Best Long-Term Business Strategy?

[rawTOP]

What do you think is the best long-term business strategy in terms of stability and profit? Producing content, owning a paysite, or being an affiliate? Or some combination? It seems producers have to battle piracy, and affiliates could have laws change on them and make their business difficult, and paysites have more and more competition...

[dzinerbear]

I'm a big fan of not putting all your eggs in one basket.

When I started in this business, I worked one AVS hub exclusively for one AVS. And I built up a nice revenue stream — very nice. But the problem is that when all your money is coming from one place, you can start feeling trapped.

I used to have a lot of sponsor banners on my AVS tour and made a lot of good money because my SEO was bringing in tons of traffic. So I was selling heaps of memberships for the AVS and lots of memberships for secondary sponsors. But then the AVS changed their policy about sponsor banners on the tour pages and I lost a huge chunk of money. I didn't make it up by selling more AVS memberships like the AVS thought would happen.

So ever since then, I've been diversifying as much as possible. I think affiliate marketing is a great way to bring in money and create a solid revenue stream, but if you can take that money and start doing something else with it, I think you'll be better in the long run.

I'm not sure that I would produce content unless it was for myself. Producing it to sell to other people, I just don't think you're going to make a lot of money. Site owners are a cheap bunch and generally don't like to spend much on content. You'll find the odd site who puts a lot of money into content, but those kinds of sites are probably producing their own. And when you track the amount of time that you're spending looking for an interviewing models, waiting for models to show up — or not — and then shooting and editing the content, I don't think you'll be making a fair dollar.

Even in the writing world, it's not uncommon to get writing gigs making 50 cents to $1.00 a word or more, but in the porn world most review sites pay between $25 and $50 a review, which is around 5 cents or less a word.

I think that whatever you're creating you should be creating for yourself. Creating to sell won't get you very rich in this business.

Michael

[fetishlad]

I agree with Michael,

Since the credit crunch I had to re-think my business model. Not only do people buy less porn online, also there are the file sharing sites and the tube sites that take away a lot of business.

So now I branched out and am beta testing my own social network for fetish men (think a dirty facebook combined with x-tube and webcam chat sites)

Also I started up a weekly club night in London for gay men into fetishes.

It keeps me busy and buys me nice things like food and drink.

Hendrik

[Michael B]

My own two cents here seems to fall in the same lines as Michael and Hendrick and that is Diversify. But I will add this point and that is do not be afraid of taking a risk or a challenge with the technological changes that are out there. There are ways of taking those risks without hurting what you already have in play. That's just my two cents
Michael B

[rawTOP]

I think that whatever you're creating you should be creating for yourself. Creating to sell won't get you very rich in this business.

That much I'm definitely a firm believer in. I told you how I already turned down working with someone... I'd rather do something small that's all mine...

[HunkMoneyLuke]

where's the tick box for "making money, retiring early", thats my long term strategy :D

[Adam Mason]

By being an affiliate you don't ever put all your eggs in one basket... you spread your traffic (and risk) across a number of different sponsors. Or that's the theory... and Bjorn seems to be doing pretty well at it ;)

100 reviews at $50 a review = $5,000 - a solo and a duo update on a paysite each week can easily cost $3,500 - the math is simple! Paysites have HUGE overheads (we've not even got into design, bandwith for films downloads etc...) so, if you know traffic I would suggest you go the affiliate route.

[Squirt]

a solo and a duo update on a paysite each week can easily cost $3,500

you are paying to much ;)

[Adam Mason]

LOL - that's 2 camera men per shoot + cameras and lights + location fees + editing time + editing machines + models ++++ all the other incidentals that get rolled up in the cost of shooting and releasing a film. I'm being conservative...

[basschick]

of course, a site's like bjorn's has far more than 100 reviews, has to have sites re-reviewed regularly, have blogs written, custom programming, etc. i know paysites that pay less to run their sites than a few of the largest link list owners pay to run theirs. and let's not forget checking trades and checking out hundreds of sites that submit to the directory - lots of work there!

and btw, adam - i know some successful paysite owners who pay $25 per update. everyone handles things differently.

personally i also like the idea of diversity.


