The Biggest Mistake

It’s been eleven years now that I’ve been working in this unique industry and I have seen so many changes, so many companies come and go and so many people rise up from nothing… In some instances I got to be a part of the story and that’s been great!

So here we are in 2007 and plenty of people are still making a run at the riches, building new affiliate programs and looking to build on the successful examples of the past. But what from the past applies and what has changed in the game so that you can’t lean on stories from the past? The answer to this question leads to the single biggest mistake I see start-ups making and that is:

“Build it and they will come..” This is not Wayne’s World or Field of Porn Dreams and this is not 1999 anymore! It is disturbing how many start-ups work out the funding for content, hosting and design and then have little or nothing left for advertising. In what industry on this planet is advertising not the single biggest expense going into it? I think too many people are still working off old stories from when this was all new and people built successful programs just by being out there. Maybe they hear about more recent ones who had little $$ and made it but what you always find with those is that they had already spent the sweat equity time on knowing how to direct traffic. So either you’re investing $$ on traffic or you are investing time in learning how to drive your own traffic before ever starting new paysites. Either way it has to be the most significant investment in your project or you are going to be caught just making lunch money with your program.

So that beckons the next question… how much to allocate for advertising? The best answer is: as much as possible! But of course, most start-ups are balancing limited funds and they have to find a way to squeeze the most out of every dollar.

Next month we’ll take a look at different advertising strategies/campaigns and what kind of returns to expect from them from hiring a gallery submitter, buying third party traffic to focusing your expenditures on marketing to affiliates.

Average Numbers

Of all my posts this one I imagine will raise the most argument especially with the proliferation of false information in efforts to advance specific agendas. I’m certainly not saying that anyone disagreeing with the numbers below fits into that category because there are always exceptions too, but I can say in all confidence that these averages presented are what you can expect in a vast majority of cases. One nice advantage of doing design for many clients in many genres is that I get to have a good look at a cross section of numbers and a wide variety of scenarios instead of just seeing one narrow view of the industry based on a specific experience. So anyway, without further babble, here it is:

Conversions (Full Price joins): Anything from 1:500 to 1:1000 is acceptable. With smaller amounts of traffic and more targeted sources (i.e. search engines, a site specific blog, etc…) you can see better numbers and if you have mostly low grade traffic (i.e. tgp/mgp, forced exits, etc…) your numbers will be worse. Sometimes there is confusion on this front because people publish numbers based on hits to the second page or join page. You get people with a really specific niche that has only very targeted traffic and their numbers are great at that point and well, you see how it goes. But rest assured once you get a decent mix of traffic and are seeing some volume of it (like more than 5k per day) then the numbers I stated above are a reasonable expectation.

Conversions (Trial Price joins): All the same commentary from above applies but with low price trials you can expect your conversions to be more in the area of 1:300 to 1:600.

If your numbers fall outside these ranges then you should look at reworking you tours, video samples or the quality of the content you are presenting. Of course take a look at your traffic sources too.

Conversion From Trial to Full: This number is largely dependent on four factors:

  1. How often you update .
  2. How much content is available (also if there are many sites offered when fully joining).
  3. The quality of your content.
  4. Is the trial membership a limited kind.

If you are doing everything right and offering a limited trial member area you can see your trials convert at 50% or maybe even a bit better. If you are just offering limited time access to the entire members area hen 25% to 30% is a good number. As a start up though it’s not unusual to see numbers for trials as low as 15%.  It takes enough content happening to really make trials work.

Retention: This number can vary so widely because it has a great deal to do with the frequency of your updates, the amount of content and the layout of your members area.  Do you offer multi site access?  o you offer rewards for staying longer?  For a startup with a smaller members are and maybe one a week updates, 20% is a reasonable number.  For a well built network of sites employing good techniques to keep people around (like multiple web cam shows per week for solo girls), then you can hit as high as 55%.  When I speak in percentages I am basically saying that you calculate in this way:

  • Look at your total rebills say for March.  Let’s say it’s 200.
  • Look at your rebills plus total full monthly sign ups for February.  Let’s say that adds up to 400.
  • Your retention would be 50%.

Figuring out the average stay per member is not the most telling fact because it’s often made up of polar opposites (members staying a year at a time and members quitting the day they joined).  Using the percentage method you get a truer tell of your member area value.  One important point is looking at what point your site can’t grow without more traffic.  If, for instance, you have 600 members rebilling and your retention is 50% then you are losing 300 members per month.  If your conversions are 1:1000 on 10,000 visits per day, then you are stuck because you are getting 10 members per day (or 300 new per month).  Your solutions are more traffic, better conversions, better retention or more sites (which is really more traffic).

