CASE STUDY: “The Holy Grail – Getting People to pay for Porn”

http://blog.vendoservices.com/vendo-blog/2018/01/13/case-study-the-holy-grail-getting-people-to-pay-for-porn

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(This is a business case study. It will be used to guide discussions during the session: “The Holy Grail – Getting People to pay for Porn” with co-host Fred at the Paysite Meetup.)

Fred looked at his numbers. They were ok. He immediately felt relieved. His stomach calmed down. His numbers were ok. People were paying him.

“That was an accomplishment,” he thought. In his newly relaxed state he reflected on the big question: “How do I get people to pay me?” His mind wandered back fourteen years to his start in the industry. “How did I get people to pay me over the years?” he reflected.

If they see enough value, they will buy. If they do not see enough value, they won’t. The value can be expressed in an equation comprised of three fundamental items:

  1. the content (both in quality and quantity);
  2. the technology to support the product;
  3. the traffic and distribution of it.

1995-2002: World Wild Web Since both content and tech was difficult the relative value for the content during that period was trending upward. The relative value of the technology was very high. Quick adoption of the internet meant traffic was cheap and plentiful. The relative value of the traffic was low.

2002-2008: A new world order During this phase, tools to produce content became easier and cheaper to use, opening the door to more and more producers. The relative value of content maintained at a high level. Technology was still a challenge. The relative value of technology remained at a good level. People came up with new and innovative ways to monetize traffic. We saw a continuous increase of the relative value of the traffic.

2008-2015: Paradigm Shift The relative value of content got lower and lower, reaching the bottom of the barrel. The technology was quite standardized and easily available. The relative value of the technology was trending down. We saw a continuous increase of the relative value of the traffic as the high-value resource.

How do I make my numbers go up, Fred asked himself? Where should I invest? Content, Technology or Traffic?

Questions for discussion:

  1. To get people to pay us, what is the relative importance of content in 2018 and going forward?
  2. Of technology?
  3. Of traffic?

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