Quote:
Originally Posted by VHNet
In bad times only smart, and lean companies make it. Others get bought out or close up shop. Best time to be in business is right after a economic downturn recovery. Less competition.
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Agreed.
I think many adult companies were over leveraged when this economy took a shit. Add in the changes in the credit card market, plus the tube explosion, and you have as Robbie had put it, 'a perfect storm', that wiped out a lot of companies.
I remember a few years ago at the Miami show one of the merchant processor guys telling me how most of the programs in the adult industry would topple if something changed like cross sales, or credit climate. The point being, they were barely staying afloat as it was bouncing their sales off their various MID's with upsell/cross sales. Which was not a good position to be in. Then it hit.
On the bright side, it's wiping out most of the low lying fruit and those who never learned to sell in the first place. So should be a better industry once things turn around.
