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HOME arrow ARTICLES arrow THE HIGH COST OF EFFICIENCY

THE HIGH COST OF EFFICIENCY PDF Print E-mail
Monday, 22 August 2005

The High Cost of Efficiency

You can’t live in a big city like New York or San Francisco without having some experience with panhandlers. My exchange this evening with one woman in particular, outside Jack in the Box, triggered a realization.

Like many industries, ours included, she’d obviously met many, many customers in her day -- and she acted like it. What struck me the most was the swiftness of our exchange. For all my years in both New York and San Francisco, and the many thousands of similar exchanges I have had, she impressed me. It was perhaps all of two seconds long, and ovewhelmingly efficient.

She got no money from me.

To better understand the "marketing" at work in the panhandling biz, I tried to put myself inside her head a bit -- and beyond that, I also tried to surmise and factor in the effects of her long experience.

  • How did the technique of panhandling that I'd observed develop?
  • What conclusions about her Customer had this marketer come to, for all her years in the field?
  • Were they sound choices?
  • What could any of it tell me about larger trends in the "industry"?

I've been told I have a gift for combining praise and condemnation into single statements. Well, that certainly is true, and I have been giving my dear adoptive Industrial Mother -- the porn biz -- a hard time on a number of fronts for nearly a year. What can I say but...

I LOVE YOU, Mom. It's only because I care so very much.

In other articles, I've written (ostensibly) on other subjects, I have held the enormous financial success of the porn business responsible for a number of the ills that plague us. These ills come in all sizes. From a general aloofness and lack of urgency at the highest levels of leadership and influence, to a narrowness of imagination in the details of making and selling our Product.

Before I had even uttered a sound, Debbie (just to giver he a name) had already disengaged me and turned on her heel in the direction of her next prospect.

Was it my face? -- I wondered. What did she recognize in me tonight, that meant to her "no sale"? She was quite right in her assessment of me, of course. Tonight I was not disposed to buy. But the question remains -- did she discern that in my case, or did she just happen to guess right?

Bravo to Debbie, if the first case -- that would indeed qualify as an evolution of Marketing Science. But, if Debbie is, instead, optimizing for throughput, at the sacrifice of qualitative discernment -- well then, that wouldn't be so good.

If you are a business owner/operator in Adult, and your numbers look like this...`

FINANCIAL GRAPH
and this...


It's going to be difficult convincing you there may be something wrong.

But, as I look out across the landscape of our marketing methodology, as I visit the sites of our most "successful" operators, I'm becoming concerned that we have been focusing on efficiency, with admirable results, but may have dropped a bigger ball.

I have written speculatively before now about the Role of Porn in Sex Culture -- we're not just selling smut, we're making the images that people see (WE MAKE THE IMAGES!). To look at what we sell and how we sell it, we don't seem to understand that we (the Pornographers of the world) are telling people what sex is. While that is an awesome responsibility, it may not concern you as a businessperson -- especially if you are "successful" and feel little reason to examine your methods.

But, my little encounter with Debbie tonight has made me realize that optimizing for maximum throughput and maximum revenue yield per existing customer may be (in spite of all it has done for financial performance so far) a grievous business mistake.

FINANCIAL GRAPH

Like Debbie, the porn business understands that sometimes people just don't want to look at us, and might for a moment wish to pretend we don't exist. Though the products we "sell" are very different (Us: sexual gratification. Her: a brief feeling of charitability) we are both very well acquainted with rejection. A person who stands up for the rights of the homeless in Washington may not offer a coin on the street. Likewise, the Senator who jerks off to Tawnee Stone every day in his office, may not have good things to say about the industry that made the product that gratified him.

Both Debbie and the Porn Industry are justified in feeling a little insecure. It's reasonable for us to have a chip on our shoulder.

Even in my brief, two-second exchange with her, I could see it in Debbie's eyes that she had been spit at and spoken to with contempt -- many, many times. It's inevitable that such treatment will take its toll on a person -- or an industry.

It would be unfortunate (not to mention bad business) if we let our critics make us afraid to market to new customers. "Demand" may be a foregone conclusion, but if our marketing doesn't reach beyond our current borders -- we're already in a ghetto.

If we have had nothing to say to our customers before they hit the join page, then, when they buy, if the buy, what the buy will have all been determined upstream, by somebody else.

2HP


PS: I want to congratulate RageCash on the launch of an exciting new program, that is obviously not afraid to innovate and experiment and to reach out for customers in new ways. Well done, guys.

RAGECASH.COM

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