Where's the money in Tube sites?

[gaydemon]

I know tube sites have been discussed a lot, but I'm trying to figure out how exactly the tube sites makes money.

From what I can see and figure out is

1. As an affiliate promoting sites through sponsor content / videos
2. Upsell to VOD sites
3. charging for membership?

The larger tube sites do they actually make money yet? I presume they must do by now, or?

[basschick]

you could link each video to the sponsor. you could have a link to the sponsor. in a way, tube sites that don't accept submissions are like HUGE ever-changing movie galleries.

[BabyMaker]

megarotic must be making money as they are now a proccessor too megapay :) i wish i had their cash :D

[gaydemon]

Havent seen their site before, it looks very good actually. Have to check it out more closely and see what they are doing.

Not that im thinking of starting a tube site. But its always good to find out how others make money and what might come next.

For a start they seem to be charging a Premium Membership fee..

[tombarr]

Some of them, of course, like xtube, are plastered with ads and sell ad impressions and maybe clicks in addition to their new SOP of promoting as affiliate webmasters certain programs they want to push with their "house" accounts.

I never understood though why they don't target their sponsors better... you can go in the gay section and see straight ads, in the straight section, gay ads, and not to mention the run of the site type delivery of general gay themed ads without targeting by niche.

Am I missing something in the psychology of ad delivery on networks like this in thinking that they would do better with having big cock sponsors in their my cock section, asian sponsors in the asian section, etc.. or does it work better for them to have run of the site ads in all categories.? Doesn't seem logical to me.

[MrJD]

tube sites DO make money. The problem is that it's /very/ close to the cost to run it. I've heard that a 'legal' tube site that's decent in size will run you 5-6k/mo in bw alone... You'd have to pull 5-6 $35PPS/day to barely break even on the bw.

Tube traffic converts like total shit too...



1:3000 I would say is outstanding for a tube site. I would take that and multiply it by 10 IMO


in short, don't start a tube site unless you enjoy massive bw bills and horrible ratios

[gaydemon]

Interesting, so Tube traffic doesnt convert very well?

I just kept reading these post about how great it was after posting this or that and how many sales they made.. So i assumed it did convert well.

However it would make more sense if it did not convert, a decent size tube site should have enough stuff to keep people busy and get off without buying anything really.


tube sites DO make money. The problem is that it's /very/ close to the cost to run it. I've heard that a 'legal' tube site that's decent in size will run you 5-6k/mo in bw alone... You'd have to pull 5-6 $35PPS/day to barely break even on the bw.

Tube traffic converts like total shit too...



in short, don't start a tube site unless you enjoy massive bw bills and horrible ratios

[basschick]

a lot of tube surfers are dedicated looky-loos - they are dedicated to not buying, and that's not just true of porn surfers. how many people here have gone to youtube and clicked on any sponsor links? i know i haven't.

also i suspect that tube sites become a habit like tgps (or news sites, for that matter) - people drop by every day to see what's new and only buy when something really catches their attention.


However it would make more sense if it did not convert, a decent size tube site should have enough stuff to keep people busy and get off without buying anything really.

[MrJD]

Interesting, so Tube traffic doesnt convert very well?

I just kept reading these post about how great it was after posting this or that and how many sales they made.. So i assumed it did convert well.

However it would make more sense if it did not convert, a decent size tube site should have enough stuff to keep people busy and get off without buying anything really.

as with any low quality traffic, it's a numbers thing... 1:3K ratios is fine if you've got 1mil/day. It's total piss traffic but... it's sales i guess... :rolleyes:

[gaybucks_chip]

Good comments here all around.

Xtube is not making a lot of money or much money at all from what I can tell. Part of their problem is I don't think they had a good business plan in the first place. Either that or they have no idea what they're doing, because their business model seems to change every 2-3 months.

The bandwidth costs are phenomenal, and the logistics of maintaining a reliable network is also pretty daunting. Take the spikiest traffic that a given membership site has and multiply it x10 or 50 or 100 or something and you get an idea of the capacity variation that a tube site would have to be able to handle. So it's a hurdle both from a logistical side and from the pure amount of bandwidth you'd have to buy.

