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YNOT University: Educational articles and tutorials

Get A Piece of a Four Billion Dollar Pie

Posted On 30 Nov 2000
By : admin

Outsource your Web site to Dedicated Solution Providers for ROIOutsource your Web site to Dedicated Solution Providers for ROI

The Internet adult industry is a four billion dollar market, and is still continuing to grow exponentially. In extreme contrast to other established technology businesses, the adult marketplace on the Web is an underdeveloped cottage industry, which gives entrepreneurs the opportunity to participate in a true free market.

While matured e-commerce companies are consolidating under the command of a few major, publicly traded companies, this is not the case in the adult industry. Most industry participants are individual webmasters or exhibitionists who work out of their homes rather than big offices. Since the market isn’t dominated by a shrinking number of conglomerates with huge market caps, many small businesses can compete effectively for their own small share of the marketplace.

These small businesses are able to compete due to the taboo that surrounds pornographic content. Most major companies won’t engage in the production or export of adult content because their shareholders won’t allow them. This provides individuals and small businesses the unfettered opportunity to service the large demand for such content all by their lonesome.

This is an ironic development, since the Internet adult industry is by far the fastest growing and most profitable segment of the online marketplace. USA Today reported that nearly one-third of all Internet users visit adult sites, and in a recent report, CNN stated that adult Web sites are the most consistently profitable sector of the Internet year after year.

Using sophisticated, outsourced business models, savvy pornmasters are evidently racking in and retaining a lot of this dough. Most of this revenue stream is achieved due to the rapid return on investment that these small business people realize from outsourcing their hosting requirements.

According to a recent IDC study, most hosting customers realize a 301% ROI rate when they outsource their hosting rather than build bandwidth and connectivity capacity in-house. Most adult webmasters outsource their hosting and automate their sign-up and credit card billing procedures to avoid the huge capital outlay of equipment and labor needed to maintain these services in-house. Because most of these webmasters select high-quality and powerful outsourced solutions, they also receive remarkable reliability, scalability and accessibility.

The IDC study revealed that businesses that outsource gain access to new market channels and customers because they can concentrate their efforts on brand promotion and experimentation with secondary revenue models. Another major finding of the report was that businesses experienced an 88% drop in downtime, which resulted in a consistent revenue flow and improved management of online systems. Outsourced hosting therefore is the preference of most experienced pornmasters.

Most trust their sites to dedicated server-based solutions. These solutions host one customer’s site or sites on a single server that is optimized for large volumes of Web traffic. Since the equipment is not shared, all site and e-commerce development on the server is secure.

Although more expensive than other hosting solutions, dedicated servers are well worth the investment for adult businesses that are poised for heavy ROI. Dedicated solutions provide considerable savings for adult sites experiencing huge growth. These savings are realized through the continual capital investments made by hosting providers into network redundancy and service maintenance.

Since the hosting outfits invest in state-of-the-art equipment and connectivity, pornmasters need not worry about staying ahead of the technology curve. This allows them to focus on developing their business, so that they can lay claim to a large stake of the revenues generated in the Internet adult industry without experiencing a huge barrier to market entry because of cost, technical expertise or dominance by huge corporate players. Outsourcing, is therefore a fundamental income generator for thousands of pornmasters competing for their piece of a four billion dollar pie.

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YNOT University: Educational articles and tutorials

Get A Piece of a Four Billion Dollar Pie

Posted On 30 Nov 2000
By : admin

Outsource your Web site to Dedicated Solution Providers for ROIOutsource your Web site to Dedicated Solution Providers for ROI

The Internet adult industry is a four billion dollar market, and is still continuing to grow exponentially. In extreme contrast to other established technology businesses, the adult marketplace on the Web is an underdeveloped cottage industry, which gives entrepreneurs the opportunity to participate in a true free market.

(more…)

  • google-share
Previous Story

How to Get Free Content for Your Site

Next Story

Deterring Bandwidth Theft

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