Quote:
Originally Posted by Bill8
The most interesting thing in the shooter wars to me is this question - if content is cheap, and there are plenty of shooters to make cheap content, why are paysites still failing?
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content is not necessarily cheap in the sense of low costs per item, content is cheap in the total context of running a site
let's say you run a site with 52 exclusive updates per year that costs you $2000 each -thats $104,000 a year
lets say you make 1 million gross - thats about 90 signups and rebills a day - there are MANY sites that make way more.
in that case the content is only 10% of your expenses.
but typically about 30%-35% on the average are payouts to affiliates (revshare program)
and that could be a reason why people nowadays rather skip the affiliate (who then thinks the business is dying) and invest that saved money into inhouse traffic generation.
thats why some people are doing very well with their programs and some content producers still do good business.