Quote:
Originally Posted by Rochard
I don't think the porn industry is dead. It's evolved. The days of making thousands of dollars or tens of thousands of dollars on solo girl sites is dead, long gone. The days making a network of TGPs and making bank is also gone - people go straight to Google or Pornhub.
The average Joe who grabbed a camera, took some pictures, and then slapped together a website and an affilaite program and quickly made money is over with. Now it's companies that are making money.
People are still making money hand over fist, but they are larger companies. Paying a model $200 to take some dirty pictures doesn't cut it today. Our industry has evolved.
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nobody doubts that the DVD sales and membersite sales went down.
before there was only the "product porn" and a limited number of people that wanted to buy it.
that means: as more people that want to sell it and as more member areas coming up, the cake is shared through more "eaters" because the cake will not become bigger because of a higher supply.
as soon the supply is higher than the demand - prices will go down. this is a 1000nds of year old rule that you can not ignore.
the market today is not focused on this "product porn" anymore.
porn is here to bring the people on the sites where in fact everything can be promoted.
some products are working some are not.
but the ones that will pay to find it out are the advertisers and not the publishers.
a publisher is not a professional marketer - he is professional in generating traffic.
so it is stupid to give an amateur in marketing the sales man job and make him responsable if there are no sales (wich is happening when a webmaster sends his traffic on his risk).
the job of the adnetworks is to find as many buyers as possible that can compete with each other and provide the technique that is needed from the point of a marketer.
as more professional advertisers are fighting against each other for the traffic as more expensive the traffic can be sold. so yes - also here only the smart ones can survive - the dumbs will lose money. but not the one that generated the traffic will pay for that. it is not his fault when a marketer donīt know how to advertise or have a product that does not make enough profit to pay the price.
so by giving porn for free the cake was growing HEAVILY as the profits we make are not based on one product. they come from hundreds of products and the most profitable will always win because this can pay the highest price.
networks are here to concentrate this traffic from many sources in one solution. a big media buyer is not buying even the best traffic when he can spend just a few thousand per month. to maintain a small campaign with just little traffic is too complicated and needs to much manpower. this is why this guys want to buy big numbers and have everything under one roof.
example:
if a mediabuying company pays a professional mediabuyer and his goal is a 20% ROI
it does not make sense to spend 10.000 per month in that campaign. the professional guy will cost much more than the profit. and the labour input to maintain is the same as for a campaign where he can spend 100 or 150 k per month.
to understand how and WHY this biz is working different today means to understand all circumstances and costs from everybody who is part of this game.
if you try to see it from one perspective you will never get anywhere.
in this example you see already that a buyer that buys small amounts can not work with a ROI of 20% - he needs 50 or 100%.
that means that he can not pay that much for traffic as a big buyer can and if someone wants to play this game in small and tries to buy traffic that will make him a huge profit - he will not get traffic because the big buyers are calculating harder and can pay MUCH MORE - so he will end up with no traffic.
the complete internet industry today has adapted this rules wich are not new - they are existing since centuries - but nobody believed that they are valid also in internet.
so everybody that understand this basics and understand a bit about internet technology will beat every dinosaur that did not learn it within the blink of an eye.