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Making Dollars and Sense

Making Dollars and Sense

September 30, 2011
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" Everybody wants to earn more from their website, however; so fortunately, a variety of tools and services are available to aid in website income optimization. "

Adult webmasters, website operators and entrepreneurs have long been notorious for their fervent innovation — and eager adoption of the innovations of others. Automation is our friend and extends deeply into the tools and technologies that drive our wares.

From the capturing, editing and display of content, to the acquisition and management of its viewers, adult entertainment businesses love automation. In the quest for other, perhaps more labor intensive endeavors to be automated, however, the financial flow of many sites often takes second stage to other considerations.

While traffic analytics, reporting and split testing is common enough, as is the study of content preferences and the latest billing company reports, other financial aspects of a site, such as pricing and ROI are left to guesswork — sometimes due to a lack of proper tools and automation.

Everybody wants to earn more from their website, however; so fortunately, a variety of tools and services are available to aid in website income optimization — one facet of which is otherwise known as Revenue Management.

“Revenue Management is the application of disciplined analytics that predict consumer behavior at the micromarket level and optimize product availability and price to maximize revenue growth,” states Wikipedia, adding that “The primary aim of Revenue Management is selling the right product to the right customer at the right time for the right price. The essence of this discipline is in understanding customers’ perception of product value and accurately aligning product prices, placement and availability with each customer segment.”

One example of Revenue Management in online adult is the “Beer Index” espoused by Christian Kreul of Sex-GoesMobile.com at the recent XBIZ Summit in Chicago. This index provides a commonsense approach to premium porn pricing with a regional slant, tied to the local beer prices.

Such methods are only possible with a detailed understanding of the basic finances of a particular operation; and this level of knowledge may require more than a spreadsheet to develop — although the rewards for doing so may be significant.

Revenue Analytics (www.revenueanalytics.com) boasts a two-to-seven percent uptick in client revenues — and while gaining a mere two percent revenue boost may have once seemed a waste to follow for cash-stuffed operators, today’s cash-strapped reality differs. The company achieves this increase via Revenue Management and Price Optimization — fields with their own conferences (www.revenuemanagementconference.com), offering resources and opportunities to those wishing to pursue this arena further.

While the intricacies of Revenue Management may be more than some porn mongers want to deal with, the same tools and techniques that enable airlines and hotels to better schedule and profit from their inventory, can, for example, help a live cam site schedule its performers and bandwidth — incorporating dynamic pricing to boost its income.

It’s all a matter of pursuing your dollars with a little bit of sense.


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