What it comes down to is this IMO.
-Don't rely on the AVS for traffic or SE help. If you want to make money you still have to work for that yourself. You will get some traffic from the AVS, but if you rely on that as your sole source you will go broke.
-Always sell the AVS service first, sponsors second, especially in the case of premium sites that give you recurring income. With premium I don't try to sell anything but the service on the public pages. Save the ads for the inside pages where you have cc carrying surfers who have paid for porn in the past.
- It's tough to make money with premium AVS's using watermarked sponsor content. That's pretty much the way it is.
- You can still make money with watermarked sponsor content on basic AVS sites or "free" AVS sites like Sexkey or FreeNetPass, just don't expect a lot of hits from the AVS.
-If you can build premium AVS sites they retain members far better than any paysite because they give surfers a shitload more than any paysite. Recurring income is very nice to have!!
-It's faster and easier to build a basic AVS site than it is to build a free site and you can advertise almost as much on them as on free sites. And what you advertise on the inside is only being seen by surfers with credit cards who have paid for porn in the past.
AVS's are just part of a business model, not all of it, I do well with them.
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