[gaydemon]

You are probably right, that does make sense that it has more in common with TGP traffic than anything else. Probably here to stay as well as yet another alternative or way of selling your sites.


a lot of tube surfers are dedicated looky-loos - they are dedicated to not buying, and that's not just true of porn surfers. how many people here have gone to youtube and clicked on any sponsor links? i know i haven't.

also i suspect that tube sites become a habit like tgps (or news sites, for that matter) - people drop by every day to see what's new and only buy when something really catches their attention.

[abostonboy]

Tube traffic converts like total shit too...



I have to disagree that a well branded tube site like Xtube converts like shit. As a program owner (actually an affiliate rep of a program owner) we can go in the market and buy ads at a certain CPA. Our CPA is higher than what an affiliate marketing a site can pay as we own the site. There are very few ad buys that can match the CPA that I want. However, I know many webmasters that buy ads at tube sites and make a decent CPA. Sometimes the CPA is $22 on a $35 PPS for a profit of $13 and can pull 10 - 20 signups a day. Xtube always had a better gay section in terms of profitable traffic than the straight side.

On another note, those actually buying ads on Xtube are doing better now than before with less traffic.

Affiliates that market on tubes convert very well and make money as they pay no hosting fees. conversions of 1:50-1:100 are not uncommon. Add to that the surfers that type in the domain and there are sales being made. Affiliate pulls 3 sales from a video that they pay no bandwith and the program owner gets 3 type in sales as well as branding. So for affiliates and paysites it can be a money making opportunity.

There was a lot of talk about tube sites and in the panel that I spoke on it was generally believed that tube sites are good for the industry.

One thing that I love about tube sites is the delivery medium: flash. How many surfers just download 100's of tgp clips and add them to "add to play list" in WM11? You can't really do that in Flash.

I believe that the industry will move toward a flash based delivery system over the next few years and if others don't offer a flash medium, then the tube sites will be where the action is. We are already seeing the shift when we look at traffic. Traffic = money. Some tube sites will find a way to filter it and make money. Others will not. It will be interesting to see what happens.

[gaydemon]

Not sure about the "Good for the industry", if its as in Good for the BIG guys with lots of cash and resources then yes. If its good for all of us, then no. If Tube sites are going to be a big success as some say and think, then its going to hit the smaller guys worst and possibly put some people out of business - replacing it with larger tube sites / companies.

We already know that several Tube site are owned and run by larger companies like AEBN..

I would hate seeing the Porn industry just become another Media business like music where there is no room for smaller companies and individuals. What makes this (at least the gay part) a great business is that there are so many different people and lots of smaller sites / companies.

My own selfpreservation and survival instinct tells me that Tube sites are bad news.


I have to disagree that a well branded tube site like Xtube converts like shit. As a program owner (actually an affiliate rep of a program owner) we can go in the market and buy ads at a certain CPA. Our CPA is higher than what an affiliate marketing a site can pay as we own the site. There are very few ad buys that can match the CPA that I want. However, I know many webmasters that buy ads at tube sites and make a decent CPA. Sometimes the CPA is $22 on a $35 PPS for a profit of $13 and can pull 10 - 20 signups a day. Xtube always had a better gay section in terms of profitable traffic than the straight side.

On another note, those actually buying ads on Xtube are doing better now than before with less traffic.

Affiliates that market on tubes convert very well and make money as they pay no hosting fees. conversions of 1:50-1:100 are not uncommon. Add to that the surfers that type in the domain and there are sales being made. Affiliate pulls 3 sales from a video that they pay no bandwith and the program owner gets 3 type in sales as well as branding. So for affiliates and paysites it can be a money making opportunity.

There was a lot of talk about tube sites and in the panel that I spoke on it was generally believed that tube sites are good for the industry.

One thing that I love about tube sites is the delivery medium: flash. How many surfers just download 100's of tgp clips and add them to "add to play list" in WM11? You can't really do that in Flash.

I believe that the industry will move toward a flash based delivery system over the next few years and if others don't offer a flash medium, then the tube sites will be where the action is. We are already seeing the shift when we look at traffic. Traffic = money. Some tube sites will find a way to filter it and make money. Others will not. It will be interesting to see what happens.