I'm willing to wager that I could not have gotten one of these investments through the investment committee. The statistic, if it is accurate, that 25% of all searches are for porn is staggering.
"Accounting for approximately 25% of all search engine requests, on a planet that has a population exceeding 6 billion people, the adult industry clearly has a global demand. You would think that there would be a large population of people who are begging to invest in the companies that create some of their favorite adult products, services, and content. However, there has never been resource available to the investment community that would enable investors to look at adult industry investment deals; and because approximately 98% of the estimated $57 Billion Dollar Adult Industry consists of privately held companies, there is no easy way for investors to even find these companies. That is where AdultVest.com comes in…"
The big problem is its tough to monetize this traffic as almost 99% of the adult searchers are looking for free content and its almost impossible to convince them to open their wallet...
This is the reason the conversion ratios of most adult sites (guess its around 0.001%) are well bellow that of mainstreem ecommerce sites (around 1%)
Posted by: Gopi | Dec 21, 2005 at 01:59 PM
As a person actually IN this industry, it's true most surfers are looking for "freebies." The industry is fairly good at turning them with ratios in the 1:500 to 1:1,000 range.
But there are other more profitable segments of the industry.
There are still segments that have a lock on getting customers to pay.
We manufacture the Virtual Sex Machine, and have been growing steadily for seven years.
But, like any other industry, it requires R&D, and the kind of investment that the non-adult industry gets everyday.
When I think about the loser ideas that venture capitalists invested in over the years we were developing and producing this product it makes my head spin.
Those same investors that thought home delivery of groceries was a "new idea" and invested millions in a loser idea, (That won awards!) would never consider investing money in a company like ours with a solid track record, and happy clients. The money doesn't care.....it's only the prejudice of the investors that stop them from making money.
We've managed to grow, slowly, with private money. But it's a far cry from what we could do with "real money."
Posted by: Eric J. White | Oct 14, 2007 at 12:38 PM