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Originally Posted by The Porn Nerd
It's not just traffic and what they make per 1k, as ADG pointed out. But you also have to throw in assets, like real estate, stocks, private corporate investments, partnerships, tax advantages, etc etc. Once a company gets over, say, the $5 million mark then things 'change' in ways most 'average' people cannot fully understand. Most people do not realize the sheer economic POWER of 100 million dolllars and what that can do.
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To make $1 billion a year from 100 million uniques a day they would have to be making a little under $30/k and that just isn't happening today. Considering the traffic type and with my experience running legal tubes I think even $10/k would be a serious stretch. That $10/k would include all income from ads, dating, cams, premium, everything. For comparison FFN has an estimated annual revenue of about $300 million but a lot of that is eaten up by ad buys and affiliate payments (in fact they have been net negative for a while due to various debts). Adding up all the revenues of all the adult companies would not be an accurate gage of the industry worth since it includes the same money multiple times. That is, say FFN pays MindGeek $100 million in year for ad buys. FFN counts the income gained from those ad buys as revenue and likewise Mindgeek counts the money earned from the ad buys as revenue so the same $100 million is double counted. I agree on other investments outside of porn but that's outside of the scope of the focus.
PS- Ironically $30/k probably could have happened back in 2006 before they started giving 100 million people free porn every day. But it's not happening now on that traffic. They hurt themselves.