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Avoid this deal like the plague. Check Adam's history here to get a taste of why.
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The working capital problem gets compounded 1000x more if someone wants to offer an affiliate program that pays PPS for a cam site. They would need a huge amount of money to float that plus working capital. |
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At any rate, my history is fine, been in biz for 14 years and that little glitch won't darken my day any longer than it did, what a year ago? |
If a cam site takes off it will run cash flow negative over an extended period with processor lag. I am not sure that even daily payouts will help and I would avoid PPS until you are 2000% sure you have a good fraud team in place. You either need to be hands on or have a team to be hands on 24/7..... and it costs.
There is no such thing as cam software that does not need development. It may not be what the member or model sees but software to screen various parts of what is going on from account photos to galleries to member buys and member spends. If someone wants to see Lassie in a room you better have a keyword logger that finds it and you stop it before it happens....underage and unregistered models same. 2257 from non western countries are not easy and need people to screen and verify them as well as being structured in a manner that meets the law. If you use first world models then you may need to underwrite a minimum earn on a growing site and it cost. So far this month I have more than 1200 active studios earning money. I dont have any studios myself so all models work for those studios. The accounts department is another expense and with changes to payment instructions and paying studios and affiliates its a large cost. To sum it up....you need cash, you need to be able to multitask and you need to be able to juggle the pieces and keep them all in the air. Anyone that can do this and has experience doesnt need the money and can do it themselves. If your software is so hot find someone who can do it...take some upfront and some backend and let them do it. |
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1200 studios or 1200 chat host??? 1200 studios is a lot of studios.
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I have also looked at a lot of camsite softwares and I too have yet to see one that was capable of efficiently managing a site without a lot of back end modification. If you don't know what you are doing you will be an easy target and as cams2chat indicates, with cam sites you will live or die not on how many whistles and bells your front end has, but how many backend and operational holes you failed to plug, and how many frauds you failed to detect. And if you nail that down, there is still that ongoing working capital requirement so make sure you don't blow all your money on set up and traffic. |
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cams2chat (and associated sites) is a very big and very well run business. |
A lot of excellent advice and experience in here. Good to see some of you doing well.
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Yep
People hit me up all the time. "I got this cam idea and its fucking huge" After a few months I never hear from them again. The cam biz aint for little boys. Go big or go home! |
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Aiming big and throwing money at something new is not the answer. If the basics are not right you will fail. If you don't have a lot of money, you need to do things slower but you can still succeed if you offer something different to the others and of course a little luck helps also :) |
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Or any idea for that matter.. people always rambling off ideas they never see to fruition.. most of mine I build out, not all did extremely well, some.. but thats another thread about proper marketing.. as for going big.. couldn't agree more.. but starting small can lead to big.. I honestly said I wouldn't do this unless it was very well-funded and/or partnered up appropriately traffic-wise... with capital for op costs including talented staff. |
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You're a successful cam site no doubt. But we're talkin giant here. @ Adam.. just keep at it and you'll find the right team for this project. |
No leroy, this thread is about dreams of being giant. In any case I thought you were an affiliate rep rather than the owner of DTI Cash?
Am I wrong there? |
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Oh some asian cam sites I know well, wrote here.
I can gossip here that some cam script vendors joked with me about 99% of their customers being wanna-be cam pimp's, often former customers, who will invest $3k to $7k in the software, contact the models they know (from paying them per minute before), then having no $$ for advertising or clue how to run it all. So 99% of the sales of those cam script vendor is from licenses of sites that will fail, where 1% it is sites who stay up, that's actual gossip from talking them, not a joke. The cam script vendor know the guy ill fail but he sell the license and that's fine, if the cam site fail (as it should) that's not the fault of cam script vendor :) I agree with the million dollar cash to start a cam site, this was said in another thread time ago. Maybe it is possible with $500,000 but needs be smart really and to pre-own something (software, customers list or else) to cheat a little. Consider you need to have sales of $3k to $5k per day to keep a cam site up barely with 20-30 (not all philipino or colombian) models online (at same time, so db of few 100's) and happy. If you want 200 happy (from db of 1000+) calculate 5-10 times the sales, and so on. Running a cam site is like run a bank, move lots $$ and make a small % on it. When you start a site it have zero customer and 20-30 models who will write in forums after few datys that your site has no traffic and it sucks (whatever your software is good and you pay then big %), so the first weeks you need to spend like $10,000 a day in adverts to keep some reputation, and it will convert worst then developed big sites, so it will be a big money burning for a while, no way you make profit at start. Note that you cna't hope in traffic from affiliates, they'll stick with big cam sites at the start, so you'll have to buy brute force with dollars to traffic agencies and brokers. As someone said, most new cam sites consume all the advertising money before to reach the critical mass - and without such a minimum, the models quit and the members too, it is a disaster, unlikely photo sites where the content do not "quit" your pages and keeps there... in cam sites it is same as your member area gets deleted, formatted. About hire the cam guru who is experienced in all areas, these are who run cam sites today and so not available really, why a cam guru should be unemployed or without an own cam site, I wonder? I would then consider merge and acquisition, so to buy one or two small cam sites and hire its mini-me cam guru's & models / users db's to consolidate into a bigger cam site, this would retain (inherit) contacts and proven stuff and people into the venture, and customers base. Lately a few failed cam programs was acquired either by streamray or myfreecams, now you go to their url's and brings to streamray and myfreecams, and their customers and models moved there too, as possible. Well this is not the case wel talk about, it is the old big site who eat the small ones, we talk of new one who eat small ones for a new big site... but well, there's not many small cam sites who are so active despite small, and for example I would not sell or merge my site with others (as mine site goes well, why I should share?), same could be for others, so the choice of merge & acquisition may be small - and probably best ones was already purchased by i.e. streamray, mfc etc. Said so, there's no one (that I know of) putting 1+ million in a new cam site in past 2 years - I know of some $100k people (who did not succeeded imho), so it could be if someone actually put such money and buy also 1 or 2 small cam sites to consolidate, it could kick ass, or alternatively will burn 1+ million making good biz for advertising sellers and a few models for a while. |
Wow some great Cam advice and really good business advice regarding partnerships. I learned that stuff the hard way 15 years ago. Partners with equal say or input suck!! Silent money partners with zero say or your own money are the only ways to go.:2 cents:
Good luck Adam, I know things will work out for you.:thumbsup |
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