first some tidbits, and then some fake-meat and potatos
DodgeBall - The Fad That is Sweeping the Nation
The new movie has triggered a dodgeball resurgence. It may even become an extreme sport on tv this season. :)
http://www.dodgeballusa.com/
Dodgeball is Becoming America's No. 1 Summer Craze!
Gaming Open Market Start Tacking CoH Inspiration
http://www.gamingopenmarket.com/gameSummary.php?gameID=12
If You Build It, They Will Not Come
I've seen this problem time and time again with both internet and brick and mortar businesses -> falling in love with the product. There Inc. was in love with the concept of an advanced virtual world. There is a technical masterpiece. So what? I have never ever never ever seen a product sell itself. I don't care how good it is, a product, or content, never sells itself. You have to put at least half your effort into advertising. In terms of success, you will always make more money with a weak product that has great advertising compared to a great product with weak advertising.
If you build it, they will not come. If you build a better mouse trap, they will not beat a path to your door. Back in the porn days, new webmasters would come up to me and the conversation would always go just like this:
dude: "Twid! I have got this new site and Oh man! We have got the greatest content ever! We have 6' tall buxom blonde sweedish co-eds wearing santa clause suits!"
twid: "dude, that is some ultra rare badass content...so what?"
dude: "what do you mean 'so what'?"
twid: "where are you going to get traffic? where are you going to get hits? how many hits does your site get a day?"
dude: "huh? None of that matters because Twid! We have got the greatest content ever! We have 6' tall buxom blonde sweedish co-eds wearing santa clause suits!"
These new webmasters were always under the false impression that "content" drove sales. If you build it, they will NOT come. You have to hit people over the head with a frypan to get them to your site. These webmasters would get 15 hits a day and you could hear the crickets chirping. I used to say that I knew a lot of poor photoshop experts and new a lot of rich search engine spammers.
Yes, you need a good product or service, but after that, its ALL advertising and marketing. There Inc. was 90% focused on the "product" and 10% focused on the "selling".
There's Website
I hate flash. I dislike java and javascript. xml is ok but I still prefer sites without it. There Inc. loves all three of these things and all three cause excessive website grief. Getting in bed with flash was a huge mistake. Flash gimped There from the word go. All the flash on There Inc's interface could be replaced with simple code, and so many things would be more stable. Flash is cool. Flash is great for cartooning. Flash has no business on a commercial money making website. Flash banners rarely outclick regular banner. I've tested hundreds, even thousands of banners online and flash never wins. Text links always outperform java rollover links. And regular text links always always always outperform text links with decorate tags stripping away the underline. That is just a giant pet peeve of mine, sorry about the tangent. :)
Where the hell am I going with this? Oh ya :) There Inc. chooses to lock the whole freaking site behind a password login. Do you know how insane this is? This is noob of the noob management decision. I can tell that no one in There Inc has made money online with a commercial website. They are clueless with regards to site design. There is one thing that all commerce sites know, porn or mainstream, and that one thing is
Search Engine Traffic Is GOLD
What's that mean? It means that when you get hits from google, they are great hits, and have the highest chance at converting into sales. The way you get into the search engines is with content ie pages. One reason I went into blogging is because each post each day is a single html file and these pages are spidered by google, every damn freaking day! It's a slippery ninja way to get into engines. Want proof? watch this...I made this post two days ago and the google spiders already inhaled it. Click here.
There Inc has over 5,000 pages indexed by google. In porn, we would plop our panties to have 5,000 legitimate pages in google. There Inc, pisses this all away. I want to cry watching this money being pissed away....I'll show you what I mean. Click here. 99.99% of all resuls are locked behind that fucking stupid password screen. I mean COME ON...who cares if someone does not subscribe but wants to read the website! If I ran There Inc, these pages would all be freely accessable. Anytime someone tries to click on those google pages, they can't see them. I would estimate that There Inc is missing out on 10,000 unique visitor hits a day! A Day! and on every damn page on There, I would at the bottom have a small text link saying "click here to try there free". This is how you make money in the land of internet. It's about traffic and hits and search engines.
The Subscription Based Model
I don't give a rat's ass about the sale of $T or house rentals...that is all small money compared to the player subscriptions. What does NCsoft press release? They press release that Lineage2 has 60,000 subscribers and City of Heros has 100,000 subscribers. Why? Because these are the subscription based model! Porn is also the subscription based model! There is 80%+ the subscription based model. How much money is lineage making? It's easy to figure out...if they have 60,000 members at $20 a month, 60k x 20 = $1,200,000 a month, and around $15M a year. Subscription count is everything.
There management once ever stated..."we want to have 80,000 members by next december". So someone must of had a clue. I just don't think total management saw this fact.
You make money with subscription based systems by doing the following
1. Get more traffic and hits to website
2. Test your front-end to maximize the sign-up rate
3. Have the best affilate program
It's all about traffic and signup rates. No, it's not sexy. It's not about MAB DAB BLAB or the dinky. It's about cold hard traffic being converted to sales.
The Dirty Little Secret Of Subscription Systems
I will tell you the dirty little secret of recurring billing systems. This is true for porn, games, ISPs, magazines, and anything else that bills on a recurring monthly basis. Again, this is going to sound cold, but its the mathematical truth.
