educational

Pay Site Revenue Streams: Part 2

In my previous installment, I tried to get a handle on the incoming revenue stream of Dawn's new site, but I had a feeling that I'm only at the beginning. Follow along as I contemplate pay site revenue models, and some of the basic numbers behind them; they just might apply to your own business plan:

You'll recall from the previous article that our goal was to get away from the "feel good" pricing model that left us with a $29.95 a month price point simply because "it's less than a dollar a day!" I call that "feel good" pricing, because to us, "a buck a day" is reasonable for just about anything like that, by which I mean other entertainment services, including cable TV, or a single beer from the local convenience store on our nightly walk along the beach. Fun that cost's only pennies to have, so why not go for it? That's "feel good" pricing.

For a more professional approach to pricing based on profits and production costs, we must look at gross and net membership revenues and then subtract some of the common costs involved in producing and delivering the product that we're charging for. Doing this is the easiest way to get closer to your actual income per member (your 'profit') which is definitely NOT $29.95 per month!

This is such an important part of the pay site game, yet many site owners (real amateur sites in particular) will tend to base their pricing "on what the other girls are charging" — thinking this is an acceptable way of running a business. Sure, competitive pricing models are found in most every industry, but choosing this strategy, just like the "feel good" model above (or any other), should be done only after analyzing the facts. Let's take a closer look at some numbers:

Product:---- Amount:---- (-15% fee)---- (- 10% Reserve)

3 Day Trial---- $2.95---- $2.50---- $2.25

1 Month Membership---- $29.95---- $25.45---- $22.90

3 Day + 1 Month---- $32.90---- $27.95---- $25.15

3 Day + 2 Months---- $62.85---- $53.45---- $48.10

3 Day + 3 Months---- $92.80---- $78.90---- $71.00

In the example above, we begin with the revenue generated per level of membership, projected out to 3 months for an initial look at the money flowing into the site, and its profit potential. Beginning with a basic 3 Day Trial Membership for $2.95 as well as a single month's full membership fee for $29.95 (that recurs monthly at $29.95)

I have charted the gross amount, then gross - ibill's 15% credit card processing fee, then finally minus ibill's 10% reserve holdback, which is refundable after 6 months. I wanted to include this additional "discount" up font in my calculations, because even though you should get the 10% holdback money back, it's half a year later, and so to be a little more "current" with our initial price modeling, we must base it on "today's" actual income. The member gave you a chance, but if you don't deliver, they don't stay.

Average Length of Stay
The chart also makes it easy to see that the longer a person stays a member, the more money you will make off of them. This is why retention is so vitally important for a pay site's success and profitability. Since this is a brand new, as yet to be fully launched site, no retention figures are available, so a three month average membership retention rate was chosen as "reasonable." Single model amateur sites, especially quality ones, tend to retain members longer than many other sites, and so the possibility of higher revenues certainly exists, and will be encouraged.

I also have no idea what the conversion ratio of 3-Day Trial to Monthly Membership is going to be. This has a dramatic effect on earnings, and is most influenced by the quality and content of the site's Member's Area. Beyond any role that procrastination plays in the cancellation process, having an easily navigable, easily accessible, and content filled site, will increase the number of members willing to extend their membership further.

If the number is low, than I know there's a problem with the site. After all, the member gave you a chance, but if you don't deliver, they don't stay — and that is the difference between a $2.25 sale, and a $71.00 sale: The number of course, can never be too high.

At this point, I'm willing to pull "around $70" out of thin air as an average member value we could be "expecting." But the more I look at the numbers, the more concerns I have. Stay tuned:
~ Stephen

Copyright © 2025 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

opinion

What France's New Law Means for Age Verification Worldwide

When France implemented its Security and Regulation of the Digital Space (SREN) law on April 11, it marked a pivotal moment in the ongoing global debate surrounding online safety and access to adult content.

Corey D. Silverstein ·
opinion

From Tariffs to Trends: Staying Resilient in a Shaky Online Adult Market

Whenever I check in with clients these days, I encounter the same concerns. For many, business has not quite bounced back after the typical post-holiday-season slowdown. Instead, consumers have been holding back due to the economic uncertainty around the Trump administration’s new tariffs and their impact on prices.

Cathy Beardsley ·
opinion

Optimizing Payment Strategies for High Ticket Sales

Payment processing for more expensive items, such as those exceeding $1,000 per order, can create unique challenges. For adult businesses, those challenges are magnified. Increased fraud risk, elevated chargeback ratios and heavier scrutiny from banks and processors are only the beginning.

Jonathan Corona ·
profile

WIA Profile: Lexi Morin

Lexi Morin’s journey into the adult industry began with a Craigslist ad and a leap of faith. In 2011, fresh-faced and ambitious, she was scrolling through job ads on Craigslist when she stumbled upon a listing for an assistant makeup artist.

Women In Adult ·
profile

Still Rocking: The Hun Celebrates 30 Years in the Game

In the ever-changing landscape of adult entertainment, The Hun’s Yellow Pages stands out for its endurance. As one of the internet’s original fixtures, literally nearly as old as the web itself, The Hun has functioned as a living archive for online adult content, quietly maintaining its relevance with an interface that feels more nostalgic than flashy.

Jackie Backman ·
opinion

Digital Desires: AI's Emerging Role in Adult Entertainment

The adult industry has always been ahead of the curve when it comes to embracing new technology. From the early days of dial-up internet and grainy video clips to today’s polished social media platforms and streaming services, our industry has never been afraid to innovate. But now, artificial intelligence (AI) is shaking things up in ways that are exciting but also daunting.

Steve Lightspeed ·
opinion

More Than Money: Why Donating Time Matters for Nonprofits

The adult industry faces constant legal battles, societal stigma and workplace challenges. Fortunately, a number of nonprofit organizations work tirelessly to protect the rights and well-being of adult performers, producers and industry workers. When folks in the industry think about supporting these groups, donating money is naturally the first solution that comes to mind.

Corey D. Silverstein ·
opinion

Consent Guardrails: How to Protect Your Content Platform

The adult industry takes a strong and definite stance against the creation or publication of nonconsensual materials. Adult industry creators, producers, processors, banks and hosts all share a vested interest in ensuring that the recording and publication of sexually explicit content is supported by informed consent.

Lawrence G. Walters ·
opinion

Payment Systems: Facilitator vs. Gateway Explained

Understanding and selecting the right payment platform can be confusing for anyone. Recently, Segpay launched its payment gateway. Since then, we’ve received numerous questions about the difference between a payment facilitator and a payment gateway. Most merchants want to know which type of platform best meets their business needs.

Cathy Beardsley ·
opinion

Reinventing Intimacy: A Look at AI's Implications for Adult Platforms

The adult industry has long revolved around delivering pleasure and entertainment, but now it’s moving into new territory: intimacy, connection and emotional fulfillment. And AI companions are at the forefront of that shift.

Daniel Keating ·
Show More