Using the ranges of numbers I gave above, hopefully you’ll be better able to decide which area is going ot be the easiest to improve upon and which area you are getting close to maxing out on already.

Anyway, I’m sure there will be plenty of people with examples of different numbers but again, these ranges come from a look at a very wide cross section in the industry instead of just specific and narrow examples.  I hope you find the information useful as always.  Many riches to everyone!

A Great Resource

This month has been a real positive one with the tradeshow and the growing success with my partners at sterlingcash.com and digitalangeldollars.com (plug plug!) so I haven’t had a ton of time to write. But I did come across something that I think every webmaster should be checking out. This falls strongly under the “knowledge is power” category. The good folks at www.thebestporn.com have a site for the viewers to do reviews on and they conduct these polls that are just about the most telling thing I have seen in a long time.

Have a look at http://www.pornusers.com/browse_polls.html. They have asked great questions here like “What’s the most irritating thing to you inside a site’s member area?” and “How much do you trust a site’s tour pages?” I strongly recommend everyone who is serious about running pay sites have a look at these polls and the results… And the big lesson here is to not let your ego get in the way of interpreting the answers! So many of us have a hard time letting go of our own notion of how things should work or feel the need to educate an ill-informed surfer but ultimately the best sales are going to come from catering to the perceptions (and misperceptions) of the surfers at large. So again, take these polls and glean the knowledge from them. It’s golden nuggets for sure!

Exclusive or Non-Exclusive?

For the last few years this has been one of the most commonly debated topics I hear from experienced webmasters and people just looking to start.  What it comes down to is that people are making money both ways and each can give valid arguments as to why one way or the other works.  So the short answer is that you can succeed with exclusive or non-exclusive content but the long answer is about how you do it with each and why.

Exclusive Content:

  • The major argument for having exclusive content sites is the obvious… Your site is the only one with that content to offer (and possibly only one with that model or those models on it).
  • The major fallacy here is that this will make much of a difference to  most of your surfers!  This fallacy arises from mistaken beliefs held by many people putting together sites (or affiliates) who think that no one will sign up to a site that is using vids and models who have been seen in other places.  These guys spend so much time online working TGP/MGP posts and whatever else, that they have seen everything and they lose perspective on what the vast majority of the surfers are like.  Let’s face it, if you are doing porn for a living, you are way more into it than 99% of the population!
  • But that fallacy aside… PERCEPTION IS STILL KEY!  So, as a person starting your own sites and wondering if you need exclusive content, keep in mind that the big plus here is in how you can market it to AFFILIATES, not so much to surfers.  Your affiliates like to have content that isn’t on a lot of TGP/MGP sites and TGP/MGSs want fresh stuff to list so from the promotions perspective, exclusive content will be an easier sell.
  • The downside is it’s a lot more expensive.  Plain and simple.

Non-Exclusive Content:

  • Contrary to popular webmaster belief, a lot of money can be made on non-exclusive content sites.  The difference here is that it becomes more about the overall quality of the site and packaging of the content.  Look at the successful path taken by a program like Twisty’s if you question this wisdom.
  • To succeed with non-exclusive content you have to have more content and really focus on the extra things that make a site worth the $$ to join.  Lots of cool extras, great organization of content and slick presentation.
  • To get affiliates to market it, you have to go out of your way to provide better looking galleries and more intelligently made ad tool designs.
  • This content is, of course going to be cheaper so that’s your big plus.  The minus is you have to be more diligent in how you prepare it and more diligent in getting affiliates to see the value of your program.

So that’s it in a nutshell.  Nothing overly complex and honestly, it’s not that complex an argument as people are often making it out to be.  If you’re just looking to start a program, in my view it’s about your budget and your strengths.  If you are great at building sites that people will love and really care about your product, you can do non-exclusive well.  If you more interested in a frontal assault approach and just want to get the content out there and start getting people promoting fast, then exclusive - if you can afford it - is the way to go.  Many programs will end up with some of both and that’s fine too.

The Join Page

It’s the last thing your potential is likely to look at before making the crucial decision and it’s often completely overlooked by many sites. Really conscientious program owners often look to make sure it looks real good instead of just the usual bland page with some price links or those ugly form buttons, but even then I’m still seeing the primary points missed a lot of the time.

When building your join page, you have a couple final objectives:

  1. Summarize the high points of the site to drive the point home. Avoid being overly wordy here. This should be sound bytes on a short list.
  2. Overcome the primary barriers to entry for many would-be members. They are:
    1. Afraid of hidden charges.
    2. Afraid billing will continue after trying to quit or quitting will be difficult.
    3. Porn site name will show up on credit card statement.
    4. Private info will be shared or sold to a list.
    5. Transaction is secure (card # getting stolen).
  3. Give them that last bonerific push.

