Is the paysite business model dying?

[Evil Chris]

The paysite model. ie. tour page(s), join page(s), member's area.

The traditional paysite model. Is it dying out? Many people in the online business seem to think it is, while others don't. In the past year, I've seen a lot of people give up on this model. Mainly because they aren't making anywhere near the same money with it as they used to make. However, I ask myself if it's the model itself, or mitigating factors surrounding the online business in general.

Obviously the proliferation of free content (in any form) has hurt online transactions in adult at every level. But I still think the paysite model is fine if the consumer has a sense of trust with the site they are considering joining. The bad processing and shady cross-checks have made many people rich (and gotten several into hot water), but hopefully these kinds of practices will gradually decline in light of the recent news about ICC-Cal. (http://business.avn.com/articles/36917.html)

Something new will show up on our collective virtual doorsteps in due time. What it is, we're not sure yet but regardless of what it is, will the traditional paysite business model survive?

[Magnus3x]

I think the generic porn site model is hurting and if you are just jumping in and plan on the basic, pics, movies, feeds upsells, with no traffic built up, I think you are in for a world of hurt.
Brazzers didn't start at the best of times and look how far they have come in such a short period of time. They spent a ton on the best content, very well shot, if you haven't seen their members area yet, it's well worth checking out. It's not the same old, left menu members area with the usual 6 items, it's stacked!!

Those who adapt and want to progress will always make bank in this business, those that want to sit around and BLAME STORM about what's killing the old model will get accomplish just that.

[flip.green]

Paysites are alive and well as a busineess moodel although theres about a billion of them so some are goin to have to fail. We are having a shake out right now in the industry, signs of it are everywhere so and so is not paying, this and that program is going out of business etc etc.

The formula is still the same for success with paysites i my opinion. Create a good portion of your traffic in house, develop quality content, and concentrate on niches you understand. Plus theres other no brainers like dont commit acts of fraud against your custemers but thats another topic all together.

[Cyndalie]

I don't think so. I think paysites needs to become more mobile friendly and if anything, billing models updated.

[Evil Chris]

I'm pretty much in agreement with Magnus here. Innovation is certainly key.
As for mobile, I'm not sure where I stand. I'd agree that it's a positive thing to offer especially now when it's fairly hot, but I don't see it as a mainstay in the long run. I might be wrong, but the smart-phone/mobile market is moving so fast right now that it's difficult to see what's ahead in that area where it relates to online adult.

[dyonisus]

I think the need for porn on a user's computer is huge, and has potential to continue to grow and earn revenue for people who have or can attract the traffic. Mobile content IMHO should be considered an up sell item or bonus. It is not realistic to accept that it can provide more then 30% of a companies business.

I also believe affiliate marketing is still and will remain a viable business model. EC and Magnux have it right though, adaptability is key to maintaining solid traffic conversions from adult affiliates. Current programs need to find ways to keep current members and attract new ones that will stick around.

I think the industry will see a number of affiliate programs that will go under. The strong and innovative will survive. Providing exclusive content, keeping ahead of the curve as presentation and technology user's want will also help.

There have always been ways to get free porn. Perhaps not as readily available as there is now online, but there has, and probably always will. People crave their sex, catering to the market is what keeps any business viable.

[rhetorical]

I think there will always be a market for paysites. The business will change and not everyone will be able to make paysites work. But there are still lots of customers out there and will continue to be, who want to pay once a month then not worry about it. Like having a subscription to Playboy or something.
It won't be for everyone. Perhaps paysites will become a niche which is not a bad thing.
Having said that, I am also about to launch a niche VOD site. Cover all bases I guess.