Opinion: What is the perfect price point for webcam sex?

The Perfect Price for Webcam Sex

Some companies sell expensive products that cater to the high end of the marketplace. Others cater to the low cost value market. But most companies aim to deliver products that deliver good value at a price point that also ensures decent profit margins. This is what’s often referred to as the sweet spot of the market.

The adult webcam sex industry is slowly closing in on this magical sweet spot when it comes to pricing. They have, for a long time, focused on the higher end consumers with the still popular pay by the minute model. While somewhat profitable, it also leaves a lot of money on the table as it caters to a minority of cybersex consumers. On the lower end of the spectrum (cost wise) we find popular sites such as CAM4, Chaturbate and MyFreeCams. These sites offer great value because they offer a free product while encouraging users to tip performers if they enjoy the entertainment being provided.

While both these pricing models have their advantages and disadvantages, I don’t believe they quite zero in on the sweet spot in terms of profitability for both studios and performers.

So what is the sweet spot? $5.99 per minute? $2.99 per minute? 99 cents per minute?

Well, none of the above. I think the best price for webcam sex is 3 cents per minute. Now before you dismiss this theory, let me explain how it can ensure greater profits for both webcam sex providers and their employees.

If you visit any popular webcam sex service, you’ll notice that performers often have hundreds of viewers in their free chat rooms. In fact, this number can be in excess of 1000 on free sites. Now, imagine if free chat rooms were replaced with a 3 cent per minute fee. This means that customers would pay $1.80 per hour for a MyFreeCams type of cam show. For $18, they could enjoy 10 hours of webcam sex. That price point would be very attractive to cybersex consumers who cannot afford to spend $2.99 a minute for webcam sex. And that is a large percentage of viewers.

So, how does this benefit performers? Currently (on free sites), performers are paid in tips which depend on the quality of their live performance. On pay per minute sites, performers must sit in free chat and don’t earn any money until someone takes them private. Using this new pricing model, performers would receive 1 penny per minute from every person in their chat room. Therefore, if 500 people are in the room, the performer automatically makes $5 per minute, or $300 per hour. Think that pay rate would attract top shelf cam talent?

As far as the studios go, they would receive the other two cents per minute, or $600 per hour per performer. This could be used to cover infrastructure cost and affiliate remuneration, while leaving a comfortable profit margin for their efforts.

The beauty of this pricing model is that it helps attract top talent, pays them well while still rewarding top performers. It also offers exceptional value for consumers. It weeds out the freeloaders while offering the vast majority of viewers outstanding value for their cybersex dollar.

It’s a pricing model where everyone wins. So what do you think? Is the 3 cent per minute price point a good idea? Let us know in the comment section.

 

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