So, you put together a good design that matches your tour and now you should really add in a spot for a text list saying something by way of an example like:

  • 100% Exclusive HD Videos!
  • 2 Updates Per Week!
  • Live Cams!
  • All Billing is Discreet (Your statement will say “CC Bill”
  • Absolutely NO HIDDEN CHARGES!
  • We NEVER SHARE YOUR INFO WITH ANYONE!
  • Cancel Any Time No Questions Asked!

Pretty simple stuff but very effective and oft overlooked.

Cheat the Cheaters!!!

Let’s start off the new year right… By turning cheating, content stealing, scamming bastards into one of your best sources of traffic! We all hate it when our content gets out onto file sharing services, posted on leeching free sites and posted in message forums and blogs. It’s not the best part of your day when you discover that one of your member site passwords is posted on some pirate site, getting viewed by 25,000 people every 15 minutes (thankfully most of us have security protection for such problems!). But one thing we all like is getting “internal traffic!” If you run an affiliate program, you love your affiliates… they are your lifeblood, but you also love getting your own traffic because it’s sales at a much higher profit. One great way to get this internal traffic is by cheating the cheaters and for the cost of one not-so-expensive hourly employee you can go a long way. Let’s look at how:

  • Message Boards / User Groups: One way people will put your content out there without permission is on message boards like The Free Ones or in user groups dedicated to particular interests. Plenty of people are still under the assumption that stuff on the Internet is somehow public domain (or they just don’t care). The best way to utilize this source of traffic is to pick what content you want out there in these places and get it on there yourself. Get a list of these types of message boards and groups together and go through, building a fan base for your content. It’s the same game you play by putting samples on TGPs, but you are working in places that aren’t trying to be legit. If you are the one posting your content, not only will others do so much less frequently (because everyone is looking to post something new), you will control which of the content gets shared. The other thing that happens is that other cheaters who know of some groups and boards that you don’t know of will copy the stuff you posted and go to those other places with it. It’s a traffic snowball. Just make sure the stuff is watermarked with your domain in a way that would be a pain in the ass to crop out. If you are shooting your own video, you might even want to make sure the domain is mentioned in the video clip. Also, make sure you use some fake username so they don’t know it’s just the webmaster of the site!
  • Leech Sites: Places like Spankwire have tons of stolen content posted. The rules for Message Boards / User Groups all apply here.
  • File Trading / P2P: Software like Limewire and bit torrent programs are a place where tons of stolen content passes hands. The best way to combat this is to flood these services with the samples you want out there. In the case of videos, it’s a good idea to take something that is your trailer clip and just run it in a back to back loop of 15 or 20 minutes. The reason for this is any smart P2P downloader knows not to download the 4mb videos because they are just BS samples. He wants the 150mb file that is the full movie. Give him just that with the same 4mb back to back 30 or 40 times. =]
  • Password Sites: Most paysite owners use some software to protect passwords from being abused (Sparta, Pennywize, Strongbox, etc.) but nothing is to say you can’t set up some “pirate” alias, go to a password site and post a password to a fake members area that you set up specifically to serve as an extended sales tool to your site. Limited member areas, small member areas with lots of upsell content or links to other traffic “traps” all work well.

Obviously none of this traffic is going to be made up of the most likely to buy customers, but the ones that don’t convert into sales can be used to pump up your own TGO which you then use for higher grade traffic on trades or whatever means you have to utilize that traffic in exchange for traffic more suited to purchasing. Either way, traffic is still king and it’s never bad to have more than you know what to do with!

Next month we will examine the age old question: Exclusive or Non-exclusive Content?

Trial or No Trial?

Maybe you are starting a new paysite or maybe you have been around awhile and can’t decide on whether or not to go for it with trial memberships. The very basic wisdom is that you make more money with a trial only if your conversion rate increases by more than the loss of members to lack of trial conversions. For example if you lose 75% of your trial members then a 1:1000 conversion without trials would have to jump to about 1:250 to be worth it (depending on price points too).

However a bunch of different factors come into play and it can be a bitch to figure out what is going to pay off best in the long haul. Well, what I’ll try to do here is give you the end result of plugging a couple scenarios into a very detailed spreadsheet all my consulting clients use. The basic gist of it will apply and I can extrapolate out over three years with it so we should get a good picture here.

Your decision is going to primarily be the result of the following: How much traffic you are getting, what your conversion ratios are, what your month to month retention ratios are, what percent of trials convert to full memberships, what your prices are set at, what your payouts are set it. We don’t have a ton of space here so I have to do just a couple comparisons based on very level factors.

