Desperation

[AlexManifestMan]

The economy is making some folks really desperate. A "newsletter' was recently forwarded to me where one site is even seeking a rich sponsor to give them cash and in return they will allow the 'sponsor' to hang out on the set. Amazing.

Add that to a confession to members that they have lost half their members and a pile of lies about competitors and it is pretty clear that the downturn is costing some folks more then cash.

I have seen some other sites seeming to crack lately. What do yall see?

[Jasun]

Yeah, there are a few studios that are getting kinda desperate.

Meh... comes with the biz.

[gaybucks_chip]

I know of at least 3 or 4 twink DVD producers that apparently can't afford to release new titles.

In one case, a studio begged a distributor to pay them early so they could afford to replicate a title (for which the distributor had orders) and the distribotor paid... but the studio spent the money on other things and couldn't afford to replicate the title.

In another, the studio has been advertising new titles for months, but when you try to order, they don't exist.

I think a lot of people are seeing some downturn, but the smart businesses are retooling their business plans, making changes to increase profitability, trimming expenses, diversifying, or all of the above. I've always thought it was unwise to put all your eggs in one basket, but I guess a lot of people figure the good times will keep on rolling ;)

[gaydemon]

Its natural selection really. Bad businesses go bust, good ones survive and get stronger.

Myself, I invest during these bad times and hopefully will come out on top when its over. When I say "on top" thats a figure of speach. ;)

[dzinerbear]

I agree with Bjorn. It seems that times like these are a thinning of the herd. When times are good, almost anyone can make a go of it in this business. From the small webmaster who flounders around from one sponsor to another and doesn't have much direction to the decent-sized studio who is producing content or DVDs.

When times get tough and people are more selective with how they spend their dollars, the chaff of the business gets blown away. It's not such a bad thing really, it gets rid of a lot of hobbyists.

I also don't mind personally because it challenges me to become a better webmaster and business man. It forces me to examine stupid stuff I do that isn't making money and makes my brain start working in different and creative ways to continue making money.

It's definitely a challenging time, but most of us will come through it.

Michael

[AlexManifestMan]

As a big fan of social Darwinism, I agree.

[Gaystoryman]

Interesting theory, and maybe it does work, but I don't always think that the best survive, that in many instances it is the dishonest, the black hat operator, that eeks their way through, and a lot of good honest operations, die out, because holding to one's values, comes with a price in times like this, that simply finishes them off.

Yeah, some good smart one's survive, but not as many as one would hope.

[Ben]

Interesting theory, and maybe it does work, but I don't always think that the best survive, that in many instances it is the dishonest, the black hat operator, that eeks their way through, and a lot of good honest operations, die out, because holding to one's values, comes with a price in times like this, that simply finishes them off.

Yeah, some good smart one's survive, but not as many as one would hope.


Agreed.

Serbia (where I live) was punished by the oil embargo in 1991 because of the reasons that are too complex and I won't go into explaining them.

Then in 1992 more sanctions imposed by the UN followed: Complete ban on all exports and imports of goods, the ban on cultural exchange, even the ban for our sportists to compete under the national flag etc.

Many many politicians - and even some seemingly serious people - claimed that the sanctions presented A CHALLENGE and AN OPPORTUNITY for our country to grow and develop its own economy to new heights, and to get rid of unnecessary and unproductive business models.

Then, when all economy was almost utterly destroyed, some people jokingly said that we could focus on producing toothpicks (since that was about the only thing that could be effectively produced under the circumstances). The state propagandists promptly jumped on the bandwagon and supported the idea -

"We should be thankful for the hard times because now the toothpick industry can develop its production and quality to its full potential. If there were not for the UN sanctions, the toothpick industry would have been left on its laurels and would never develop as much!"

(this is a real quote from one of our politicians.)


In the end, the only people who profited from the bad economic situation were: Oil smugglers, tobbacco smugglers, criminals close to the goverment and all other kinds of lowest scum.


The morale of the story? Bad economic environment is not conductive to normal business. And nobody should be happy because of the supposed decrease in competition.

[AlexManifestMan]

If the downturn clears out deadwood, it is a good thing. Good business practices (that have been in place prior to any slowdown) assure a solid company that it will be fine.

I will take real pleasure seeing bad sites go away. I hope the cannibalistic practices that some have used is biting them in the ass big time.

[Adam Mason]

Morals, ethics and principles come at a price. Life rarely rewards those who stick to their guns but, instead, seems to favour those who opt for the easier passage. All this downturn will see is more "dog-eat-dog" activity in every aspect of our economy... and it's the dog with the biggest bite (not necessarily the one you want to take home and live with!) that will survive.

[AlexManifestMan]

If morals, ethics and principles came with no price then everyone would have them. The fact that they are not free is exactly what makes them valuable.

[AnthonyDeAngelo]

I've always said, and still do - the one thing that has helped us is the one thing that anyone with wealth will tell you to do....

diversify, diversify, diversify...