One of the reasons that subscription based systems make money is because of "human laziness". Yes. I know that is hard to accept, but it is true. How many of you did not cancel your Sims Online account for months after you quit player? That is not the exception to the rule...that is extremely common.
This is one of the reasons that "porn" was so successful early on the internet...it's also one of the reason it's now is collapsing. Let me explain...If you can get someone to give you their credit card for a free trial or to join, the odds are very good that they will be too lazy to quit, at least for 3-4 months, independant whether or not the product is great or just ok. Porn sites are the black ninjas of the "free trial", "3 day free", "join one site and get access to 12"...once you are in the recurring billing system, you are worth about $90 since you will be too lazy to quit. This is exactly true for games, ISPs, and magazines. You get those magazine offers all the time. Why do you think Sims tried so freaking hard to get us not to quit? Sims was using porn tricks! You could not quit online, you had to call in, sit on hold, and then they would hardsell you to stay and then offer you a free month to stay! This is the cold reality of subscription based models. Porn is collapsing because they pushed it too far...they had misleading join pages with tiny small print, they hid the cancel buttons, and charegebacks hit 2%. amex and visa had complete fits and cleaned-up all the crooks, as well they should.
What does this all mean? It means, to be financially successful, There Inc needed to focuse more on getting new sign-ups, and focus far less on new content. This would temporarily make existing members sad, but There Inc needs to make money first, then content second.
The Way To Do An Affiliate Program
There Inc was close on this but late. The move with Commission Junction I would give a 6 out of 10. The best affiliate programs pay out large commission. There are a couple ways to do this. One way, which is riskier, is to determine how much a "join" is worth to your site. You have to take into account the free trials. You eventually get a number...average customer is worth $40. Once you know that, you then offer close to half as commission. You pay out $20, not $3 or $5. You pay out approx 50% and go for volume. I think There might of had better luck with no free trial OR only pay $20 if the free try converts to a staying member. When you pay out high, you then get every gamer site around, putting up your banner. If you run a good business, you should have a strong margin and still be making money since you are making the affiliate do all the work.
A safer way to do this, that is just about as effective, is to pay out 50% of all income. This is easier to track and their is less fraud. So now you say to all affiliates....send us signups, whatever that persons spends at There Inc, forever, we pay you 50%. Again, you would have the most kickass gamer affiliate program. This is how adult has done it for years...smaller margins, greater traffic.
My ideas are questionable in this case because no one knows if There scales. It seems that they do not. There is quiet in terms of people, and laggy as a mofo. It must be game objects or something. I don't think the world, in the current condition, could handle large amounts of signups, and so my ideas may be a moot point.
About The Author
I know I am an opinionated mofo, and much of what I say you can take with a bag of salt. I have been online since the mid 90s and I have run several successful businesses online, mainly in the adult sector. I wanted to give you a few points about me to establish some creditability so folks don't think "aw Twid, you are just blowing smoke out your ass again!". hee hee.
One of my first sites, lips.com (the site does not really exist anymore and is just a traffic funnel. don't go there or you might get a boob in your eye.) that site at it's peak did 40,000 front page unique hits a day. Not raw. Not page views, unique visitors. It's best day ever was in 98 and cleared $700 for the day. My next project was a banner exchange. Many of you old school people will remember Link Exchange. LE was purchased my Microsoft and pretty well destroyed, but at one time, Link Exchanged ruled. I used to be email buddies with the owners there and we would trade notes and ideas. LE was showing 20,000,000 banners a day....and guess what, so was I. They were mainstream, and I was adult. They got bought by Gates for $80M. Holy! Makes me wish I was mainstream. It took 100 or more emplloyees to run LE. I ran SexSwap with me, the wife, and programmer Gus. LOL. Almost 30 servers and close to 10 T1s at peak. Because of these experiences, I know about databases, server loads, traffic, programming and code. My banner exchanges controlled 200,000 unique hits a day at peak, 100,000 I could aim at any website. I know what websites designs make the best signup rates. Code simplicity always wins. As a small aside, Gus wrote sexswap in C++ and was his propriotary database. We ran on NT for years and there is a flaw in the MS TCPIP stack when you severely hit them with traffic. I know that MS tried to convert LE to NT and could never do it...we were able to. Yay! :) I think any single box could handle 70 (or 700 I forogt now) banners a second or something and when we got to 80, we would toss a new box at it to take pressure of the stack. LOL. I think the best peak day for SexSwap was like in the year 2000 and was a $3,500 day. Everything in adult slid downhill in conjunction with the dot com bust and heavy competition.
Sally, I can hear you thinking... "Twid, I don't believe you!" :P OK, let me do some google searches to find some crusty old arrticles. :D September 20, 1999 and this was the start of the dot com boom! Yahooo. Here are the Neilson ratings for top banner showers Sept 1999. Number 5 in the world...in the world, was me. ROFL I created SexSwap banner exchanges. Notice I was showing almost as many banners as Yahoo.
So, ya I occasionally spew-the-fluf :) but I've been lucky enough to have several successful online sites. These sites have handled massive traffic and massive DB hits. I've tested more banners and site front-ends than almost anyone on earth. I've bought programs in just about every type of code. I've got a pretty good idea of what makes money for a site and what doesn't and what code makes a site work and what doesn't.
Holy! This has to be a record amount of blab for one blog post. This has been a FULL PULL. See you tomoorow. ;) Don't forget to watch Pride! from Japan tonight on PPV!