If you follow these pages, you had probably saw The Tumbling Sniper post in this site. If not, do it, I spent a lot of time writing it!

Now, back to this post’s subject,  some people wonders whether what I say is true, just made up stuff or just some honest (yet unproven) theory. Well, after you read that post, please take a look at this post at GFY board. As you may see, GFY post is almost a month older than mine, yet it describes what happened to Private almost to the A. Of course, it’s not like I was predicting something, what I exposed in my original post is a quite common occurrence in big companies, and sadly, one of my favorite adult sites is the victim of it. The ‘good news’ for you is that now you can see a live example of what I was saying, and hopefully, you’ll be able to learn something from it.

So, what can we learn about this? I know most readers of these pages are very smart so I won’t go in condescending mode and explain it. Plus, it’s my intention not to give you the fish, but the fishing gear to get more fishes. The fishing gear here is RATIONAL THINKING. Now, go to Private and take a close look at that site. If you followed my posts, you’ll probably be able to determine what’s wrong with that site (tip: it’s more than one thing). The funny thing is that this is a new tour, and quite frankly, it’s improved over previous version. Nevertheless, with the state of things in adult, you’ll need something more than just some slight improvement. Either you go on a massive improvement OR you change radically your business model*

Another funny thing is that, due to its history, Private has content that makes it possible for them to get massive sales by just changing the focus. ie, they have the most original movie ever shot in adult, filled with superstars and it’s almost a secret. Basically, this is what happened to Private: their human resources were sub-par for the task, they had a mix of non-adult industry personnel and some adult industry people working in a 1 company context with lots of ego clashes. Again, everything I said you have to avoid in the Tumbling Sniper post.

Now, do I think Private is bound to die? No. They are one of the biggest adult companies in the world and they get there not because they’re stupid. Of course, they’ll need to make something more than a few cosmetic changes, they’ll need to hire professionals, and I don’t say “professionals” like in “they have a MBA or a PhD or whatever”. I mean professionals in their own field, with the ability to interact but with freedom of movement. They already said they’ll try something different. Good for them, and I really hope this time they get the results they deserve, if they do what I think they will do, and they do it right, I can’t see how they can fail. Of course, if they continue on their own self-destructive path…. well, nothing good will come out from it.

* Berth Milton, Private’s CEO said the following: “There are ways of making money from non-paying traffic and that’s what Private is going to do. I can’t reveal anything more about our strategy, but we’re going to be more and more free, which will help us recruit paid subscribers.”

Note: This is the continuation of Marketing: The Sniper and the Machine Gun models (Part 1), please refer to it in case you don’t understand what is this article about. It’s highly advised to read it first either way.

So last week we saw our incredible sniper maximizing the results of his actions by acting smart and carefully aiming to his target instead of just shooting bullets at random. Easy to say, hard to do, but at least now you have some insight on how to do it and hopefully you started doing it. This week’s article is about what happens when companies grow to a level where they get so big and powerful their target’s are becoming a real problem. I’m calling it “The Tumbling Sniper” and you’ll see why.

Before anything, please take a look at the image below these lines:

As you can see in this nice 3D model (not so coincidentally, the graphic mathematical representation of this model is a 3D graphic as well), our great sniper became more powerful, more resourceful and, at least in theory, he has all targets at sight and within range.  In his mind, he can win the war by himself, but not everything is as promising as it looks. Let’s see: after his first campaigns, he has a solid foundation (budget) that provides him with more range. He also wants to keep his position in the market, so he needs to add an additional level of resources for branding. However, to keep himself going stronger, he needs yet an additional level: human resources. Metaphor aside, this is the bread and the butter of business administration: how to keep your business organization rational.

This is one of the biggest challenges an organization will need to face sooner or later, and it will define whether this organization will keep growing or just disappear. In our example, we can see how that 3rd level causes a real problem: our sniper lost his accuracy and he’s busy trying to hold equilibrium rather than getting new targets, while other snipers are closer to the targets. To make it worse, our sniper’s range clashes with the other sniper’s range (competition), which means there will be more resources applied to fight the other snipers as well. In business terms, our sniper will have an untouched market (the reddish zone behind him in the graph), a shared unfaithful slice of the market (the zone our sniper and other snipers are fighting for) and an exponentially growing amount of non-targeted marketing actions.