By being an affiliate you don't ever put all your eggs in one basket... you spread your traffic (and risk) across a number of different sponsors. Or that's the theory... and Bjorn seems to be doing pretty well at it ;)

100 reviews at $50 a review = $5,000 - a solo and a duo update on a paysite each week can easily cost $3,500 - the math is simple! Paysites have HUGE overheads (we've not even got into design, bandwith for films downloads etc...) so, if you know traffic I would suggest you go the affiliate route.

[AlexManifestMan]

Diversity isn't all that it is cracked up to be. "Jack of all trades, master of none" ring any bells?

[AnthonyDeAngelo]

well there's no question that we've made our money owning the rights to everything we produce... and, we can then chop it up and dish it out for feeds, ppv, vod, and license to foreign countries (and there are a lot of those around the world), put stuff on cable networks and in hotel rooms... etc, etc... and of course, re-release stuff for ever and ever... compilations and so on

we're now in second, third and in some cases, fourth editions of some of our original titles that were originally released 10 years ago

not too shabby for a couple of bareback porn stars... and its our tenth year in porn too, so we've got some kind of spell on folks out there - maybe its because we are the ONLY gay couple in the business who produce, direct and star in most all of our content - and that's a fact! so maybe authenticity is important too... real men behind the content -

[MrMax]

I agree with AnthonyDeAngelo. I film my own stuff and stamp my site name on *everything* and just let it float out there.
My videos are very amateurish and look cheaply done, like they were filmed behind a dumpster lol. But its still my content and they bring in signups. And any traffic all comes back to me without having to split it with anyone.
Why put money in someone elses pocket?

Im starting to dabble in some mainstream stuff and I will be owning everything I do, not selling other peoples products.

Since youre asking about Long Term strategies, I look at my websites as my 401k plan. They may take years before they generate good money, but thats fine. As long as they get there eventually, and its hard to do that as an affiliate in my opinion.

[Adam Mason]

Of course Bjorn and other big players have significant overheads, but I don't think the risk is comparible to setting up a paysite which provides 2 exclusive updates a week. In total my expenditure each week is around £5,500 (before paying myself!) and that's a big commitment.

As for paysite owners who can update there site with content for just $25 - please PM me an example as I'm clearly doing it all very, very wrong lol


of course, a site's like bjorn's has far more than 100 reviews, has to have sites re-reviewed regularly, have blogs written, custom programming, etc. i know paysites that pay less to run their sites than a few of the largest link list owners pay to run theirs. and let's not forget checking trades and checking out hundreds of sites that submit to the directory - lots of work there!

and btw, adam - i know some successful paysite owners who pay $25 per update. everyone handles things differently.

personally i also like the idea of diversity.

[dzinerbear]

As for paysite owners who can update there site with content for just $25 - please PM me an example as I'm clearly doing it all very, very wrong lol

Here, here to that ... I'd like to be on that list as well. That's certainly not exclusive, and any site updating with stock videos from Ounique or Max Pixels would be skewered by the review sites, and no doubt wouldn't attract a lot of members.

Michael

[Squirt]

Is this where we start posting model pics with the amount they were paid pasted below each image :happy:


Of course Bjorn and other big players have significant overheads, but I don't think the risk is comparible to setting up a paysite which provides 2 exclusive updates a week. In total my expenditure each week is around £5,500 (before paying myself!) and that's a big commitment.

As for paysite owners who can update there site with content for just $25 - please PM me an example as I'm clearly doing it all very, very wrong lol

[AnthonyDeAngelo]

Of course Bjorn and other big players have significant overheads, but I don't think the risk is comparible to setting up a paysite which provides 2 exclusive updates a week. In total my expenditure each week is around £5,500 (before paying myself!) and that's a big commitment.

As for paysite owners who can update there site with content for just $25 - please PM me an example as I'm clearly doing it all very, very wrong lol

wow... someone else out there is also updating for $25 a week?

good for you!

