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Originally Posted by Bill
If revenues are increasing, why aren't sponsors increasing? This is the question that I'm really thinking about.
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Increasing in the number of sponsors out there or increasing as in payouts?
I think in both cases it's profit margins. 8 years ago there was a huge demand and no one was doing it so a single site could bring in big bucks quickly using stolen content. You could also not give surfers a cancel link, no need for trials, upsell them to 5 different sites and then spam them 10 times a day. Basically for little investment you could create a site and milk each surfer for extra cash.
Today you can't do that so instead of making $100 off of the average customer they're making $40 but also instead of the surfer joining one site and getting ripped off they're now joining more sites and there are more surfers.
Eastern Europe, South America and Asia are all getting easier access to credit cards and I'm seeing them in my member's stats. $19.95 may be a lot of money for these guys but it still costs less then a hooker or even 2 drinks and a lap dance.
This business is supporting far more people then it did 8 years ago. Even if new surfers are leveling off then that just means that all the kids are on the Internet now and sooner or later they grow up and want to see some nakedness.
