Like their mainstream counterparts, the online adult industry is feeling the economic pinch — and it's not enjoying the pain. But the kind of people who work in adult are a hardy breed, and not easily fazed.
A case in point: When AVN Online asked MILF model Carrie Moon (www.CarrieMoon.com) if she has a strategy for dealing with recessions, she replied with a smile, "Yes. I stop shopping as much as I normally do!"
Bravado aside, the current downturn is cutting into website revenues. In fact, when the stock market tanked, "our sales were down for several weeks," said big-boob star Lisa Sparxxx. "I did a lot of freaking out."
So how can adult website owners fight back? What are the proven recession beaters that the pros use? To find out, we asked some of the industry's leading lights; here's what they told us.
Tip #1: Focus on What You Know, But Remain Open to Opportunity
"The best way to thrive right now in the current economic downturn is to focus exactly on what areas generate the most revenue for your company and direct your resources to that fully," said Michael H. Klein, president of LFP, Inc.. "Trying to salvage a dying business can quicken your own exit, so you really need to move forward in areas that have the potential to keep the revenue flowing and growing."
Once you have focused on your most successful product, "do it better than anyone else," says Grooby Productions' owner Steve Gallon.
Burning Angel owner Joanna Angel agrees with Gallon.
"Personally, I think the way to survive is by focusing on quality, not quantity, which is very strange for a lot of people in porn," Joanna told AVN Online. "If you put time and energy into making your product unique, people will still buy your porn even through these tough times."
A word of caution: Focusing on what you do best does not mean closing your mind to other opportunities. The online sex industry is constantly changing and evolving; those who play it too safe will find themselves left behind and broke in a few years' time.
"You still need to be aware of any new avenues of distribution that are starting and making sure that you get in on the ground floor of those distribution methods," said Klein. "At the same time, look at what areas are on a steady decline and either see if there are any fixes that can be done and if not, then move the resources that you have behind those areas over to the ones with growth potential."
Tip #2: Cut Costs Without Sacrificing Quality
Reducing expenses always makes sense in bad economic times, but only if the reductions do not compromise your online quality. After all, your paying customers really don't care about your bottom line, but they will get worked up if you scale back on new content!
Grooby is keeping costs down by "cutting our shooting schedule down from four to six months to one to three months, the time between shooting models and them appearing on the site," Gallon said. By doing this, Grooby has effectively created and paid for a pool of new content.
"We're also spending a lot more time working on getting our own traffic, as well as cross-selling to our companies heavier," Gallon said.
Another cost-cutting option is to rely on free adult networking sites like xPeeps.com to promote your content.
"This will allow you to create a profile that will work essentially like a billboard to your site," said xPeeps' Suzann Knudsen, "and a little savvy networking could reap big rewards."
Over at ExoticGold.com, owner Rami's advice is short and to the point: "Cut the cost of the production; fire all the unnecessary staff. And put a hold on new projects; it's not a good time for new big things."
"Shorten the time between outlay of your budget and return," said Gallon. "And remind your staff that this is an economic crisis, and unless they all pitch in and work their asses off, there might not be a job!"
Tip #3: Make the Most of What You've Got
Right now, your site has paying subscribers. To retain them, you need to "improve your products to keep the customers happy," said Rami.
Obviously, fresh, hot content in the highest possible resolution is key to achieving this goal. But there's more you can do, according to xPeeps' Knudsen.
"I think some site owners have become complacent in how their sites look and function," she said. "Now is a great time to make sure that all of the links on your site actually work, that you haven't buried links to money-making features too deeply in member areas, and maybe freshen up the look and feel. Figure out what they are buying on your site and make sure it's available. Treat your members like people, not dollar signs: This may be the time to offer them a special of some kind and make them feel welcome, or just welcome them back."
Tip #4: Learn to Live with Tough Times
Grooby's Gallon takes a philosophical view of the current economic crunch.
"My personal feeling is that we've had it so good for so long, that the ‘settling' in the industry is probably closer to how profits should be instead of these huge amounts we had in the first 10 years," he said. "It's much closer to mainstream retail - although not as bad! We're going to see a lot more attrition over the next few months as some companies find it hard to make ends meet."
But fear not: "At the end of the day, there will always be surfers wanting to buy porn — and the Internet is a cheap form of sexual outlet compared to DVD buying, strippers, or escorts," Gallon said. "New markets are emerging constantly and these need to be investigated and catered to."
The bottom line: Surviving the current recession requires a renewed focus on core businesses, quality, and customer service. Ironically, these are the keys to succeeding in any business during good times or bad, whether you are selling boobs, buns, or bagels.
"And finally, while everyone is trying to maintain the income levels they had in the past, remember that we're all in the same industry and no one needs more enemies," said Knudsen. "Play nice!"
This article originally appeared in the February issue of AVN Online. To subscribe, visit AVNMediaNetwork.com/subscribe.