One presumption is that you will experience about 15% growth per month (this is a safe avg to bet on for the first few years). I also assume you pay your CC processor 15% + 5% chargeback reserve. I haven’t factored in hosting or content costs and I wish I could go through a bunch more factors with you but hopefully this gives you a solid idea. You can always contact me if you want to discuss this further.

In Scenario 1 we see a smaller program with 5,000 visitors per day (growing 15% per month from there). They don’t have enough content or sites in a group yet to get trials to convert real well (or monthly retention up for that matter). They do about 1:1000 getting a lot of gallery traffic with no trial and using a trial they make an avg. increase of conversion when using a trial to about double or 1:500.

In Scenario 2 we have a larger program where they have enough content to retain and convert trials much better. The daily traffic is higher and by paying PPS even on trials, they get a big jump in traffic. They are also doing the free trial so sales conversions jump a lot and with the limited members area, they get a real good trial conversion.

Take a look at the numbers… they tell the story. Ultimately you need to run tests and plug in your own numbers based on results but this should give you a general picture in your mind of what to expect.

Now these are just a couple very widely varied examples. You can see though that trials are less likely to benefit you until you have a large enough program to get those retention and trial conversion numbers real high. It’s a very tricky thing considering you can take that last scenario and bump the trial payout to $25 and then you take a $2 million loss in three years!

Again, there are other things to consider like how much your traffic increases by offering a trial. Diffrent lengths for the trial and price points as well. If you are considering trying one option or the other and want me to run some numbers for you, feel free to contact me and I’ll do that for you.

Use Your Stats!

Think back to the days when you were still a surfer and looking at porn sites. Maybe you joined a couple in your day before you got the notion to make your own. If you’re like I was (and like 90% or more of your clients), you surf right about when you’re looking for a little me relief time. =] So what drove you to join? What drives the majority of the market to whip out a credit card? Well basically, something finally makes the person horny enough without finishing the job that they just HAVE to rub one out to it NOW! [This assuming they haven’t gotten off on all the free shit out there - but that’s another discussion… people still join sites.]

So how do you decide what is going to make them hit that point? You have your personal taste to go on when choosing which sample videos to put up and which pictures to use as caps and in the graphics. This can work to an extent, especially if your site is something you are a fan of yourself. But it only goes so far (and almost nowhere when the site isn’t within your tastes).

You wanna see a marked jump in your conversions? Than monitor stats… especially those from your members area. Check out which galleries get hit hardest… which thumbnail a gallery gets clicked on the most. What is the most downloaded video? Your surfers are seeing something that makes them wanna whip it out that moment and to take that knowledge out to the tour is a huge bonus.

Thumbs that get a lot of traffic are great as thumbs filling up extra sample areas on the tour… these are the pics guys are dying to see larger.

Most downloaded videos are the ones you offer the teaser of.

Most popular models are the ones you put into the graphics of the site.

None of this is rocket science but I am amazed at how few people take the time to look at the stats and get that info. A day’s work every couple of months can be a 10% or greater increase in conversion. Heck I’ve seen it double conversions on sites where the owner isn’t into the particular niche him/herself.

If you don’t have real good server stats you can always go with a free counter like www.statcounter.com.

Hope that all is helpful for ya’ll. Happy porning!

Best Video Formats

Billing Options

A common question with new clients: “What do you think I should charge?” Most people go with whatever price point they see on similar sites to theirs. I’ve found that it’s very important to try several and compare the numbers though. It’s not just about how it effects conversion too… you have to look at retention numbers for members at various price points and also how it effects your webmaster base (you charge more, they get paid more on revshare or you can afford to pay more on PPS).

So if you’re starting a new site or looking to eek all the profits you can out of an old one, consider setting up three or four options and running them for a couple weeks each so you can compare results. Do something like:

$2.95 3 day - Recur $29.95 30 day
$4.95 4 day - Recur $34.95 30 day
No trial - $24.95 30 day
No trial - $34.95 30 day

Then setup a spreadsheet to monitor conversions, trial conversions to full and retention month to month and compare the results of each to see where your best bottom line is. The only thing that you won’t get a feel for directly is how your webmasters are responding (they drop your link or add you based on what it works out to in their payout). Don’t assume the webmaster will automatically stick with the most profitable option because alot of guys work off perception rather than reality. That’s why a program like NATS is so good because you can setup individual billing options per webmaster and allow them to select one. I’d rather have my webmasters keep sending traffick to a less profitable option than get nothing from them!

Anyway… no rocket science there but it’s something worth taking a look at if you have’t already. Best of luck to everyone in your ventures!