Quote:
Originally Posted by grumpy
Wrong conclusion. If you give it away for free they are not gonna pay. Period.
|
Too simple an answer.
Tell Nescafe that the girls in supermarkets giving away a tiny cup of coffee are killing their sales and they will enjoy the joke.
Sponsors competing with each other to get affiliates and using free content as the tool to get traffic were the biggest problem.
If it had stopped at in house traffic generation, giving away 10 images to get surfers to the tour. Things would of been fine.
Once it was sponsors giving affiliates as much as possible, paying them as much as possible, giving them all the support possible, spending money on marketing to affiliates, creating content to suit affiliates needs and creating the sites to fit their needs (with programs like NATS) there was so little to spend on the product. The product and customer became less important.
Add scamming in general, to pay affiliates inflated payouts and you have the perfect storm.
Spending no more then 10% to 15% on marketing leaves a company far more to spend on the customer. And when Tubes became a reality. They would never of survived. Because there were no sponsors to host, give away content or pay for them. Pornhub can go 100% legit, because the money spent on "traffic" allows Tubes to pay their bills.
At $30 a month a site can afford all the traffic generation it does today. Bring the price down to $20 and that model can't. What is the $10 spent on? Affiliates to give away free content.
Play with the figures, the principal is still right.
This isn't the thought of affiliates, sponsors are to blame. And yes it would of meant many who now work in online porn wouldn't of been able to. They won't be able to for much longer or already gone. Business is tough.