I've given valuable consultation to many on "formula" - even helped whats-his-name oh... Chris Roma when he was having trouble getting Pantheon off the ground - he listened to me for an hour on the phone (twice) and followed my method - bango, a good and strong business - only thing though, he never thanked me so...

I've helped many people - seriously Adam, call me and I'll give you some private tips - but don't forget to thank me!

[basschick]

there ya go - a site making money on updates that are approx $25 a piece
www.hotmomnextdoor.com (http://www.hotmomnextdoor.com)

i actually know of dozens of them.

[dzinerbear]

i actually know of dozens of them.

Any gay sites?

Michael

[Adam Mason]

But they say "100% exclusive content" so is everyone involved working for free?

[AlexManifestMan]

If a site can call a brown sweater dress a maids uniform, they can do anything.

[Adam Mason]

Well, to be fair, even though all my content is made by me for my site I can't really say it's exclusive given the number of torrent / rip-off sites that post my films too :grrr:

[AnthonyDeAngelo]

nobody ever listens to me anymore... but then, I'm not the one to disclose company secrets that often

people missed a very rare opportunity when we invited everyone up to our compound in Mendocino...

that's not happening again anytime soon... but then, nobody EVER came by our home in Beverly Hills either - maybe a few to our office on Maple Drive - but we never had any takers to our home...

we're really not THAT bad are we?

I mean, how successful to we have to be before people actually listen to what we have to say?

I know, there I go again, just another stupid porn star turned producer...

How afraid of us are you really?

[Adam Mason]

nobody ever listens to me anymore... but then, I'm not the one to disclose company secrets that often

people missed a very rare opportunity when we invited everyone up to our compound in Mendocino...

that's not happening again anytime soon... but then, nobody EVER came by our home in Beverly Hills either - maybe a few to our office on Maple Drive - but we never had any takers to our home...

we're really not THAT bad are we?

I mean, how successful to we have to be before people actually listen to what we have to say?

I know, there I go again, just another stupid porn star turned producer...

How afraid of us are you really?

Hey, PM me with your Skype addy and I'll be in touch! And yes, I would have paid you a visit but if you recall, I had boat duties to attend to ;)

[rawTOP]

but if you recall, I had boat duties to attend to ;)

Sail or power? (I LOVE sailing... Haven't had a boat in a few years and really miss it...)

[gaybucks_chip]

nobody ever listens to me anymore... but then, I'm not the one to disclose company secrets that often

people missed a very rare opportunity when we invited everyone up to our compound in Mendocino...

I can't speak for anyone else, but AJ and I actually really wanted to make the trek, either there or to the property in central california. Unfortunately, neither of us have had time to leave even for a weekend in the past few months... just too much going on and working on too many things! We hope that things will ease up soon and we'll have time to attend shows and visit with other industry people at other events too. :)

[abostonboy]

Diversity isn't all that it is cracked up to be. "Jack of all trades, master of none" ring any bells?

I tend to agree with this one.

To answer the main question, the most money to be made is in the paysite business.

[Mickey]

nobody ever listens to me anymore... but then, I'm not the one to disclose company secrets that often

people missed a very rare opportunity when we invited everyone up to our compound in Mendocino...

that's not happening again anytime soon... but then, nobody EVER came by our home in Beverly Hills either - maybe a few to our office on Maple Drive - but we never had any takers to our home...

we're really not THAT bad are we?

I mean, how successful to we have to be before people actually listen to what we have to say?

I know, there I go again, just another stupid porn star turned producer...

How afraid of us are you really?
would have loved to go but am across the pond so wasnt really an option for me...

[tigermom]

For me, there are other considerations than just maxing on revenue. I want to be totally independent and in control of my time. I work part time some months, or I just take breaks when I feel like it. The perfect model for me is being an affiliate - no commitments to updating paysites or handling clients, not to mention production... I value my family time too much to give it up for more money - what I make is quite enough and allows me the flexibility I need.

I do diversify, just no by starting paysites or producing content. I diversify within adult with different markets and niches, and more importantly, I do mainstream too, relying on lots more than just being an affiliate - doing lots of CPM and CPC advertising too.