As you may imagine, this means our sniper (who isn’t a dumb one) must do something and he must do it immediately. The “beauty” of this is action paths will get really limited, making the choices more clear. However, as time passes by, the cost for taking each path will increase. In this model, there are 2 obvious choices:

1. Professional development: Improve human resources by hiring professionals or by adapting the existing human resources via training
2. Atomization: create smaller business areas with a high degree of independence between each other, each one of them dedicated to a certain market target (product, service, etc)

Personally, I think that in 80 or 90% of situations, option number 2 is the best. Of course, it’s more expensive, but it usually gets the biggest and better results, therefore it’s the path followed by most (if not all) successful companies. You can see this happening in adult industry as well, only that in a lesser scale and usually with a higher degree of inter-dependence between business units.

Real life techniques

Stronger foundations

To provide our sniper with a stronger base, we need to maximize the results in the sales over business levels costs equation. In maths terms:

x=I/(B+Br+HR)^12-1

where I=Total Income, B=Budget, Br=Branding Costs and HR=Human Resources applied to marketing actions. 12-1 is the period (if we want 6 months, it will be 6-1 and so on). Needless to say, the higher x is, the better we’re doing.

Question is: how do we achieve this if we don’t have a big budget or a strong business organization?

Answer is: TECHNOLOGY.

First of all, if you want to run a tight ship by using applied technology, do yourself a favor and HIRE A PROFESSIONAL PROGRAMMER.

Now, let’s get our hands dirty. Take a look to our previous tutorial as well as Data Research: Working with Search Engines. I’m sure you already know what will this be about, but just in case, what we’ll try to achieve is smart data tracking applied to concrete marketing solutions. To achieve this, get your programmer to create a backend in which you can add as many business units as you want. In example, you may have Site 1, Site 2, Site 3 or Program 1 (Site 1, Site 2, Site 3) , Program 2 (Site 1, Site 2, Site 3) and so on. After that, make him create an auto-import feature for Google Analytics or at least some CSV, XML or whatever importer.

Inside Google Analytics create a custom report where you include AT LEAST traffic, Avg Page Views, Mobile and everything in the content tab, including Site Overlay. All of this but the Site Overlay is the data you’ll import into your script. Now, you’ll have at least 2 data analysis sources: a general one and the Site Overlay. Take a very careful look at this one and check what are the most clicked areas in your page/site (Tip: if you want to include this into data tracking analysis, simply assign “zones” to links, ie Header=Zone 1, Nav= Zone 2, Sidebar=Zone 3 and so on). Now… is the most important link in your page being clicked the most? If not, why? Just take a look at the position of the most clicked zone and try to move your join page link there. Did it improve? If so, you can refine, if not, change color, shape, make it blink, whatever. Once you start seeing results, you’ll need to use another module you’ll need to add to your script: a page builder. This module will need to build pages according to your optimized template and change all other business units automatically. By the way, it’s very fast and easy as long as you use CSS CODED BY A PROFESSIONAL. If you plan to save $50 or 100 or 200…. well, good luck.

Finally, if you’re using a stats script, make your coder import that data as well so you know what sells and what not. It might be better if you have it custom coded, but as long as you can auto-import this data into your database you’ll be fine.

So now we have all other sites being dynamically targeted and refined. That’s great and you can stop here, or add a degree of complexity (and hopefully results) and make your project totally dynamic and driven by data. In this scenario, your sites will change dynamically depending on time of the day, geo IP and even on how are other sites in the network doing. Let’s say you are using 5 sponsors across your network of 10 sites, and the previous hour Sponsor 1 was the best seller in 5 of your sites, Sponsor 2 in 3 sites and Sponsor 3 in 1 site, while Sponsors 4 and 5 had no sales. Then your program may assign the best sellers to your hotter spots and keep it like that as long as the situation continues.

Well, hard and complex, but believe me, we’re just starting, this is just the tip of the iceberg!

Don’t forget to bookmark this page and visit us again next week: Our sniper goes on the hunt!

Update: I didn’t have time to add the new article, but see a LIVE EXAMPLE of what I said in this post in exchange of the article I didn’t deliver