Re:How we convinced angels to invest in our porn startup
by jnp on Monday April 08, 2013 @12:28PM
(#5512692)
Interesting questions. I'll touch upon this in a future blog post.
For now, we've indirectly answered some of those points in an infographic we put together: http://paintbottle.com/press/infographic_production.jpg
Re:How we convinced angels to invest in our porn startup
by anigbrowl on Monday April 08, 2013 @12:34PM
(#5512734)
I was struck by the observation taht revenue has been cut in half and production has fallen drastically within 4 years. as someone whoworks in the conventional film industry, this is pretty owrrying.
What's your business model for serving up HD video for free? I'm not really a porn consumer but I can see how it will be attractive, just not where your profit comes from.
- Supply chain: how do you source models? How do you negotiate fees? What is the average fee, and how do they charge?
- Are there inter-business politics? Like, will some models refuse to shoot scenes with other models?
- How do models work legally? Do you contract them or employ them if they've never done a shoot before?
- What are your profit margins like, and what are your breakeven numbers like?
- How often do you demand STI testing data? Are models worried about this?
- Are models your main source of COGS? What are your major expense items?
- What are the most challenging decisions you have to make on a daily basis?
- Is porn really a hyper-competitive market?
I've seen business cases from a ton of different industries, but adult entertainment has been completely secluded. Any information would be wonderful :)