In 1985, General Electric, under the helm of then-CEO Jack Welsh, entered into the realm of television by acquiring number one-ranked television network NBC. In late 2003, current leader Jeffrey Immelt furthered GE's stake-hold into the entertainment world by merging the company with film studio Universal, forming one of the largest media interests in the nation, scoping both film and television.
It may not have been entirely obvious to most why a company known for engineering and cars would be interested in such undertakings. However, as with most successful companies, the answer lies in the corporate desire to curb stagnation by diversifying and recognizing new areas of growth. Seeing media as a "major catalyst for industrial growth," GE realized the need to participate in this emerging trend; however, recognizing their limited knowledge of the entertainment industry, they took the quicker, more surefire route – they decided to work with and partner with the best in the media world. Thus formed GE's NBC Universal conglomerate.
Adult Webmasters and affiliate programs have, by far, surpassed what is available to affiliates of the mainstream world, and content and product offerings designed to fatten your wallet can be found throughout the Adult realm. But finding a new idea or product to market to Webmasters can be near impossible; being part of the fastest and most innovative industry on the Web can be most lucrative, but it also relies on the need for original ideas and content.
And creating the best products is no longer enough. Experts from all areas are constantly looking for ways to expand their bottom line, capitalizing on new revenue streams they may have otherwise ignored. New technologies, regulations, and other challenges require that a Webmaster must move beyond the limits of their expertise and enter into less familiar markets.
Rather than stretch their own time and resources, a growing number of savvy Webmasters are turning to strategic partnerships with those already familiar with the terrain: the niche Webmaster.
Strategic Partnerships that Foster Growth
Creating strategic partnerships in order to expand affiliate product offerings is one way to grow your business. This process is known as co-branding.
Take VideoSecrets, for example. Not only have they paved the way in live chat successes through their innovative Flirt4Free product, their content offerings also showcase products from both the straight and gay sides of the business. Through their wide-ranging affiliations, the name VideoSecrets has become virtually synonymous with top names such as gay video company Falcon Studios and adult megastar Jenna Jameson; the continued success of their affiliate program VSCash.com also shows that they are on top of their growth.
Gregory Clayman, president of VideoSecrets, attributes these successes to the concept of co-branding.
"VideoSecrets has found that when done with the proper partners, co-branding/co-marketing really benefit both parties. We focus almost all of our efforts on our core competency which is 'live' and can be seen at Flirt4Free.com. Partnering lets us work with others who have complimentary yet unique core competencies that allow us to create a better service and reach larger audiences."
These principles can be broadened to allowing what may be considered a niche site – whether in terms of technology, genre, or audience – to develop into a megasite, expanding into new, non-specific areas. NakedSword.com has differentiated itself from other video-on-demand sites by incorporating this method of co-branding into its business model.
"We're primarily an online video company, providing streaming and download for third-party producers, but that shouldn't limit the type of product available to our members," says NakedSword.com president Tim Valenti. "Through co-branding, we can add more content into our site without depleting our own production resources. We seek out someone who knows their end of the business – live sex shows, online dating, hosted galleries – and focus on integrating their strengths into our basic model."
Valenti says these additions have not only resulted in a significant increase in memberships and member retention, they have also attracted many more active Webmasters into their affiliate community, housed at NakedDollars.com, due to the success of the site with surfers.
Michael Stabile, editor of GayPornBlog.com, is selective when directing surfers to affiliate Websites. It's important to Stabile that his site recommends reputable destinations to his readers because the more value he supplies, the more revenue he sees from affiliate sales. "Most of our readers don't have an unlimited porn budget, so it really helps when a company branches out and partners with a quality content provider. People are upgrading computers everyday. With each upgrade comes the ability to view a wider variety of Adult content – whether that means Webcams, digital downloads, or live streaming chats. The company that can offer a mix of media is a consumers best bet and, often, first purchase."
