educational

Creative Content Buying

With today's slim profit margins, website owners are under increasing pressure to lower operating costs and increase revenues. Competition has always been tight, but these days it seems almost suffocating as you try to bring the best content to your site presentations, and ultimately gain market share in your particular niche. Many operations rely heavily on nonexclusive content as a low-cost alternative to custom work, and why not? Nonexclusive materials are low cost, plentiful and relatively easy to find. Refer to any industry resource site and you'll find business directories teaming with content brokers peddling their wares.

While licensed, nonexclusive materials make for excellent filler material that affords a good return on investment (ROI), there still remains the need for good custom production that is unique enough to catch the eye of the surfer. Most experienced website owners will tell you that among other factors, good exclusive or limited circulation materials are paramount to capturing and retaining today's veteran consumers. However, in today's tough marketplace, that pursuit inevitably turns to a question of affordability. For well-established websites that have already built a loyal customer following, the expense of custom materials is something they are used to and for the most part, have already factored into their operating budgets. If you are a new guy on the block or a member of the "average Joe" class, as many of us have been at one point or another, listen up; I am going to give you some ideas to help level the playing field a bit.

Our brick and mortar counterparts in mainstream retail have developed associations collectively known as "Purchasing Cooperatives." Essentially, these are purchasing entities that combine the resources of several merchants to put them into a better pricing range by virtue of bulk purchases. These alliances allow them to better compete with retail industry giants, whom, of course, far outclass them in purchasing power. By combining funds to source their products, they reduce overhead and get better prices on resale merchandise, thereby lowering their investment liability. In the world of brick and mortar resale, inter-association competitiveness is controlled by the geographical separation of the merchants. This is why you will often find several cooperatives operating within the same region, so they are not beating themselves up with their own local competition. After all, their goal is to level the playing field with the giants of the industry, not to make it difficult on themselves.

This technique can be adapted to the adult industry to purchase limited circulation or custom materials, on at least two different levels. Not unlike our retail cousins, small private arrangements between site owners can contract studios and photographers for production that fits their needs. In the first case, four or five site owners could combine to finance a shoot with a big name model and reputable photographer for a fraction of what they could do on their own. In the case of same-niche materials, this would be known as "limited circulation" material as the contract could be crafted to allow the commercial use by only the buyers involved. In addition, proper coordination of a model's "day rates" and studio time can be used to produce a quantity of production that could either be addressed as limited circulation or even as exclusive by an agreement that further lowers your bottom line.

In the second case, models these days are fairly versatile. The combination of participating sites could consist of owners operating in different niches. Again, utilizing day rates and studio contracts, the shooting time could be sectioned off as equal time amongst the niches. This is often of excellent value to the cooperation as the resulting materials would not be directly competitive, in effect constituting an exclusive shoot for each niche. While a little more costly than the previous example, there would still be substantial savings over the costs that would apply on an individual basis.

The basis for these private cooperatives can often be found on the many industry boards that serve the adult webmaster community. While I have heard of several studios that organize split time options for custom work, I have not run across a single example of an ongoing established cooperative, which I find to be surprising given the expense of creating top-notch content today. These associations are normally private in nature and the key to developing these business ties is a simple as participation in the industry forums. I have participated in several such buys over the years and in every case, those associations were established via personal networking on the industry boards. The industry boards were established with business networking in mind and in my humble opinion, they are under-utilized in that regard. Getting involved on the boards can be an invaluable resource, and in time, you'll be surprised at the many ways these kinds of interpersonal networking can benefit even the largest of operations.

Premium custom content on a small budget can really be just a matter of creative networking. Proven methods such as what I have presented here can help keep your paysite on a level playing field with the big boys if applied in a common sense business arrangement. As with any kind of business, innovative ideas are often the difference between winners and losers. Keeping your mind open to newer concepts in doing business will help you increase your bottom line.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

'Traffic Captain' Andy Wullmer Braves the High Seas as Spirited Exec

Wullmer networked and hobnobbed, gaining expertise in everything from ecommerce to SEO and traffic, making connections and over time rising through the ranks of several companies to become CEO of the mobile business arm of TrafficPartner.

Alejandro Freixes ·
opinion

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each settled transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
opinion

The Perils of Relying on ChatGPT for Legal Advice

It surprised me how many people admitted that they had used ChatGPT or similar services either to draft legal documents or to provide legal advice. “Surprised” is probably an understatement of my reaction to learning about this, as “horrified” more accurately describes my emotional response.

Corey D. Silverstein ·
profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
Show More