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Old 08-02-2010, 02:41 PM  
harvey
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Originally Posted by BestXXXPorn View Post
I agree with the exception of the affiliate model going away. That's just not possible and really, it's quite humorous to even think that would be the case. Affiliates are like retail stores; they offer different outlets and reach different customer bases you, yourself, can't reach without tremendous effort.

Not supporting the affiliate model would be like a company ONLY selling direct. Sure, you can do it but you aren't going to grow nearly as fast or reach nearly as many people. However, a small, profitable program or two may be your ideal situation if you don't aspire to achieve a higher level of success. You may be happier with less management and a higher margin. Don't come crying when the big dogs push you into the ground though ;)

If you place the adult industry into the retail analogy you'll see exactly where the industry currently sits. If sponsors are the manufacturers / brands and affiliates are the retail stores... Some brands will try and run their own retail store and carry their own stuff only... some will succeed and stay around for a while until the brand dies, many will fail. Some will also carry other brands in addition to their own; some will succeed, many will fail.

Out of the mess a few Walmarts and Targets will rise... currently Freeones probably fits in that category. These big "affiliate" players will make more money than any individual manufacturer because they push so much traffic. They may even launch their own brands to sell along side everything they carry for everyone else. It's the wise decision.

There will also be many niche stores which carry specifics that will do very well in their own regard and become a more recognized brand than any one of the individual brands they promote.

This is the way of things, this has been the way of business since the dawn of time. Nothing has changed, only the environment has changed. The online industry went through this during the .com boom and bust... The adult industry has been sheltered from being a true market because of the stigma attached to adult related stuff (keeps big businesses out). However this is changing RIGHT NOW and in addition we're getting the full brunt of the digital piracy.

Let's not kid ourselves... even if there weren't so many FHGs and free videos, all your content would still be available out there somewhere illegally...
When I said the affiliate model dying I should have said "the affiliate model as we know it". Of course there will be huge affiliates many companies will love to keep, and same for small sites with no traffic of their own. But going on a strictly economic POV, how much money "vanished" in the air from affiliates the last months? Millions for sure. And that is just the beginning. ANd quite honestly, do you think those companies will leave the business? No, they'll change name, front faces whatever and come clean... with all the business affiliates built for them. Simple as that.

On the other hand, sites getting shitloads of traffic won't need the hurdle of affiliates, at most a few big playas and that's it. Besides, once affiliates realize all their hard work is in risk of vanish from one day to the other, they'll be warier and warier to get into another program. At least, that's how I see it
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