Co-branding does not have to be limited to large Webmaster and affiliate programs. These practices can be utilized by the small Webmaster looking to build and add content to their site. Many retail site affiliate programs, such as BuyGayCash.com and SexToySex.com, allow a Webmaster to build stores customized and branded to specific sites. Moreover, through live feed programs, hosted galleries, and video-on-demand sites, Webmasters have full access to endless amounts of content they can access and present in unique ways, to look and feel in a manner consistent with their brand. NS Direct is one such product offered by NakedSword.com. With NS Direct, affiliates and Webmasters can build a theatre for their sites, customizing logos, themes, design, and even text, while the technological framework, processing, and content is managed in the background by NakedSword.com. "Companies who want to use our content can do so strategically – allowing even a small site to host a wide variety of full-length adult titles," says NakedSword's Valenti.
Pitfalls of Strategic Marketing
Kathee Lee and Kmart, Britney and Federline, Enron and Arthur Anderson – sure you are curious about these brands, and yes, they definitely get press, but would you want to associate your company with them? The road to success is riddled with risk, and with brand recognition also comes the possibility of the wrong kind of publicity – the kind that, through "guilt by association," can lead to losses.
Take for example "The Rosie magazine debacle," which brought Rosie O'Donnell and her television talk show together with the 125-year old McCall's magazine. When the show ended in 2002 and Rosie emerged with a new self-brand, the magazine was not able to survive and the partnership proved poison to both. The woman once labeled the "Queen of Nice" quickly became the "Queen of Mean" to McCall's staffers who weren't ready to remake their brand in Rosie's image. The ensuing furor became public and caused both brands to suffer.
Like any successful business merger, it's important for each side of a co-branded partnership to let the other focus on its core strengths.
"The key is being true to the core brand's asset value," Tyler Schaeffer, a media buyer at Foote, Cone & Belding, recently said to Folio Magazine. "Failures occur when a brand is not rooted in the core capabilities and values of the content and the company that's doing it."
Co-branding is not just about tying your company's name with another. One must ensure that the brand with which they're associating can be integrated into their brand, not simply added. To ensure that you are creating a better service, you must look for partners that fit your sites, its ideas, targets, and concepts. As Clayman pointed out, Video Secrets works with the 'proper partners,' ones "who have complimentary yet unique core competencies."
Finding the "Proper Partners"
Finding the best companies to work with may be as easy as looking at your closest affiliates – ones that have already proven to be strong partners. But forming alliances involves a lot of confidence as, in a sense, you are entrusting your business into the hands of another. Making informed decisions helps to significantly reduce risks associated with co-branding unions. Therefore, you should:
Evaluate their business model:Successful businesses are always adapting to change and looking for new ways to grow. They are on top of emerging trends and have already integrated plans for growth into their business structure. Strong management, and client and customer support, all tie into a businesses model and should all be evaluated when entering strategic agreements. This is not to say that is always necessary to scrutinize the books, but to just be aware of these factors when considering joint ventures.
Work on integrating and developing sympathetic and not redundant content/abilities:As they say to writers, "Write what you know." While forming positive partnerships relies on each party's expertise in their respective area, it is important to integrate products that are unique, yet tie into the concept and audience that for your site. For example, adding MILF content to a gay bears site may send your existing customers running. This is not to say that an alliance cannot be formed, but that any venture should work to enhance both companies' offerings and appeal to both sets of consumers.
Ask for/look for references:Reputation is key. Most of us wouldn't hire a new employee without reading a resume or checking a couple of references. Reputations in business partnerships should be held to the same standard. Read about your prospective ally and talk to those who have, and currently are, working with them.
Last Word
As the Adult Internet grows, so should your business. Co-branding gives you access to another company's subscriber base and them to yours, but it's not merely about exchanging traffic. Evaluate your limits and see where another company might be able to supplement your needs. Scout out sites that would benefit from your content – perhaps a hosted gallery that needs video, or vice versa. Outline the details of the deal to prevent miscommunication when it comes time to split the profits.
Following these few guidelines should keep you strong and profitable.
Reena Patel hides from the masses in the closet of NakedSword's marketing department. However, if you absolutely need to reach her, please email her at [email protected]
