to where that stands lately?
Let's recap- What you have right now is a domain. You don't have the $$ to invest in building out proprietary software and you don't have the skill to build it yourself. You don't have any talent signed on and you don't seem to have any talent management experience. You also need traffic to generate revenue, and you don't have enough marketing experience to build traffic on your own either. So at the end of the day, with no funds to get you started and no working knowledge of how a cam program is run, you're basically squatting on a domain.
Right now it's like you're sitting at the table with only an ace in your hand putting it all on the line counting on the 4 cards you need to get a royal flush falling in your lap.
A strong domain only has potential when in the hands of a capable person and you have no business plan.
Going back to the card reference and you with your Ace.... If I've got a K, Q, J, 10 what makes me need YOUR ace? There are other aces in the deck, or I can get my straight by getting a 9... Maybe I'll make my own luck.
What I'm trying to get at is you have one component, to make a business work you need alot more than just a domain, and as you have seen with successes such as livejasmine, it's not always necessary. And although you have a strong domain, it's not a one word domain, it's not as strong as cams.com, or webcams.com. Someone else could easily go out on their own and negotiate the purchase of an equally as strong domain and not have to pay a dead weight partner out a percentage of the earnings over an indefinite period of time.
Just a few domains that are currently for sale-
mycam.com
youcam.com
partycam.com
webcamcentral.com
camcast.com
camhub.com
fetishcam.com
etc..
Let's take camdivas.com for example... it may not be as strong as camgirls.com, but it only costs around $2,000. The money saved can go into infrastructure and marketing, and the business is on it's way. Pull everything off and get a better domain down the road. End of story.
I can't imagine making a $350k investment and having no clear plan of how I was going to go about getting my return. You put the cart WAY in front of the horse.
Even with where you are now, you are fortunate enough that you can still get out. At least 2 program owners have publically expressed interest in picking up the domain at cost, maybe you can raise the price a little and get a tiny profit- but don't get greedy about it.
OR you can eat a slice of humble pie, join a nice revshare program, learn about traffic generation, and build your business from the ground up. Maybe you can bring in enough to pay off your loan / investor as well as start putting aside $$ to eventually start to build your own program.