Re: Bear411.com: $70K + per month?
[QUOTE=dzinerbear;85681]Good examples, and this was exactly the point I was trying to make. It’ll be very hard for Gay Romeo or Manhunt to convince people in these markets to begin paying. And if a new service happens to launch in the meantime, it’ll be even harder because surfers will have another new free service to jump to.
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This is how Manhunt comes into a new market. They offer the service for free until they build up a big membership base then they charge for access. They constantly compete with other free services all the time. The reason that Manhunt can make it work is that they have the resources to get enough members to make it worth the money to actually pay for the service.
The problem with “new” services launching is that for the most part they don’t have the resources or a solid platform to attract enough new members to make it worth even creating a profile on the site. Most of these new free services pose no real challenge for sites like Manhunt.
I would say that the ratio of paid to free members is way better for the bigger sites than the smaller sites.