Lower Sponsor Payouts: Good or Bad for the Industry?

Posted On 08 Aug 2001

INDUSTRY NEWS

The latest net controversy swirls around sponsor payouts and the direction they’re headed. I wrote about this topic recently in the ADULTWEBMASTER Magazine: my basic stance was that the lowering of high payouts was inevitable due to industry saturation and fraud, among other factors. I also praised CyberErotica’s Fantasyman for coming forward and making the announcement that payouts were being lowered. I’ve always maintained that an honest payout beats any other offering out there. I posted my article and waited for a melee.

I was impressed – and surprised – by many of the responses submitted by our readers. Usually, people don’t respond well to unforeseen adjustments in their income. David K. of Nightcharm.com wrote, “I’ve the patience level of a gnat; and have been waiting — seemingly forever… [for] a complete overhaul in how biz is being conducted in general.” He went on to conclude, “The old halcyon days, when your grandma could put up a porn site and make extra canasta money, are long gone. Thank god.”

Compdoctor (of cartoon-adult.com) concurred: “I, too, gave FM thumbs up for having the balls to admit what your article informed us of. Now, you get a thumbs up.” Aww… thanks, Compdoctor.

Of course, with the large number of responses to this article, it was inevitable to see some opposing opinions presented. Jamie wrote this note:

“Oz, we didn’t tell you to give us $35 per signup, much less $50 per signup. It’s not our fault you guys put yourselves in the position of paying out too much. It’s your decisions that put you where you are. I think it’s great you’re trying to bring things back into perspective. But the reality is you guys did it to yourselves.”

I more or less expected to get a reaction like this one. I want to address it here at YNOTNews… the BEST weekly publication for adult webmasters… (I am free to state my opinion Judd, you better not edit it out!) because I believe it is probably representative of the sentiments of many other adult webmasters.

On the face of it, Jamie’s point is valid. Nobody forced the sponsors to keep upping the payouts. Or did they? The fact is, the market does drive the payouts. Webmaster traffic is valuable to sponsors; valuable enough to raise the amount paid for a signup. I liken it to MAD, an acronym from the ’80s, which is short for ‘Mutually Assured Destruction.’ The U.S. and Soviet Bloc kept adding more nukes to their arsenals despite the fact that they had enough to destroy the earth many times over. Why? It was critical to stay even with each other in terms of nuclear capability. It is this same phenomenon, which drives webmaster payouts – except in our example, I think cooler heads will prevail. The change in thinking has already begun.

I do believe there’s a light at the end of this tunnel – and it’s not a train. This is not a disaster; it’s a natural shift as our industry matures. We’re still in a very profitable industry with innovative products and concepts. We are still paid well for our efforts if we work hard and smart. It’s just more… realistic now.

I am heartened by the attitude exhibited by most adult webmasters – understanding and accepting of the fact that these changes are coming. I even believe that most webmasters understand that these changes are for the good of the entire industry. By God, we are growing up. I, for one, feel privileged to have participated in such an important and far-reaching discussion. And I thank all of you who have contributed your thoughts as well. Are you a forward-thinking adult webmaster? Prepare for the next phase of the adult Internet: sustained, long-term profitability – because you’re going to be a part of it.